The best equipment loans for a startup business will be able to issue funding to companies with less than two years’ time in business. Most lenders should also have low revenue requirements for startups that have not had enough time to build high streams of income. The best equipment loans will also have a combination of good customer service, competitive rates, flexible loan terms, and low credit score requirements.
Here are our picks for the best equipment loans for startups:
- Smarter Finance USA: Best overall for flexible requirements, rates, and customer service
- Lendio: Best for multiple loan options
- National Business Capital: Best for businesses with good credit or high revenue
- eLease: Best for newer businesses seeking smaller financing amounts
- SBG Funding: Best for high-revenue businesses seeking custom loan terms
- Creditfy: Best for long-term equipment financing options
- 1West: Best for simple equipment financing needs
- Balboa Capital: Best for fast approval and funding speeds
Best Equipment Loans for Startup Businesses At a Glance
Maximum Loan Amount | Estimated Starting Annual Percentage Rate (APR) | Maximum Loan Term | Minimum Credit Score | Annual Revenue Required | Time in Business Required | |
|---|---|---|---|---|---|---|
 | $1 million | 7% | 5 years | None | None | None |
 | $5 million | 7.5% | 5 years | 520 | $50,000 | 0 to 12 months |
 | $5 million, can vary | Varies | 5 years | |||
 | $500,000 | 8% | 5 years | 500 | None | None |
| $5 million | 3.75% average monthly rate | 7 years | 500 | $250,000 | 6 months |
 | $5 million | 6.49% | 7 years | None | Not stated | None |
 | $5 million | 7% | 5 years | 550 | $120,000 | 12 months |
 | $500,000 | 8% | 5 years | 620 | $100,000 | 12 months |
To boost your approval odds, see our tips in our guide on how to get a small business loan. There, you’ll find information on what lenders look for at each stage of the loan process and how best to present yourself to get the best rates available.
Smarter Finance USA: Best Overall for Flexible Requirements, Rates, and Customer Service
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Rates & Terms | |
Estimated Starting APR | 7% to 20%-plus |
Loan Amount | $10,000 to $1 million |
Repayment Term | 2 to 5 years |
Repayment Schedule | Weekly, monthly, seasonal, and deferred |
Funding Speed | 1 to 4 days |
Qualifications | |
Credit Score | None, but 600 is recommended |
Time in Business | None |
Annual Revenue | None |
Down Payment | 0% to 35% |
Why We Like Smarter Finance USA
Smarter Finance USA has some of the most flexible qualification requirements in our guide, and it reviews each application on a case-by-case basis to improve your approval odds. It also has a network of nearly 40 lenders, giving you the possibility of being able to choose from multiple financing options.
It deals heavily with vehicle financing. This includes trucks and heavy equipment such as excavators, cranes, backhoes, and bulldozers. It offers equipment financing for a wide variety of industries, including healthcare practices, food service, and construction.
One item to note is that while there is no minimum credit score requirement, you may find it particularly difficult to get approved with a score below 600. Down payment requirements can also vary depending on the strength of your business finances.
To learn more or to apply, visit the Smarter Finance USA website.
Lendio: Best for Multiple Loan Options
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Rates & Terms | |
Estimated Starting APR | 7.5% |
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 | 0 to 12 months |
Annual Revenue | $50,000 |
Down Payment | As low as 0% |
Why We Like Lendio
Lendio has a network of over 75 lenders. That’s one of the largest on our list, making it an excellent choice if you want multiple options to choose from. This can be done with just a single loan application, saving you time and money.
The company offers equipment financing for nearly any business purpose. Examples of allowable uses include vehicles, machinery, restaurant appliances, office furniture, and medical equipment.
When you work with Lendio, you’ll be paired with a lending specialist who will learn about your business needs, goals, and qualifications to match you with a lender within its network. You’ll then be presented with options to choose from.
You can apply online from the Lendio website. The application process can be completed in under 15 minutes, after which you may be notified via email or phone of any additional requirements. If you are asked for additional items, provide them in a timely manner as your application won’t be considered complete until this is done.
National Business Capital: Best for Businesses With Good Credit or High Revenue
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Rates & Terms | |
Estimated Starting APR | Varies |
Loan Amount | $10,000 to $5 million, but can vary |
Repayment Term | 1 to 5 years |
Repayment Schedule | Monthly |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | 650; waived with 1 year time in business and $500,000 annual revenue |
Time in Business | 12 months; may be waived with a credit score above 650 |
Annual Revenue | $500,000; may be waived with a credit score above 650 |
Down Payment | Varies |
Why We Like National Business Capital
Like Lendio, National Business Capital is another loan broker on our list with over 75 lenders in its network. However, it also carries the highest annual revenue requirement, which is why we did not select it as the best for multiple loan options.
