7 Best Companies for Equipment Financing With Bad Credit for 2023

We chose Smarter Finance USA as our best overall company for equipment financing with bad credit. Unlike some other companies on our list, it has no hard credit score, time in business, and revenue requirements. Applications are reviewed on a case-by-case basis, and your odds of getting approved will depend on your specific business needs and finances’ strength.

Smarter Finance USA can seek financing options from its network of nearly 40 lenders. With so many, you could see a wide range of rates, but they’ll generally run from 7% to 20%. With bad credit, be aware that you may not qualify for the lowest rates advertised.

Equipment financing is available for several different industries and equipment, including truck financing and heavy equipment, such as cranes, backhoes, and bulldozers. Loan amounts start at $10,000 and go up to $1 million and can be financed for up to 60 months.

You can submit an application online through the Smarter Finance USA website or by calling the company’s toll-free number.

With no minimum time in business requirement, eLease is our best company for startups. It also has a low credit score requirement of 500, with no hard requirements for how much revenue your company must generate.

Applications are reviewed on a case-by-case basis, which improves your chances of getting approved. It also means you could see a wide range of rates and down payment requirements. Rates for well-qualified businesses can start at around 8%. With bad credit, rates generally are around 15% or higher. You may also need to have a down payment of 10% or more, depending on the other aspects of your business, such as revenue earned, time in business, and credit score.

eLease offers leasing on equipment used in agriculture, construction, dry cleaning, restaurants, woodworking, and more. If you’re interested in applying, you can complete its online application or call its toll-free number with any questions you have. Visit eLease’s website to apply.

If you need funds quickly, Balboa Capital is a good option and can likely get you the funds you need quicker than the other companies in this guide. It has a short application process, can issue same-day approvals, and can fund loans in as soon as 24 hours. To qualify, you’ll need a minimum credit score of 620, at least one year in business, and annual revenue of $100,000.

Although you can qualify for financing with no down payment, you may need to place a security deposit, typically calculated as two months of payments. Balboa Capital offers financing up to $500,000 with terms of up to 60 months. Interest rates tend to range from 5% to 20%, although businesses with bad credit aren’t likely to qualify for the lowest rates available.

Submitting a loan application won’t hurt your credit score. That’s because Balboa Capital conducts a soft credit pull only and will let you know if that is insufficient. Even if you don’t qualify, your credit score won’t have been impacted, and you’ll have only lost the time spent applying for the loan.

You can start the application process on the company’s website or by calling the toll-free number. Visit Balboa Capital’s website for more information.

Few companies offer terms up to 10 years, making SBG Funding our pick as the best company for long-term equipment financing. You will need a minimum credit score of 500, with six months of running your business and at least $10,000 in monthly revenue.

Paperwork requirements to qualify for a loan are minimal. Other than a copy of your driver’s license and a voided check for your bank account, you should typically only need to provide three months of bank statements and at least one invoice for the equipment being purchased.

Although the company advertises rates starting at 3.75%, you may not qualify for its best rates with bad credit. Loan amounts up to $5 million are available.

If equipment financing isn’t right for you, SBG Funding has other types of financing available. Your options include SBA loans, invoice financing, bridge capital, small business term loans, and business lines of credit.

You can receive a decision as quickly as 24 hours after applying. To apply, visit SBG Funding’s website.

National Funding only offers financing up to $150,000, making it the best lender for smaller financing needs. To be eligible, you’ll need to have a credit score of at least 575, with two years in business and $250,000 in annual revenue.

Down payment amounts can vary based on your specific needs and business finances, although the company does provide options for 100% financing. Its rates start at 4.99%, but with bad credit, you may not qualify for the best rates. Equipment can be financed for as long as five years.

In addition to offering equipment loans, National Funding has options for equipment leasing, short-term business loans, working capital loans, and small business loans.

You can begin the process by submitting an application on National Funding’s website or calling the toll-free number. Once you speak with one of the company’s funding specialists, you can expect to receive a decision on the loan in as soon as 24 hours. Visit the website for more information on how to apply.

With equipment financing up to $5 million, First Capital Business Finance is our pick as the best company for large financing needs. While other companies offer high financing amounts, First Capital also has no set minimums for credit score, business revenue, or time in business. With bad credit, you may be required to have at least a 10% down payment.

Loan amounts from $5,000 to $5 million are available, and you can select a payment term as long as six years. First Capital Business Finance offers financing for a wide range of equipment, including trucks, carpet cleaning equipment, commercial generators, and landscaping. It also has invoice factoring and working capital loans.

Borrowers with bad credit can expect rates anywhere from 19% to 35%. The rate you qualify for will depend on several items, such as your down payment amount, time in business, and business revenue.

If you apply early enough in the day, it’s possible to get a same-day approval on your loan. To apply, visit First Capital Business Finance’s website or call the company’s toll-free number.