Equipment Financing

Purchase the equipment your business needs and pay over an extended schedule.

Explore equipment financing options with National Business Capital.

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How Do You Qualify for Business Equipment Financing?

business-line-of-credit-requirements

1+ Year in Business

annual-revenue-for-business-line-of-credit

$500,000+ in Annual Revenue

  • Plus IconWhat Is Equipment Financing?
  • Plus IconHow Does Equipment Financing Work?
  • Plus IconBenefits of Equipment Loans
  • Plus IconHow Will I Benefit From Equipment Financing?
  • Plus IconWhat Can You Use an Equipment Loan for?
  • Plus IconHow Do You Qualify for Business Equipment Financing?
  • Plus IconHow to Apply for Equipment Financing With National
  • Plus IconWhy Choose National Business Capital for Equipment Financing?

What Is Equipment Financing?

What Is Equipment Financing?

Regardless of your industry, we can help you obtain the best deal on business equipment financing for virtually every type of equipment. We work with a wide range of business types, including medical, software, manufacturing, commerce, food services, automotive, and much more.

If you’re looking for equipment financing to grow your business, offer new products or services, or simply get a competitive edge, we can help! Our streamlined equipment financing process will help you secure the capital you need in as little as 24 hours. Our Business Financing Advisors will tell you everything you need to know and give you the opportunity to ask any questions.

All of our business equipment financing options are fully customizable to fit you and your business needs.

How Does Equipment Financing Work?

How Does Equipment Financing Work?

Instead of a business paying the full cost of equipment up front, a lender will purchase the equipment on their behalf. The business then repays the total cost, plus interest, through regular installments to their lender and maintains ownership afterward.

  • Borrower shops around for lenders, finds a few that align with their goals, and selects the best offer
  • The lender they’ve chosen sends payment to the vendor offering the borrower’s chosen equipment
  • The vendor provides the borrower with said equipment
  • The borrower pays back the principal and interest to the lender in regular installments throughout the term outlined in their contract

At the end of the repayment term, the borrower keeps the equipment. This is the main difference between equipment financing and an equipment lease, as a lease agreement requires the borrower to return the equipment at the end of the term.

There are other ways to finance an equipment purchase. For example, you can secure a traditional business loan and leverage the funds to make the purchase. However, standard equipment financing typically has better terms, and more importantly, the purchased asset can act as collateral for the financing.

Benefits of Equipment Loans

Benefits of Equipment Loans

Equipment often comes with a hefty price tag. Outside of a less stressful payment process, here are a few of the most notable benefits of equipment loans for business.

  • Protects Cash Flow: Even if your company could afford the equipment outright, a loan keeps that capital liquid. Cash flow can make or break a business.
  • Supports Business Growth: If this equipment will help your business scale to the next level, it’s a worthy investment. An equipment loan can help you make that step without requiring you to first save up for the full cost of equipment.
  • Fewer Requirements Than Other Business Loans: Equipment financing generally doesn’t require underwriting that’s as stringent as other types of small business loans, meaning your newer or struggling business may be able to get this type of loan. Plus, because you can use the equipment you’re buying as collateral, you may not need to put as much on the line to secure the loan.
  • Tax Advantages: You can write a lot of different types of business equipment off for your company’s taxes. Plus, you may even be able to claim your equipment loan payments as an operating expense. Consult with your accountant to explore how your equipment — and potentially its loan — could reduce your tax liability.

Wondering about the benefits of equipment financing in your business? Reach out to National Business Capital’s expert Business Finance Advisors for more detailed information about your specific situation.

How Will I Benefit From Equipment Financing?

Equipment Financing Benefits

The benefits of business equipment financing involve being able to quickly acquire equipment with minimal upfront fees and manageable payments. This can improve your cash flow, balance sheets, and even features certain tax advantages. Business equipment financing is a strategic way to boost your productivity without an enormous upfront investment.

1. Improved cash flow

Business equipment financing allows you to acquire the equipment you need now – and manage the costs later on. There’s no need to make a large, lump-sum payment to cover the entire price upfront. Instead, the cost of the equipment will be broken down into more manageable payments – which will be easier on your cash flow.

2. Greater productivity

Business equipment financing gives you a head start on boosting your productivity. You’ll be able to put your plans to action now and make payments as your business grows.

3. Enhanced forecasting

There are no surprises when it comes to business equipment financing. Your payments will stay steady over time and you’ll know exactly how much you’ll be paying for how long. The interest rate you’ll receive will also be locked in for the duration of your loan. With exact figures in mind, you’ll be able to effectively forecast your business’s cash flow.

