5 Best Companies for Equipment Financing With Bad Credit
Tom has 15 years of experience helping small businesses evaluate financing and banking options. He shares this expertise in Fit Small Business’s financing and banking content.
This article is part of a larger series on Business Financing.
Equipment financing for those with bad credit can be a challenge to obtain, but lease and loan options do exist. Borrowers can work with a cosigner or make a larger down payment on an equipment lease or loan to improve their chances of financing approval.
In evaluating the best equipment financing options for borrowers with bad credit, we looked at lender minimum requirements, cost of borrowing, terms, application process, customer service, and funding speed. Our primary considerations were the type of financing available for borrowers and lender minimum requirements. We excluded companies with strict guidelines.
Lender | Best for |
|---|---|
Overall rates and terms | |
Smaller businesses | |
Higher-risk equipment | |
Startups | |
Businesses looking for longer terms |
National Business Capital: Best Overall Rates and Terms
 | |||
Maximum Loan Amount | $5 million | Payment Frequency | Monthly |
Minimum Credit Score | None | Repayment Term | Up to 5 years |
Annual Percentage Rate (APR) Range | 8% to 25% | Annual Revenue | $120,000 |
Down Payment | 20%+ | Time in Business | 6 months |
Why We Like National Business Capital: National Business Capital will consider any business, regardless of credit score, provided the business has at least 6 months of continuous operation and generates $120,000 in sales annually. It will provide equipment financing up to $5 million, either through loan or lease, and finance out to 5 years. Your rate is highly dependent on your credit score, and a lower credit score will likely mean a higher cost of borrowing or leasing.
Smarter Finance USA: Best Option for Smaller Businesses
 | |||
Maximum Loan Amount | $250,000 | Payment Frequency | Weekly or monthly |
Minimum Credit Score | 550 | Repayment Term | Up to 7 years |
APR Range | 6% to 30% | Annual Revenue | N/A |
Down Payment | 20% to 50% | Time in Business | No minimum |
Why We Like Smarter Finance USA: Borrowers who need between $2,500 to $250,000 of financing and have at least a 550 credit score should consider Smarter Finance USA. Its maximum makes it a good fit for smaller businesses. Down payment requirements may reach as high as 50%, depending on your credit and business history; however, Smarter Finance USA will provide financing to startups.
Bluevine: Best for Higher-risk Equipment
 | |||
Maximum Loan Amount | $250,000 | Payment Frequency | Weekly |
Minimum Credit Score | 625 | Repayment Term | Up to 12 months |
APR Range | 5% to 30% | Annual Revenue | $120,000 |
Down Payment | None | Time in Business | 6 months |
Why We Like Bluevine: As opposed to placing a lien on equipment, which is common in equipment financing, Bluevine places a blanket Uniform Commercial Code (UCC) lien on businesses it lends to. This provides a financing option to those businesses who may work in higher-risk industries or have equipment with a short use life. Bluevine will provide up to $250,000 in funding, with weekly repayments. Note that any financing will need to be repaid within a year.
eLease: Best for Startups With Bad Credit
 | |||
Maximum Loan Amount | $500,000 | Payment Frequency | Monthly |
Minimum Credit Score | 500 | Repayment Term | Up to 60 months |
APR Range | 6% to 35% | Annual Revenue | None |
Down Payment | 10% to 50% | Time in Business | None |
Why We Like eLease: eLease offers equipment leases up to $500,000, with terms of up to 5 years. eLease is a viable option for businesses with bad credit or minimal cash, given that there is no minimum revenue requirement and business owners only need a credit score of 500 to qualify. Each application is reviewed on a case-by-case basis.
Crestmont Capital: Best for Businesses Seeking Longer Repayment Terms
 | |||
Maximum Loan Amount | $2 million | Payment Frequency | Monthly |
Minimum Credit Score | 500 | Repayment Term | Up to 10 years |
APR Range | 6% to 20% | Annual Revenue | $100,000 |
Down Payment | 10% to 50% | Time in Business | None |
Why We Like Crestmont Capital: Crestmont Capital provides equipment loans and leases of up to $2 million and will offer financing to those with bad credit. While the majority of its equipment loans and leases have a term of up to 5 years, it will occasionally finance up to 10 years if the equipment has a long effective use life.
Bottom Line
Any of the five lenders we have mentioned are good choices for those with bad credit who are seeking equipment financing. If they have low credit scores, business owners may have to contend with higher interest rates and additional fees to borrow. However, these lenders will work to accommodate you and provide a lifeline to getting equipment financing.
