Best Equipment Financing

Checking your rate won’t impact your credit score

Best Equipment Financing

Checking your rate won’t impact your credit score

What is equipment financing?

Equipment financing is a type of business loan designed specifically to help companies purchase essential equipment — from laptops and office tech to trucks, manufacturing tools, or heavy machinery.
Instead of paying the full cost upfront, you get the equipment now and repay over time — while it powers your business forward.

Whether you’re replacing outdated gear or expanding operations, equipment financing keeps your business moving without draining your cash flow.

Best Equipment Financing

Merchant cash advance

A (MCA) gives your business fast access to working capital in exchange for a share of future sales. It’s flexible, with payments adjusting to your revenue, and requires no collateral.

Invoice factoring

Invoice Factoring lets your business get immediate cash by selling unpaid invoices to a financing company.

Business credit cards

Business credit cards provide quick access to revolving credit for everyday expenses and business growth. They help manage cash flow, build your company’s credit history, and often come with rewards or perks.

Small business grants

Small business grants are funds provided by governments or organizations that you don’t need to repay. They give your business free capital to support growth, innovation, or specific projects.

Crowdfunding

Crowdfunding allows you to raise money from a large group of people online, often in exchange for rewards or early access to your product. It helps validate your idea, build a community, and secure funding without traditional loans.

Peer-to-peer lending

Peer-to-peer lending connects your business directly with individual investors who provide loans online. It offers faster access to funding, often with competitive rates and fewer requirements than traditional banks.

Personal loans

Personal loans give you a lump sum of money that can be used for business or personal needs. They’re repaid in fixed installments and can provide quick funding without requiring business collateral.

Bootstrapping

Bootstrapping means funding your business using your own savings or the revenue it generates, without outside investors or loans. It gives you full control and ownership while growing at your own pace.

Time in Business

Lenders prefer businesses with at least one to two years of proven revenue history. A consistent track record is more appealing than irregular income over a short period.

Credit Score

Your credit score reflects how reliable you are as a borrower. Most lenders require a personal credit score of mid-600s or higher, though some may accept scores as low as 500.

Cash Flow

Lenders want to see that you manage your business cash flow effectively—knowing when money comes in, when it goes out, and what’s left.

Collateral

Some loans require collateral—assets the lender can claim if you default. This could include property, equipment, accounts receivable, or even personal assets like your home.

Working Capital

Your working capital—calculated as current assets minus short-term liabilities—shows whether you have enough liquidity to cover daily operations and additional debt.

Fixed-Charge Coverage Ratio

This financial ratio helps lenders assess whether your business can cover fixed costs (like debt payments and interest). A higher ratio increases your chances of approval.

Types of equipment financing

🧰 Equipment Financing vs. Leasing

Here’s a close look at the similarities and differences between the three:

💡 Feature

🔍 Definition

💸 Payment Terms

📦 Ownership

💰 Down Payment

🛠️ Maintenance Responsibility

📉 Long-Term Cost