4. Potential tax advantages

Business equipment financing may allow you to claim additional deductions on your annual tax return. Make sure to contact your tax advisor to learn about the specifics, including how much you could possibly save.

5. Flexibility

You have complete freedom to choose your vendor and the type of equipment you’d like to purchase. Unlike some banks, National doesn’t impose restrictions on the type of equipment you can finance – as long as it makes sense for your business it’s a good fit!

Start growing your business right away. Learn how you can skip the standard 2 week waiting period and get new or used equipment financing in less than 24 hours.

What Can You Use an Equipment Loan for?

What Can You Use an Equipment Loan for?

While other types of financing offer broad use cases, equipment loans are designed specifically for equipment purchases. The term “equipment,” however, is very broad.

Businesses can leverage equipment loans to finance:

  • Computers
  • Office furniture
  • Vehicles for commercial use
  • Machinery
  • Commercial kitchen equipment
  • HVAC units
  • Phone systems
  • Printers and copiers
  • Medical equipment
  • Industrial equipment

In other words, if your company needs to make a big purchase of a tangible asset, an equipment loan can help you break it into manageable payments that you make over time.

How Do You Qualify for Business Equipment Financing?

How Do You Qualify for Business Equipment Financing?

In order to qualify for business equipment financing, you’ll need at least 1+ Year in business and $500,000 in annual revenue.

While banks and credit unions have low approval rates, National Business Capital offers enormous flexibility when it comes to qualifying for equipment financing.

Our exclusive lender marketplace makes it easier than ever to find the most competitive equipment financing offer you qualify for. Rather than apply to lenders individually, you with us apply once, receive multiple options, and select the one that best fits your needs alongside expert guidance from our Business Finance Advisors.

How to Apply for Equipment Financing With National

How to Apply for Equipment Financing With National

National Business Capital’s streamlined process makes it easy to compare the most competitive offers you qualify for. Here’s how it works.

  • Apply Securely Within Minutes – Move through our streamlined application within minutes and upload your business documents with zero risk.
  • Review Your Offers – Compare your offers with expert advice from our team and select the best one for your specific circumstances.
  • Receive Your Equipment – Your lender sends payment to the vendor, who then provides you with the equipment you financed. Repayment is handled with your lender over the course of your term.

Start growing your business right away. Learn how you can skip the standard 2-week waiting period and get your new or used equipment financing in under 24 hours!

 

Why Choose National Business Capital for Equipment Financing?

Why Choose National Business Capital for Equipment Financing?

Better Terms. Faster Funding. Easier Process.

Accelerate your success with frictionless financing and expert advice that breaks down the barriers to growth for every entrepreneur. Thrive with access to a business lending marketplace that’s built for entrepreneurs, by entrepreneurs.

Experience a time-saving machine that cuts approval times from months to hours. Leverage an extensive network of over 75 lenders and teams of expert financing advisors to ensure you’ll always have access to the capital that best
fits your business.

Working with NBC, gain a financing partner for the future, ensuring your business has the capital it needs to seize every opportunity and grow without limits.

National Business Capital. Grow to Greatness.

How It Works

You’re only a few clicks away from the capital you need to reach your full potential.

  • 1.Apply Securely Within Minutes

    Move through our streamlined application within minutes and upload your business documents with zero risk.

    Apply Now
  • 2.Review Your Offers

    Compare your offers with expert advice from our team and select the best one for your specific circumstances.

  • 3.Get Funded

    With your money in hand, you can take advantage of opportunities and tackle challenges with confidence.

HowItWorks1_Apply
HowItWorks2_Review
HowItWorks3_Get_Funded

Equipment Financing FAQs

Is it hard to get financed for equipment?

It’s not very hard to get business equipment financing. In fact, in many cases, it’s actually easier to get approved for business equipment financing than other types of loans. All you need to qualify is a FICO score of at least 1+ year of business history and at least $500,000 in annual revenue. 

With business equipment financing, the materials you’re purchasing will act as collateral for the loan. This gives lenders an extra layer of security – which in turn improves your approval odds. 

National has business equipment financing options for all types of businesses, and you’ll find it’s easier to get approved compared to traditional banks. Plus, the application process is fast and straightforward. There’s no need to go back and forth collecting numerous documents. You can simply upload your paperwork into the online portal with just a few clicks. National’s application process for business equipment financing is designed to be completed in about a minute. Funding times for your loan can be as fast as 3 days or less.

