8 Best Equipment Loans for Bad Credit in 2023

As its name might imply, eLease offers financing options for businesses wanting to lease equipment. Its minimum credit score requirement is 500, and although some other providers on our list have no minimum requirement at all, eLease is more willing to work with borrowers who have had credit challenges in the past.

Like many other providers in this guide, eLease has almost no restrictions on industries it will finance. Examples include agricultural equipment, computers, furniture, manufacturing items, office equipment, networking equipment, and construction.

Estimated APRs will start at around 8% for highly qualified businesses. With bad credit, you should expect rates to start around 15%. There are no requirements for revenue or time in business, but demonstrating strengths in these areas can help you get a lower rate.

You can visit eLease’s website to learn more or call the company’s toll-free number if you have any questions. You can also complete an online application to begin the process.

National Funding offers up to $150,000 in equipment financing. While that’s the lowest amount listed in our guide, this provider has competitive rates and terms, and it can give you a high level of service. For those reasons, we selected it as the best option for smaller financing needs or businesses that value excellent customer service.

To be eligible, you’ll need a minimum credit score of 600. You’ll also need to have been in business for at least two years and have annual revenue of $250,000. In general, most of the clients National Funding works with are businesses that are already doing well financially.

One benefit of getting a loan with this provider is that it offers early payment discounts. Equipment financing borrowers can get a 6% discount on the remaining balance when paying off the loan early.

To apply, you can complete an online application. If additional documents are needed, you’ll be given more detailed instructions. Keep in mind that your application is not considered complete until that step is done. Upon receiving a full application, the provider will pair you with a funding specialist who will review your application and learn more about your business needs and goals to match you with a loan best suited for your circumstances.

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.

With loan amounts up to $5 million, First Capital Business Finance is our pick as the best provider for businesses with larger equipment financing needs. While there are other providers on our list that offer the same amount, First Capital Business Finance has easier qualification requirements.

To be eligible for financing, you’ll need a minimum credit score of 500. There are no requirements for time in business or business revenue, and it’s possible to qualify with no down payment. With that said, applications are evaluated on a case-by-case basis, so demonstrating certain strengths in your application can significantly improve your odds of landing an approval.

With First Capital Business Finance, you’ll be able to finance almost any equipment that is related to your business in almost any industry. To learn more or apply, you can visit the provider’s website.

Smarter Finance USA has no minimum requirements for credit score, time in business, or annual revenue. It is a broker with over 37 lenders in its network and evaluates each loan application on a case-by-case basis to improve your chances of landing an approval. For these reasons, we selected it as the best provider for those seeking flexible qualification requirements.

It offers equipment financing to a wide variety of industries. Some examples include healthcare, food service, and companies needing vehicle loans or leasing options. Rates can start as low as around 7%, but keep in mind that the best rates require businesses to be highly qualified. With bad credit, it is unlikely you’ll get the lowest available rates.

Although this broker has no minimum credit score requirement, it can be especially difficult to get approved if your score is below 600. To improve your chances of being approved, you should have strong compensating factors to your loan application. Some examples can include a large down payment or a track record of strong business finances.

To apply, you can visit the Smarter Finance website and submit an online application. This is something that should take no more than several minutes, after which you can work with a lending team member to match you with a loan. Getting funded typically takes two to four days from the time you apply.

Clarify Capital is a broker with over 75 lenders in its network. Although there are other providers, such as National Business Capital with a number of lending partners, Clarify Capital has a lower credit score requirement, making it optimal if you want multiple loan options.

With Clarify Capital, you can qualify with a credit score of 550 or higher. You’ll also need 12 months’ time in business and annual revenue of $200,000. Rates start as low as 6% but keep in mind that the lowest rates often require excellent credit and business finances.

If approved for funding, you can use the loan proceeds for virtually any business-related purpose. This includes vehicles, machinery, construction equipment, office supplies, furniture, computers, and more.

One potential downside with Clarify Capital is that it typically takes between seven and 14 days to close. While this can be longer than the other options in our guide, we still strongly recommend this broker because of its competitive rates, terms, and consistently high customer reviews and ratings. To learn more or to apply, you can visit the Clarify Capital website.

SBG Funding has repayment terms of up to seven years—that’s longer than any other option listed here, making it a good choice for businesses seeking lower monthly payments. Additionally, it has a low credit score requirement of 500.

One downside is its high annual revenue requirement. Earlier this year, it required just $120,000 annually to qualify. However, it recently increased it to a minimum of $250,000.

While it may be difficult for some businesses to meet that criteria, SBG Funding states that it has an approval rate of 85% for those that qualify. Revenue is typically verified by looking at the last four months of your business bank statements. You’ll also need to provide a copy of your driver’s license and a voided check for your business bank account as part of the application process.

If you’re unsure if you qualify, you can submit an online application in just several minutes. Applying does not impact your credit score, and it’s possible to get a loan decision within 48 hours.

National Business Capital is a good option if your business has strong revenue and cash flow. This is because, with annual revenue of $120,000 or more, it’s possible to get a loan with no minimum credit score requirement.

This company can provide financing for pretty much any type of business. This includes those working in fields such as medical, software, manufacturing, food services, and automotive.

Another benefit of working with National Business Capital is that it is also a broker with over 75 lenders in its network. This means you’ll have more loan options and a greater likelihood of getting approved. Rates can start as low as around 10% for the most well-qualified businesses. With bad credit, however, it will be unlikely you’ll qualify for these low rates.

You can apply online from the National Business Capital website in under one minute. Required financial documents can vary on a case-by-case basis, but it’s possible to get approved with only business bank statements.

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 with 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, type of equipment being financed, down payment amount, and business revenue. With so many variables, shop multiple lenders to ensure you’re getting a competitive rate.