Best Equipment Financing Options Of 2025

0
Best Equipment Financing Options Of 2025

For many business owners, the reality is that they can’t conduct their operations without the help of some equipment — whether it’s surgical instruments and computers for your medical business, a commercial oven for your bakery, or hair dryers for your new salon. Depending on the type of business you’re running, these costs can stack up fast, which is why it can be helpful to turn to equipment financing.

Below, CNBC Select rounded up some of the best equipment financing options out there. We considered qualities like funding amount, credit requirements and application process. Read more on our methodology below.

Best equipment financing options of 2025

Compare small business loans

Best for fair credit

National Funding

  • Types of loans

    Working capital loans, short term loans, equipment financing loans

  • Better Business Bureau (BBB) rating

  • Loan amounts

  • Terms

    Up to 5 years, depending on the loan type

  • Minimum credit score needed

  • Minimum requirements

    Must be in operation for at least six months and have at least $250,000 in annual sales

Pros

  • Offers a higher funding amount at $500,000
  • No-cost application
  • Application approval in as little as 24 hours
  • Doesn’t require collateral
  • Offers an early payoff discount

Cons

  • High annual sales requirement to qualify for the loan

Who’s this for? Borrowers with less-than-excellent credit should consider National Funding. This lender will consider applicants with fair credit, typically defined as a FICO credit score between 580 and 669.

Standout benefits: This lender requires a minimum of only six months in business, which makes it more accessible for businesses that are still fairly new.

[ Jump to more details ]

Best for same-day funding

OnDeck

  • Types of loans

  • Better Business Bureau (BBB) rating

  • Loan amounts

  • Terms

  • Minimum credit score needed

  • Minimum requirements

    In business at least 1 year, $100,000 annual revenue, business bank account

Pros

  • Potential for same-day cash disbursement (only available in certain states, for term loans up to $100,000)
  • Top-tier A+ rating with the BBB
  • Low minimum credit score
  • Fixed monthly payments
  • 100% Prepayment Benefit option, so you can pay your loan off early without any penalty or fee

Cons

  • Doesn’t lend to businesses in Nevada, North Dakota or South Dakota
  • Early prepayment fee if you don’t qualify for the 100% Prepayment Benefit

Who’s this for? Need your money ASAP? OnDeck offers same-day funding for term loans of up to $100K and for businesses in certain states. You must also complete the process and checkout before 10:30 a.m. EST on a weekday in order to receive your funds by 5 p.m. EST that same day. This can be an expedient way to receive funding if you qualify for the same-day process.

Standout benefits: OnDeck’s term loan has a minimum credit score requirement of just 625, also making it fairly accessible for those with fair credit.

[ Jump to more details ]

Best for options for $0 down

Cardiff

  • Types of loans

  • Better Business Bureau (BBB) rating

  • Loan amounts

  • Terms

  • Minimum credit score needed

  • Minimum requirements

    Be in business for at least six months; have $100,000 gross annual revenue

Pros

  • Low minimum credit score requirement
  • Quick approval time of just four hours or less
  • Repayment terms as long as 72 months

Cons

  • Must already be in business for at least 6 months
  • $100,000+ annual revenue requirement

Who’s this for? If you want to avoid a down payment on your loan, Cardiff offers equipment financing with the option to pay $0 down for the funding. Typically, equipment financing loans require a down payment between 10% and 20% of the loan amount. Zero dollars down makes it easier to snag a loan without putting a dent in your cash flow.

Standout benefits: Cardiff offers a five-minute application process so you can submit your information and qualifications as quickly as possible.

[ Jump to more details ]

Best for small loan amounts

Crest Capital

  • Types of loans

    Equipment financing, vehicle financing, software financing

  • Better Business Bureau (BBB) rating

  • Loan amounts

  • Terms

  • Minimum credit score needed

    Exact credit score isn’t disclosed but language suggests that credit history should be in good standing

  • Minimum requirements

    Be in business for at least two years, be profitable and must have avoided bankruptcies

Pros

  • Loan funding amounts as low as $5,000
  • Approval within hours
  • Finances “soft costs” like delivery and equipment installation
  • No yearly re-qualification required

Cons

  • Must already be in business for at least two years
  • Exact credit score requirement isn’t disclosed

Who’s this for? Qualified borrowers who just need a small loan can get one from Crest Capital, which lets applicants borrow as little as $5,000.

Standout benefits: Crest Capital provides equipment financing for several industries including healthcare, IT, construction and more.

[ Jump to more details ]

Best for large loan amounts

Kapitus

  • Types of loans

    Equipment financing, inventory loans, payroll loans, debt consolidation

  • Better Business Bureau (BBB) rating

  • Loan amounts

  • Terms

  • Minimum credit score needed

  • Minimum requirements

    Be in business for at least three years (one year for credit scores of 775+)

Pros

  • No maximum funding limit
  • Can consider businesses with just one year of activity if you have a higher credit score
  • Automated application decisions offered as long as you’re applying for no more than $350,000

Cons

  • $25,000 minimum funding amount for titled equipment; $15,000 minimum for un-titled equipment

Who’s this for? Borrowers who need a big loan will be happy that Kapitus offers loans with no maximum funding amount. Consider this lender when you’re worried that your funding needs are too large for others to accommodate.

Standout benefits: This lender offers the choice between monthly and weekly repayment schedules, which can give you flexibility in terms of how you repay your loan.

[ Jump to more details ]

More on our picks for best equipment financing options

National Funding

OnDeck

Cardiff

Crest Capital

Kapitus

Is equipment financing tax deductible?

Section 179 of the IRS Tax Code lets businesses write off all or part of the cost of purchasing equipment for the business. You must claim the write-off in the same year in which the equipment was financed, though.

This can be a huge tax benefit for your business, especially in that first year when you may be accumulating other large expenses to get things up and running.

Before getting started, though, you might want to speak to a tax professional who can help you figure out if your business qualifies for the deduction and which purchases you can write off.

Pros and cons of equipment financing

Before applying for an equipment financing loan, consider the following advantages and disadvantages.

Pros

  • Fast funding: Most lenders can provide an application decision and funding as soon as the same business day. Otherwise, you may receive funding on the next business day.
  • Considers fair credit: Many lenders look for fair credit or better, but the higher your credit score the more likely you are to be approved for favorable loan terms.
  • Tax benefits: You can write off up to 100% of your equipment financing costs in the same year that you purchased the equipment.

Cons

  • Requires a down payment: It’s not uncommon to see a down payment requirement of up to 20% for equipment financing. However, some lenders require $0 down.

FAQs

What is equipment financing?

Equipment financing is the process of acquiring a loan to purchase equipment for your business. In some instances, you can also lease equipment instead of buying it outright.

What credit score do you need for equipment financing?

The exact credit score you need can depend on the lenders you apply to, but many would prefer to see a credit score that’s in the “fair” range or better. Usually, it’s more beneficial to apply with a credit score that’s as healthy as possible so you can qualify for favorable rates.

Can you get an equipment loan with bad credit?

Credit requirements vary depending on the lender. In order to get an equipment loan with bad credit, consider applying to lenders with lower credit score requirements.

Why trust CNBC Select?

Our methodology

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.


link

Leave a Reply

Your email address will not be published. Required fields are marked *