How long can you finance used equipment?

You’ll typically be able to finance used equipment for 1 to 5 years. If the equipment you are purchasing isn’t too expensive, you may be able to get a shorter-term loan. 

The repayment term on your business equipment loan is important because it represents how long you’ll be in debt as well as the overall cost of financing. Longer-term loans feature lower monthly payments but can be more expensive over the loan’s lifetime. Shorter-term loans have higher monthly payments, but you’ll be in debt for less time and save on interest fees overall. 

Still, many businesses will select a repayment term based on the monthly payment amount they can afford. Make sure to consult with one of our Business Financing Advisors to help you understand which would work best for your scenario.

Can I get startup equipment financing with bad credit?

Yes! It is possible to secure startup equipment financing even with bad credit. You’ll need to have at least 6 months of business history and $500,000 in annual revenue in order to bypass credit score requirements. 

National fills in the gaps where banks and traditional financing options fall short – especially when it comes to financing startups. With a FICO score requirement of at least 650, National is inherently more flexible. But even if your credit score is lower than 650, you may still be able to access financing solutions catered to your needs.

How to choose an equipment financing loan

There are several types of equipment financing available, so it’s necessary to identify a business’ needs as well as each lender’s eligibility requirements and costs. Evaluate these factors when choosing an equipment financing loan.

Business Needs

Before choosing an equipment financing loan, evaluate why the financing is necessary and whether the equipment will help the business improve efficiency or otherwise add to its bottom line.

Ultimately, each business’ needs dictate the type and size of equipment financing loan it needs. In some cases, equipment financing may not be the best option, or purchasing new equipment may not be a savvy business decision.

Eligibility Requirements

It’s necessary to look at eligibility requirements when comparing equipment financing so you know whether you’re likely to qualify for a loan at a competitive rate. Eligibility requirements vary by lender, but equipment financing companies generally consider these eligibility factors:

Cost

Equipment loan borrowers generally pay interest rates spanning anywhere from 2% to 20%. However, equipment financing also may come with application fees and origination fees that add to the overall cost. Business owners should expect to pay origination fees equal to around 3% of the total loan amount, although this cost can vary from lender to lender.

Finally, most equipment financing requires a down payment of around 15% or 20% of the purchase price, though this number varies, and some lenders don’t require down payments at all.


When choosing an equipment financing loan, it’s best to compare providers based on the factors above.

What is the typical range of interest rates on equipment loans?

Interest rates range from 7% to over 50%, depending on the lender you’re working with, the financial background of your business, and the economic conditions surrounding the transaction. Equipment financing rates mirror those of secured financing products, as the purchased equipment serves as collateral for the loan.

What is the typical term for an equipment loan?

Equipment loans are generally longer term. Repayment ranges from 3 to 5 years on average, but some lenders offer prepayment discounts, which allow you to shorten your repayment schedule considerably.

Grow By Joe

Everything You Need to Know About Equipment Financing Interest Rates

National Business Capital's CEO offers an honest and transparent guide to equipment financing interest rates.

10 Reasons Why National Business Capital Offers the Best Small Business Financing

BankDirect Lenders

Paperwork

  • 3 Months Bank Statements
  • No Tax Returns Required
Bank
  • 2-3 Years Tax Return
  • 2-3 Years Financials
Direct Lenders
  • 3-6 Months Bank Statements
  • 1 Year Tax Return
  • 1 Year Financials

Application

  • One Page – One Minute
  • DocuSign
Bank
  • Lengthy
  • Paper Intensive
Direct Lenders
  • Multi-Page Application

Number of Lenders

75+

Bank

1

Direct Lenders

1

Service Level

Business Advisor

Bank

Processor

Direct Lenders

Programmatic

Approval Process

Hours/Days

Bank

Weeks/Months

Direct Lenders

Days/Weeks

Speed to Funding

Hours/Days

Bank

Months

Direct Lenders

Days/Weeks

Collateral Requirements

Not Necessary

Bank

Always

Direct Lenders

Sometimes Required

Business Profitability

Not Necessary

Bank

Last 2 Years

Direct Lenders

Sometimes Required

Credit Score

No Minimum FICO

Bank

680+ FICO

Direct Lenders

600+ FICO

Credit Check

Soft Pull

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Hard Pull

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Hard Pull

Customer Reviews

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