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.
Compare small business loans
Best for fair credit
National Funding
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Types of loans
Working capital loans, short term loans, equipment financing loans
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
Up to 5 years, depending on the loan type
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Minimum credit score needed
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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.
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Best for same-day funding
OnDeck
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Types of loans
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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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.
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Best for options for $0 down
Cardiff
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Types of loans
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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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.
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Best for small loan amounts
Crest Capital
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Types of loans
Equipment financing, vehicle financing, software financing
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
Exact credit score isn’t disclosed but language suggests that credit history should be in good standing
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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.
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Best for large loan amounts
Kapitus
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Types of loans
Equipment financing, inventory loans, payroll loans, debt consolidation
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Better Business Bureau (BBB) rating
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Loan amounts
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Terms
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Minimum credit score needed
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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.
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More on our picks for best equipment financing options
National Funding
Loan amounts
Up to $150,000 for equipment financing
Minimum requirements
Must be in operation for at least six months and have at least $250,000 in annual sales
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OnDeck
Loan amounts
$5,000 to $250,000
Minimum requirements
In business at least 1 year, $100,000 annual revenue, business bank account and a personal FICO score of at least 625
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Cardiff
Loan amounts
Up to $250,000
Minimum requirements
Be in business for at least six months; have $100,000 gross annual revenue
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Crest Capital
Loan amounts
$5,000 to $500,000
Minimum requirements
Be in business for at least two years, be profitable and don’t have any bankruptcies on your record
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Kapitus
Loan amounts
$15K minimum for non-titled equipment; $25K minimum for titled equipment
Minimum requirements
Be in business for at least three years (one year if you have a credit score of 775 or higher)
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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.
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Why trust CNBC Select?
Our methodology
To determine the best equipment financing options, CNBC Select analyzed a dozen U.S. small business loan lenders offering equipment financing options. For this roundup, we didn’t evaluate business lines of credit, invoice factoring/financing or merchant cash advances since they either have a long application process (like SBA loans) or act differently than a traditional term loan or equipment financing loan.
We compared each equipment financing option on a range of features, including:
- Minimum and maximum loan amounts
- Credit score needed
- Application requirements
- Streamlined application process
- Fund disbursement
- Customer support
- Better Business Bureau rating
- Customer reviews, when available
The rates and fee structures for equipment financing and small business loans are subject to change without notice, and they often fluctuate in accordance with the prime rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee that the interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness.
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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.
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