The best equipment loans for bad credit should have a credit score requirement of 620 or less. They will also have a combination of fast funding speeds, excellent customer service, and flexible loan repayment terms. While you may not qualify for a lender’s lowest rates with bad credit, these loans should still be able to offer competitive rates compared to other providers.
Here are our picks for the eight best equipment loans for bad credit.
Best Brokers for Equipment Loans for Bad Credit:
- Smarter Finance USA: Best overall broker for flexible qualification requirements
- Lendio: Best broker for low revenue or newer businesses
- Clarify Capital: Best for multiple loan options
- National Business Capital: Best for businesses with strong revenue and cash flow
Best Providers for Equipment Loans for Bad Credit:
- National Funding: Best overall provider for smaller financing needs and personalized service
- SBG Funding: Best for longer-term financing options
- Balboa Capital: Best provider for fast approval and funding speeds
- First Capital Business Finance: Best provider for large financing needs and long repayment terms
Get the Best Business Financing with Expert Guidance from SBG Funding |
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Best Equipment Loans for Bad Credit At a Glance
Provider | Maximum Loan Amount | Estimated Starting Annual Percentage Rate (APR) | Maximum Loan Term | Annual Revenue Requirement | Time in Business Required | Minimum Credit Score |
---|---|---|---|---|---|---|
$1 million | 8% | 5 years | None | None | None | |
$5 million | 7.5% | 5 years | $50,000 | None | 520 | |
Up to 100% of value | 6% | 6 years | $120,000 | 6 months | 550 | |
$5 million | 10% | 5 years | None | None | None | |
$150,000 | 15% | 5 years | $250,000 | 2 years | 600 | |
Up to 100% of value | Varies | 7 years | $250,000 | 6 months | 500 | |
$500,000 | 5% | 5 years | $100,000 | 12 months | 620 | |
$5 million | 19% | 6 years | $96,000 | None | 500 | |
Smarter Finance USA: Best Overall Broker for Flexible Qualification Requirements
Rates & Terms | |
Estimated Starting APR | 8% to 20%-plus |
Loan Amount | $10,000 to $1 million |
Repayment Term | 24 to 60 months |
Repayment Schedule | Weekly, monthly, seasonal, and deferred |
Funding Speed | 2 to 4 days from time of application |
Qualifications | |
Credit Score | None, but 600 is recommended |
Time in Business | None |
Annual Business Revenue | None |
Minimum Down Payment | 0% to 35%, plus a $399 documentation fee |
Why We Like Smarter Finance USA
Smarter Finance USA has some of the most flexible qualification requirements in our guide, as it has no minimums for credit score, time in business, or annual business revenue. It reviews applications on a case-by-case basis in an effort to maximize your approval odds based on your company’s unique strengths.
It specializes in equipment financing for bad credit and is a broker with nearly 40 lenders in its network. Working with a broker can simplify the loan process for you, as you can utilize the team’s expertise to match you with a lender willing to issue funding.
Equipment financing is available for a wide range of business uses. Some examples include heavy equipment financing, such as for excavators, cranes, and backhoes. Financing for vehicles and trucks is also available. Smarter Finance USA can issue funding in nearly any industry, including those in healthcare and food service.
To apply, you can visit the Smarter Finance USA website. Applications can typically be completed in under 10 minutes, with funding to follow in two to four days.
Lendio: Best Broker for Low-revenue or Newer Businesses
Rates & Terms | |
Estimated Starting APR | 7.5% and up |
Loan Amount | $5,000 to $5 million |
Repayment Term | 1 to 5 years |
Repayment Schedule | Monthly |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | 520 |
Time in Business | None, but 12 months is recommended |
Annual Business Revenue | $50,000 |
Minimum Down Payment | Varies |
Why We Like Lendio
Lendio is a loan broker with over 75 lenders in its network. That being said, it states that its equipment financing loan product has partnerships with eight lenders. While that may seem small, the lenders selected by Lendio have excellent customer reviews, flexible loan terms, and a wide range of eligibility criteria.