A unique aspect of National Business Capital is the fact that certain requirements can be waived depending on the combination of your qualification requirements. For instance, it’s possible to qualify with no minimum credit score if you have strong business finances and sufficient time in business. Similarly, if you have good credit, you can qualify as a newer company with lower revenue earnings.
Keep in mind, however, that meeting the minimum listed requirements does not guarantee approval. National Business Capital commonly works with companies in the following industries:
- Construction
- Ecommerce
- Professional services
- Manufacturing
- Retail
- Restaurants
- Medical
- Transportation
- Cannabis
The broker has an online application that can be completed in several minutes. Once you have submitted the required documentation, you can work with a dedicated personal advisor to find a loan best suited to your needs.
eLease: Best for Newer Businesses Seeking Smaller Financing Amounts
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Rates & Terms | |
Estimated Starting APR | 8% and up |
Loan Amount | $3,000 to $500,000 |
Repayment Term | Up to 5 years |
Repayment Schedule | Monthly |
Funding Speed | Typically as fast as 48 hours from time of application |
Qualifications | |
Credit Score | 500, but can vary |
Time in Business | None |
Annual Revenue | None |
Down Payment | 10% is recommended |
Why We Like eLease
eLease has one of the smallest funding amounts available but still made our roundup because of its competitive rates and flexible qualification requirements. With no minimum time in business required, this can be a good option for a newer company.
It can offer funding for a wide range of industries. You can find a full list on its website, but some examples include
- Agricultural equipment
- Brewery equipment
- Computer equipment
- Construction equipment
- Dry cleaning equipment
- Fitness equipment
- Medical equipment
- Machinery
- Network equipment
- Restaurant equipment
eLease does not publicly disclose its qualification requirements as they can vary on a case-by-case basis. Specific eligibility criteria will depend on your specific company’s credit, business finances, and down payment amounts. In many cases, a personal guarantee will also be required.
To apply, learn more, or contact the company, visit the eLease website. There, you’ll find the company’s phone number and online link to submit an application in under five minutes.
SBG Funding: Best for High-revenue Businesses Seeking Custom Loan Terms
 | |
Rates & Terms | |
Estimated Starting APR | 3.75% average monthly rate |
Loan Amount | Up to $5 million |
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 Revenue | $250,000 |
Down Payment | Not stated |
Why We Like SBG Funding
SBG Funding has one of the higher revenue requirements listed in our guide. However, if you’re eligible, your business can get the benefit of loan terms tailored to your specific needs and goals.
Other requirements include a minimum of six months’ time in business and a down payment amount that will vary based on an overall review of your credit and business finances. However, SBG Funding states that it has an approval rate of 85%, so your approval odds are good as long as you meet the minimum criteria above.
The company’s rates are reflected as an average monthly fixed percentage. This means that the rate you get could be different depending on your business qualifications. As a loan broker, the rate you get with SBG Funding could also vary based on the lender you’re matched with.
SBG Funding does not perform a hard credit pull at any point in the approval process, so you can submit an application to see what your options are without any negative impact on your credit score. Applications can be submitted from the SBG Funding website in under 10 minutes.
Creditfy: Best for Long-term Equipment Financing Options
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Rates & Terms | |
Estimated Starting APR | 6.49% |
Loan Amount | Up to $5 million |
Repayment Term | 3 to 7 years |
Repayment Schedule | Monthly |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | None |
Time in Business | None |
Annual Revenue | Not stated |
Down Payment | As low as 0% |
Why We Like Creditfy
If you’re looking for longer-term financing, Creditfy is a good option. While SBG Funding offers the same repayment period of up to seven years, Creditfy can offer lower rates along with more flexible qualification requirements.
It can offer both financing and leasing options on new and used equipment. Soft costs and service fees can be financed and may include things like delivery expenses, installation, maintenance, warranty, taxes, and other costs. Eligible industries include
- Agriculture
- Automotive
- Construction
- Energy
- Fitness
- Hospitality
- Industrial
- Manufacturing
- Media
- Medical
- Technology
- Transportation and waste management
Creditfy has a loan approval rate of 90%. It has exclusive partnerships with some lenders and also requires its lending representatives to have a minimum of two years of industry experience to best match you with a suitable lender.
You can visit the Creditfy website to learn more or to apply.
