The best equipment loans for bad credit have flexible credit requirements, fast funding timelines, and responsive customer support. You may not qualify for a lender’s lowest rates, but the right option should still provide competitive pricing and terms compared with similar lenders.
Here are my top picks for the six best equipment loans for bad credit:
- Lendio: Best overall for multiple options
- Smarter Finance USA: Best for flexible qualifications
- National Funding: Best for small financing amounts
- Clarify Capital: Best for low credit scores
- SBG Funding: Best for high approval rates
- Ameris Bank Equipment Finance: Best for fast funding speeds
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Best equipment loans for bad credit at a glance
Provider | Max. loan amount | Est. starting APR | Max. loan term | Req. annual revenue | Min. credit score |
|---|---|---|---|---|---|
 | $5 million | 7.5% | 10 years | $50,000 | 520 |
 | $1 million | 6% | 5 years | None | |
 | $150,000 | 15% | 5 years | Not stated | 600 |
 | Up to 100% of equipment value | 6% | Varies | $120,000 | 550 |
 | Up to 100% of equipment value | 1.75% | 7 years | $350,000 | 600 |
 | $500,000 | 5% | 5 years | $100,000 | 620 |
Lendio: Best overall for multiple options
| |
Rates and terms | |
Estimated starting APR | 7.5% and up |
Loan amount | $5,000 to $5 million |
Repayment term | 1 to 10 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 I like Lendio
Lendio is my top overall pick because it gives you access to a wide range of loan options in one place. As a broker with a network of 75-plus lenders, you can submit one application and be considered by multiple lending partners, which can save you a lot of time and hassle. Other brokers on my list, like Clarify Capital, are worth a look, but Lendio tends to stand out for its flexible repayment options and generally easier qualification criteria.
When you work with Lendio, you’ll typically be matched with a dedicated funding manager who helps guide you through the process. They’ll learn what you need, point you toward the best-fit funding solution, and walk you through your financing choices. If you’re approved, you can use the funds for almost any business purpose, including purchases like vehicles, machinery, appliances, medical equipment, or office furniture.
You can apply for free on Lendio’s website, and checking your options usually won’t affect your credit score. Just be aware that if the lender or Lendio needs more details, they may reach out by email or phone. Keep an eye out and respond quickly, since your application is not fully complete until you’ve submitted any requested documents.
Smarter Finance USA: Best for flexible qualifications
| |
Rates and terms | |
Estimated starting APR | 6%+ |
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 I like Smarter Finance USA
I recommend Smarter Finance USA if you’re seeking flexible qualification requirements because it is the only company in this guide that has no minimum requirements for time in business, revenue, or credit score. It is a broker that specializes in equipment financing and has around 40 lenders in its network. It also operates with no minimum qualification requirements, as it prefers evaluating each application on a case-by-case basis to maximize your approval odds.
With that being said, a credit score below 600 can make it particularly challenging to get financing. Additionally, having compensating factors, such as a large down payment or significant financial reserves, can help offset weaknesses in your application.
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.
National Funding: Best for small financing amounts
| |
Rates and terms | |
Estimated starting APR | 15% and up (factor rates as low as 1.11×) |
Loan amount | Up to $150,000 |
Repayment term | 24 to 60 months |
Repayment schedule | Monthly |
Funding speed | As fast as 24 hours |
Qualifications | |
Credit score | 600 |
Time in business | 2 years |
Annual business revenue | Not stated |
Minimum down payment | Not stated |
Why I like National Funding
National Funding has the lowest maximum loan amount in this roundup, but it makes up for it with hands-on, personalized support. That’s why I see it as a strong fit for businesses with smaller equipment financing needs.
In comparison to other providers, National Funding 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.
National Funding primarily focuses on short-term options and offers an early payoff discount of up to 6% on the remaining balance if you pay off your equipment loan ahead of schedule. One key detail to note is that a personal guarantee is required for all equipment loans, no matter how strong your business profile is.
To apply or learn more, head to the National Funding website. You’ll need an equipment quote from your vendor as part of the process, and businesses with a solid financial track record tend to have the best approval odds.
Clarify Capital: Best for low credit scores
| |
Rates and terms | |
Estimated starting APR | 6% |
Loan amount | Up to 100% of equipment value |
Repayment term | Varies |
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 I like Clarify Capital
Clarify Capital is my pick for companies seeking a provider with low credit score requirements. Whereas other lenders in this guide have no hard minimum credit score, such as Smarter Finance USA, it still has a recommended minimum of 600. And while others listed here, like Lendio, have lower credit score requirements, it can be more difficult to secure a more competitive rate compared with Clarify Capital.
Keep in mind that while rates may start around 6%, the lowest pricing is typically reserved for the strongest applicants. If you don’t have excellent credit, you probably won’t qualify for the very best rates. Still, eligibility can be fairly flexible, and because this broker works with 75-plus lenders, you can be matched with the best rates and terms you qualify for without applying to each lender individually.
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.
To learn more or to apply, visit the Clarify Capital website.
SBG Funding: Best for high approval rates
| |
Rates and terms | |
Estimated starting APR | Varies, starting at 3.75% |
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 | 600 |
Time in business | 6 months |
Annual business revenue | $350,000 |
Minimum down payment | 0% |
Why I like SBG Funding
SBG Funding advertises an 85% overall approval rate, which can make it a reassuring option if you’re worried about getting approved, assuming you meet the stated minimum requirements.
