6 Best Equipment Loans for a Startup Business in 2023

eLease is our best overall provider for startups looking for equipment financing because it has the best combination of low requirements—it has no minimums for time in business and revenue earned, and you can qualify with a credit score as low as 500. While other lenders in this guide also have no credit score requirements, you’ll have a better chance of getting approved at a more competitive rate with eLease as it specializes in lower credit score applications.

To improve your odds of approval, eLease evaluates each application on a case-by-case basis. Both your business finances and the type of equipment being purchased will be reviewed. Equipment that holds its value well can boost those odds.

eLease also offers equipment leasing options for a wide variety of industries. Leasing is available for agricultural equipment, breweries, computers, construction equipment, medical equipment, restaurants, trucks, and more. Financing amounts from $3,000 to $500,000 are available for qualified businesses, with payment terms up to five years.

Some of the downsides include the fact that good credit is typically needed to qualify for lower rates. Many applications may also require a down payment.

Submitting an application is quick, taking around 5 minutes. Approval and time to fund can take anywhere from one to three additional days. Applications can be submitted via eLease’s website, and you can call its toll-free number if you have any questions.

Smarter Finance USA is our top choice for startups with low credit scores. The company requires no minimum time in business, and although there is no cutoff for credit scores, those with scores below 600 may have more limited financing options.

The minimum down payment required by Smarter Finance USA ranges from a $399 documentation fee to as much as around 35%. Since applications are reviewed on a case-by-case basis, the amount of cash you’ll need for a down payment will depend on an overall review of your application. This can include a review of your business revenue, time in business, and the type of equipment being financed.

Smarter Finance USA has nearly 40 lenders in its network to help you get the best financing for your situation. Financing is available for a wide variety of needs, including heavy equipment and trucks. Loan amounts from $10,000 to $1 million are available, with repayment terms of up to 60 months.

Applications can be completed on the Smarter Finance USA website in as little as several minutes. If you have any questions, you can contact the toll-free number on the website.

National Business Capital is a good choice for equipment loans if you are a startup with average or better credit. With a credit score of 650, there is no minimum time in business requirement, and minimum revenue requirements are waived. Even with a score less than 650, the minimum time in business and revenue requirements go up to just six months and $10,000 per month, respectively. This flexibility makes the lender particularly startup-friendly.

As a business owner, you can apply for loans anywhere from $10,000 to $5 million. Rates will run from 10% to 60%—although with average credit, you can expect to see rates toward the lower end of that range. It’s possible to qualify with no down payment, but that will depend on your specific loan application, business finances, and other qualifications.

In addition to equipment financing, National Business Capital also has Small Business Administration (SBA) loans, business lines of credit, and small business loans. If an equipment loan is not right for you, you can consider the other types of financing it offers.

Its application process can be completed quickly. Applications take just five minutes, with funding occurring within one to two business days.

CIT won our vote as the best equipment loan provider for low rates. Although other lenders may offer slightly lower starting rates, it has no requirements for time in business or revenue earned, a combination that increases the chance that a startup can actually qualify for its low rates.

It provides financing of up to $1 million, and you can choose to make payments over a period of up to six years. Payment intervals are also flexible, with options for monthly, seasonal, and deferred payment schedules.

To be eligible for financing, you’ll typically need to have a credit score of 620 or higher and a down payment of 20%. However, those requirements can vary depending on your specific business and the equipment being financed. If you can’t qualify for equipment financing, CIT also has other lending products, such as SBA and small business loans.

To get started, you can submit an application on CIT’s website. The process can be completed in several minutes, and you could receive a decision within 24 hours.

Although other lenders in this guide also provide funding up to $5 million, First Capital Business Finance was our pick for the best equipment loan for large amounts of financing because it caters to startups with no requirements for revenue, time in business, or minimum credit score. It can also issue funds quickly, with loan approval and funding times as fast as 24 hours.

You can apply for loan amounts as low as $5,000, and loans can be repaid over a period of up to six years on a monthly basis. To be eligible for financing, you may need to provide at least a 10% down payment.

You can get equipment financing for a wide variety of industries, including construction, restaurants, carpet cleaning, waste management, welding, plumbing, landscaping, and auto shops. If an equipment loan is not right for you, or if you’re unable to get approved for financing, the lender also offers other types of products. You can consider applying for commercial title loans, unsecured business loans, or invoice factoring.

For any questions or to submit an application, you can call First Capital Business Finance using its toll-free number.

With financing for up to 10 years available, we’ve chosen SBG Funding as the best equipment loan company for long-term financing—no other company in this guide has terms for that length of time. It is also friendly to startups, requiring just six months of being in business to be eligible for financing.

As an added perk, long-term financing is also available to those with bad credit—you’ll just need a credit score of 500 to qualify for financing. However, businesses will need to have at least $10,000 in monthly revenue.

As a business owner, you could apply for up to $5 million in funding. 100% financing is also available if you want to maintain your cash reserves. Depending on your business qualifications, you could qualify for rates as low as 3.75%.

In addition to equipment loans, SBG Funding offers SBA loans, invoice financing, business lines of credit, and small business term loans.

You can visit the company’s website for more information or to submit an application.