Working with Lendio, you’ll be paired with a funding specialist. This individual will learn about your specific needs and qualifications to match you with a lender that is best suited for your business goals.
You can get equipment financing for nearly any industry. Some examples include:
- Farm equipment
- Trucking loans and commercial vehicles
- Construction and heavy equipment
- Medical equipment
- Gym equipment
- Restaurant equipment
One thing borrowers should note is that while Lendio states that it can lend to businesses with zero months’ time in business, it can be especially difficult to qualify if you also have bad credit. As a result, we recommend borrowers with bad credit to have at least 12 months of being in business to boost their odds of getting approved.
To apply, you can visit the Lendio website, and applications can usually be completed within minutes. If additional information is needed, you’ll be contacted by either phone or email. It’s important that you watch for these communications as your loan application will not be considered complete until you have provided all requested documents.
Clarify Capital: Best for Multiple Loan Options
Rates & Terms | |
Estimated Starting APR | 6% |
Loan Amount | Varies, up to 100% of equipment value |
Repayment Term | 2 to 6 years, but can vary |
Repayment Schedule | Monthly |
Funding Speed | 1 to 2 days |
Qualifications | |
Credit Score | 550-plus |
Time in Business | 6 months |
Annual Business Revenue | $120,000 |
Minimum Down Payment | 0% |
Why We Like Clarify Capital
Clarify Capital has over 75 lenders in its network, just like that of Lendio. However, Clarify Capital is our pick as the best for multiple loan options because of its lower rates and longer loan repayment terms.
In addition to the qualification requirements listed above, you’ll need to have a business bank account so that your business income can be verified, as Clarify Capital will require at least three to four months of statements. If you don’t have a business bank account, you can check out our recommendations for the best business checking accounts.
Funds from a Clarify Capital equipment loan can be used for almost any business-related purpose. Loan proceeds can be used to purchase computers, furniture, construction equipment, farming equipment, vehicles, and much more. While the broker does not indicate a maximum loan amount, it does state that it offers financing up to 100% of the value of the equipment.
To learn more or to apply, visit the Clarify Capital website.
National Business Capital: Best for Businesses With Strong Revenue & Cash Flow
Rates & Terms | |
Estimated Starting APR | 10% to 60% |
Loan Amount | $10,000 to $5 million |
Repayment Term | 1 to 5 years, but may vary |
Repayment Schedule | Monthly |
Funding Speed | As fast as 24 to 72 hours from time of application |
Qualifications | |
Credit Score | 650 (waived with 1 year time in business and $500,000 in annual revenue) |
Time in Business | 1 year (can be waived with a 650 credit score) |
Annual Business Revenue | $500,000 (can be waived with a 650 credit score) |
Minimum Down Payment | Varies |
Why We Like National Business Capital
Although National Business Capital has one of the highest annual revenue requirements on our list, eligible businesses can qualify with no minimum credit score. It can provide financing for nearly any industry, with its most common clients working in the following:
- Construction
- Professional services
- Ecommerce
- Manufacturing and retail
- Restaurants
- Medical
- Transportation
- Cannabis
As a broker, National Business Capital also has a network of more than 75 different lenders. While this can be advantageous for some business owners, one of the downsides is that the exact eligibility criteria is not always known until after you apply.
With that being said, the application process is simple and is designed to be completed in under one minute. Documentation requirements also tend to be easier than many other lenders. Tax returns and other financial documents, for instance, may not always be required depending on the details of your business qualifications and the type of financing you’re seeking.
As with many business loan brokers, you’ll be paired with a dedicated business advisor. This individual’s role is designed to help pair you with a lender that can offer you the terms you need based on what you’re eligible to get.
To learn more or to apply, head over to the National Business Capital website.