Applicants should note, however, that meeting the stated eligibility criteria does not guarantee approval, as there could be additional requirements depending on your specific company’s circumstances and the details of the financing you’re seeking. As with most other lenders, I recommend being able to document compensating factors to offset any weaknesses in your loan application. This can include a large down payment, a large amount of financial reserves, or an upward trend in revenue.
Another perk is flexibility in repayment. SBG Funding may be able to tailor terms around your cash flow, and in some cases, you could even qualify for deferred payments for up to 90 days.
To get started, you can apply or reach out through SBG Funding’s website. The online application takes just a few minutes, and it helps to have the last four months of business bank statements ready. SBG Funding also doesn’t do a hard credit pull during the approval process.
Ameris Bank Equipment Finance: Best for fast funding speeds
| |
Rates and 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+ |
Time in business | 1 year |
Annual business revenue | $100,000 |
Minimum down payment | None |
Why I like Ameris Bank Equipment Finance
Ameris Bank Equipment Finance, formerly Balboa Capital, stands out for speed. In many cases, you can move from application to funding the same day, and one-hour approvals may be available during regular business hours, depending on when you apply. With providers like Lendio and National Funding, you may have to wait until the next business day to hear back.
Additionally, this provider offers a streamlined application-only process under certain circumstances. Applications for hard collateral under $500,000 and for soft collateral for up to $350,000 are eligible for this reduced documentation process. Notably, it has the highest minimum credit score requirement in this guide. However, it’s still favorable, and there are other perks to working with this provider.
Your initial application won’t impact your credit score since the company uses a soft credit pull to see whether you’re likely to qualify. If you’re not a fit, there typically aren’t additional credit checks. To apply, head to the Ameris Bank Equipment Finance website and fill out a short form with your business details and the type of financing you’re looking for.
How I chose the best equipment loans for bad credit
To find the best equipment loan providers for borrowers with bad credit, I focused on criteria that balance accessibility with affordability. Since many traditional lenders have strict credit requirements, I prioritized options that give business owners flexibility.
- Minimum credit score requirements: I selected lenders that are willing to work with a variety of credit scores, as low as 500.
- Other qualification requirements: I considered companies with reasonable revenue and time-in-business minimums so that newer or smaller businesses could still qualify.
- Loan amounts and terms: I looked for providers offering a range of loan sizes and flexible repayment terms, allowing borrowers to finance both large and small equipment purchases with manageable monthly payments.
- Interest rates and estimated APRs: I evaluated the transparency and competitiveness of rates while keeping in mind that borrowers with bad credit will likely pay more. Lenders with clear pricing and no hidden fees ranked higher.
- Ease of application: I gave preference to companies with a simple, online application process and minimal paperwork, which is especially important for small business owners who need fast access to capital.
- Approval and funding speed: Since equipment needs can be time-sensitive, I prioritized providers known for fast decisions and funding timelines, often within a few business days.
- Documentation requirements: I prioritized lenders that don’t ask for excessive documentation, especially for applicants who may not have detailed financial records.
- Down payment requirements: I considered whether the company requires a large upfront investment. Those offering zero or low-down-payment options were rated more favorably.
- Customer reviews and ratings: Finally, I factored in real customer experiences, focusing on feedback related to transparency, responsiveness, and support throughout the borrowing process.
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 how to get the best possible rate.
How to choose an equipment loan lender
When choosing a lender for an equipment loan, ensure you work with one that fits your budget and business needs. Keep the following factors in mind when shopping around.
Alternatives to bad credit equipment loans
If you want to cover all your bases and ensure you’re choosing the right type of financing, there are some alternatives to equipment financing that you may be eligible for. Consider the following:
- Equipment lease: Equipment leasing allows you to rent business equipment for a limited period. 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: A small business line of credit acts as a revolving credit facility, in which you can request a draw, have the funds deposited into your account of choice, and repay the balance over time. You can use it on an as-needed basis, with limited restrictions, as long as the funds are used for business purposes. Check out our roundup 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: Invoice factoring provides financing opportunities for businesses that allow them to sell their invoices to sustain cash flow. 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.
- Home equity line of credit (HELOC): Similar to a business line of credit, a HELOC is a revolving credit facility based on the value of your home. You can use it with limited restrictions and on an as-needed basis. For more information, check out our guide on using a HELOC to fund your business.
Frequently asked questions (FAQs)
Yes, it’s possible to qualify for financing with bad credit if the rest of your application is strong. Lenders may be more willing to approve you if you can offer a larger down payment or provide cash as a security deposit. Your rate will still vary based on factors like time in business, the equipment you’re financing, and your business revenue.
Equipment financing can have restricted uses and may be subject to higher rates and fees than other types of business loans. However, they can be useful if you need to acquire a piece of equipment that will benefit your business operations daily.
Yes, equipment financing can impact your business credit. Many lenders report payment history to business credit bureaus, so on-time payments can help build your credit profile over time. Missed or late payments, on the other hand, may hurt your business credit and make future financing more expensive or harder to qualify for.
Bottom line
If you have less-than-ideal credit but are in need of equipment financing, there are still opportunities in which you can help fund your business needs. Some providers are willing to work with borrowers who can demonstrate other strengths to support their application. The best equipment financing options for bad credit should offer flexible credit score requirements, competitive rates and terms, and customized financing options. Be sure to consider all your options closely before signing on the dotted line.