1West: Best for Simple Equipment Financing Needs
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Rates & Terms | |
Estimated Starting APR | 7% |
Loan Amount | $10,000 to $5 million |
Repayment Term | 5 to 60 months |
Repayment Schedule | Monthly |
Funding Speed | 1 week |
Qualifications | |
Credit Score | 550 |
Time in Business | 12 months |
Annual Revenue | $120,000 |
Down Payment | Varies |
Why We Like 1West
1West offers financing on nearly any type of used or new business equipment. It has a network of approximately 50 lenders and makes use of its Automated Business Lending Engine (ABLE) to provide financing options at any time of day, without the need to speak with a loan officer.
For that reason, we’ve selected it as the best provider for simple equipment financing needs. With that being said, you do still have the option of working with a loan specialist if you need additional assistance.
One downside with 1West is that its funding speed of 1 week is longer than many of the other providers on our list. For complex scenarios, that funding speed may be even longer. You can check the status of your application through 1West’s online portal, although it can take up to two business days for updates to occur.
You can submit an online application from the 1West website. To expedite the process, you can prepare commonly requested documents, which include the following:
- Three months of business bank statements
- Government-issued identification
- Voided check for your business bank account
Balboa Capital: Best for Fast Approval and Funding Speeds
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Rates & Terms | |
Estimated Starting APR | 8% to 20%-plus |
Loan Amount | Up to $500,000 |
Repayment Term | 24 to 60 months |
Repayment Schedule | Monthly |
Funding Speed | As fast as the same day |
Qualifications | |
Credit Score | 620 |
Time in Business | 12 months |
Annual Revenue | $100,000 |
Down Payment | None |
Why We Like Balboa Capital
Balboa Capital can offer some of the fastest approval and funding speeds out of the providers listed here. Applications submitted during regular business hours can receive approvals in as little as one hour, along with same-day funding.
The lender can issue fast approvals and funding largely due to the fact that it allows for an application-only process for certain loans. This process has significantly fewer documentation requirements. Loans for hard collateral can get this streamlined process for up to $500,000, while soft collateral can get it for up to $350,000.
To qualify for financing, you’ll need to have at least 12 months’ time in business and a credit score of 620—those are some of the highest on our list. You’ll also need at least $100,000 in annual income. However, keep in mind that meeting these requirements does not guarantee a loan approval. Additionally, this lender’s lowest rates will often require a business to exceed the minimum eligibility criteria.
To begin the process, you can get a free, no-obligation quote by completing a form on the provider’s website.
How We Chose the Best Equipment Loans for Startups
The best equipment loans for startup businesses were selected based on the following criteria:
- Interest rates, fees, and estimated APRs
- Qualification requirements
- Minimum down payment
- Loan amount
- Loan terms
- Application, approval, and funding speeds
- Customer reviews and ratings
Alternatives to Equipment Loans
If you are a startup, your equipment loan may come with higher rates and fees. If you are looking for a more cost-effective solution or having trouble getting a loan as a new company, here are some alternatives to consider:
- Equipment lease: This allows you to rent and use equipment for the term of the lease. Once it expires, you must return the equipment to the vendor, although some leases provide you with the option to purchase it. Read our guide on types of equipment financing to learn more about the differences between a loan and a lease.
- Small business line of credit: This can be a good option if you’re having trouble getting approved or do not have the down payment for an equipment loan. Since you can draw funds on an as-needed basis, it can also be used to cover unexpected expenses. See our roundup of the best small business lines of credit.
- SBA loan: SBA loans can offer low rates for businesses with good credit and strong finances. You can consider our top-recommended SBA lenders.
- Rollover for business startups (ROBS): A ROBS allows you to access your retirement account tax- and penalty-free. It’s not a loan, so you won’t have monthly payments or interest expenses. You’ll typically need at least $50,000, and we recommend choosing a company from our list of the leading ROBS providers to walk you through the process.
Frequently Asked Questions (FAQs)
The best loan is one that you’re qualified for and will help you achieve your business goals. You’ll also want to consider the costs associated with getting the loan, such as rates and fees. Loan terms should also be reviewed, such as the repayment term, monthly payment amount, and required down payment.
With an equipment loan, you are purchasing the equipment and get to retain ownership and possession of it once the loan is paid off. With a lease, you are temporarily renting the equipment and must return it once the lease expires. However, some leases do provide you with the option to purchase the equipment.
An equipment loan can be used to finance equipment necessary to run a business. Some examples can include vehicles, furniture, machinery, and computers. You can read our guide on equipment loans to learn more about what they are and who they’re right for.
Bottom Line
While getting an equipment loan as a startup business can be more difficult, it is possible. We’ve chosen lenders that offer competitive rates, excellent customer service, and flexible loan terms. Keep in mind, however, that a lender’s lowest advertised rates may not be attainable for newer businesses as you’ll often need to exceed the minimum stated qualification requirements to get the best rates.