National Funding: Best Overall Provider for Smaller Financing Needs & Personalized Service
Rates & Terms | |
Estimated Starting APR | 15% and up (factor rates as low as 1.11x) |
Loan Amount | Up to $150,000 |
Repayment Term | 24 to 60 months |
Repayment Schedule | Monthly |
Funding Speed | 24 to 72 hours |
Qualifications | |
Credit Score | 600 |
Time in Business | 2 years (4 months business bank statements required) |
Annual Business Revenue | $250,000 |
Minimum Down Payment | None |
Why We Like National Funding
National Funding offers equipment financing for up to $150,000. While that’s the lowest amount on our list, the provider offers a high level of customer service and personalized service for its customers. For those reasons, we selected it as the best option for businesses with smaller funding needs.
It retains the majority of its loans in-house rather than brokering them out to other lenders. Applications are reviewed on a case-by-case basis, and you’ll work with a dedicated funding specialist who will match you with a loan based on your needs and qualifications. Businesses with a long track record of performing well financially have the best chances of getting approved.
National Funding typically specializes in short-term financing. As such, it offers an early payment discount of up to 6% on the remaining balance when you pay off your equipment loan early. Before getting a loan, business owners must also agree to a personal guarantee, something that is required for all of its equipment loans regardless of your business qualifications or the strength of your loan application.
To learn more or to submit an application, visit the National Funding website.
SBG Funding: Best for Longer-term Financing Options
Rates & Terms | |
Estimated Starting APR | Varies, 3.75% average monthly rate |
Loan Amount | Varies, up to 100% of equipment value |
Repayment Term | 1 to 7 years |
Repayment Schedule | Monthly |
Funding Speed | As fast as 48 hours from time of application |
Qualifications | |
Credit Score | 500 |
Time in Business | 6 months |
Annual Business Revenue | $250,000 |
Minimum Down Payment | 0% |
Why We Like SBG Funding
SBG Funding has the longest repayment term out of all the providers we’ve selected. This makes it a good option if you want to lower your monthly payments by spreading your loan over a longer period.
If you plan on doing that, keep in mind you’ll be paying more interest charges over the life of the loan. SBG Funding also advertises its rates as an average monthly fixed percentage. The rates and terms you get may vary depending on the strength of your business credit and finances.
Borrowers should also note that meeting the minimum qualification requirements listed above will not guarantee a loan approval. This is something true of many other lenders. Loan applications that are close to the minimum eligibility criteria may need other compensating factors to boost your odds of approval.
You can visit the SBG Funding website to apply, learn more, or contact a member of the team for any questions you may have. Online applications can be completed in just several minutes, and you can streamline this process by having the last four months of business bank statements ready to send. SBG Funding also does not perform a hard credit pull at any point during the approval process.
Balboa Capital: Best Provider for Fast Approval & Funding Speeds
Rates & Terms | |
Estimated Starting APR | 5% to 20% |
Loan Amount | Up to $500,000 |
Repayment Term | 24 to 60 months, but may vary |
Repayment Schedule | Monthly |
Funding Speed | As fast as same day |
Qualifications | |
Credit Score | 620-plus |
Time in Business | 1 year |
Annual Business Revenue | $100,000 |
Minimum Down Payment | None |
Why We Like Balboa Capital
Balboa Capital can offer some of the fastest approval and funding speeds out of all the providers in our guide. From start to finish, it’s possible to get funding on the same day that you apply. Depending on when you submit an application, one-hour approvals are available during regular business hours, in addition to same-day funding.
This provider can do this because it offers a streamlined application-only process under certain circumstances. Applications for hard collateral under $500,000 are eligible for this reduced documentation process as well as soft collateral applications for up to $350,000.
The downside, however, is that Balboa Capital does have the highest minimum credit score requirement on our list. You’ll need a credit score of 620, 12 months’ time in business, and $100,000 in annual revenue. Businesses that qualify can get up to $500,000 in financing, with rates that typically range between 5% and 20% depending on your business credit and finances.
Submitting an initial application to this provider will not affect your score as Balboa Capital conducts a soft credit pull to determine if you might qualify. If you don’t, no additional credit pulls will be done. To apply, you can visit the Balboa Capital website and complete a form with your business information and the details of the financing you need.
First Capital Business Finance: Best Provider for Large Financing Needs & Long Repayment Terms
Rates & Terms | |
Estimated Starting APR | 19% to 35% |
Loan Amount | $5,000 to $5 million |
Repayment Term | 12 to 72 months |
Repayment Schedule | Monthly |
Funding Speed | 24 to 48 hours |
Qualifications | |
Credit Score | 500 |
Time in Business | None, but 6 months is recommended |
Annual Business Revenue | $96,000 |
Minimum Down Payment | Varies |
Why We Like First Capital Business Finance
First Capital Business Finance can issue equipment financing to business owners with bad credit as it places a larger emphasis on a company’s income, industry type, and time in business. It offers financing for all types of business equipment, including commercial trucks, vehicles, construction, office, and heavy manufacturing equipment.
A unique aspect of this provider is the fact that it can issue financing to brand-new businesses with no minimum time in business. We do, however, recommend that you have a history of at least six months to boost your approval odds. First Capital Business Finance offers one of the longest repayment terms on our list, which can help your business cash flow if you’re looking to spread your monthly payments over a longer period of time.
Working with this provider will also allow you to partner with the firm’s financial experts for personalized guidance and strategic insights to help your business. You’ll have assistance throughout the loan process, including getting tailored solutions for your circumstances, transparent loan terms, and a quick approval and funding process.
To apply, visit the First Capital Business Finance website.
How We Chose the Best Equipment Loans for Bad Credit
The following items were considered in our selection of the best equipment loans for bad credit:
- Minimum credit score requirement
- Other qualification requirements, such as revenue and time in business
- Interest rates and estimated APRs
- Loan amount and repayment terms offered
- Application, approval, and funding speeds
- Documentation requirements
- Down payment requirements
- Customer reviews and ratings
Alternatives to Bad Credit Equipment Loans
Getting an equipment loan with bad credit can sometimes be challenging. Even if you are approved, you may get a higher interest rate. Below are some alternatives to consider if you’re looking for sources of funding that are easier to get or have lower rates and fees. Also check out our guide on how to get a small business loan for tips on not only improving your chances of getting approved, but also at the best possible rate:
- Equipment leasing: An equipment lease allows you to rent business equipment for a limited period of time. Once the lease expires, you must return the equipment. You can read our guide on equipment financing to determine whether a loan or lease is better suited for your business.
- Small business line of credit: This is a revolving line of credit that allows you to draw funds on an as-needed basis. In some instances, you can get a low introductory rate. Check out our list of the leading small business lines of credit.
- Rollover for business startups (ROBS): A ROBS gives you access to your personal retirement accounts without having to pay taxes or early withdrawal penalties. You can avoid monthly payments and interest charges that you’d otherwise be paying on a loan. We recommend using a company from our list of the best ROBS providers to walk you through this process.
- Invoice factoring: This can be a good option if you are awaiting payment from customers but need funds more quickly to use for other areas of your business. To start, see our top-recommended invoice factoring companies.
Frequently Asked Questions (FAQs)
Yes, you can qualify for financing with bad credit if you can show other strengths in your loan application. You can do this by agreeing to a large down payment, showing that your business is profitable, or setting aside cash to be used as a security deposit. Financing equipment that holds its value very well can also improve the terms of a loan approval.
You can get equipment financing for bad credit from banks and online lenders. Companies that review applications on a case-by-case basis and have a large marketplace of lenders are best for improving your chances of being approved.
With bad credit, you can expect to receive rates at 15% or higher. However, the rate you can get will depend on several other items, such as your time in business, the type of equipment being financed, the down payment amount, and business revenue. With so many variables, shop multiple lenders to ensure you’re getting a competitive rate.
Bottom Line
Getting equipment financing with bad credit is possible with the right lender. The companies we’ve chosen all have low credit score requirements but can still offer competitive rates and loan terms. As with most loans, it’s a good idea to get a quote from several companies before making any final decisions.