7 Best Equipment Loans for a Startup Business in 2023

Smarter Finance, a broker that works with a network of nearly 40 different lending partners, has the easiest qualification requirements, making it our pick as the best overall provider. It has no minimum required credit score, no minimum time in business, and no annual revenue requirement. It reviews applications on a case-by-case basis to give you the best chance of an approval.

A major benefit of working with a broker like Smarter Finance is that you can save time from having to apply separately to different lenders. You can get multiple loan options and also improve your chances of getting approved. While there are other brokers on our list, Smarter Finance specializes in equipment financing, so you may have a better chance of finding the loan best suited for your needs with this provider.

Smarter Finance’s rates start as low as 7%, and you can get up to $1 million in financing. However, keep in mind that the best terms are often reserved for the most well-qualified businesses. As such, startups may have more difficulty qualifying for the lowest rates available.

This provider can offer financing for a wide variety of equipment. This includes excavators, cranes, bulldozers, and trucks. While it has no set minimum credit score requirement, it mentioned that it can be particularly challenging to get an approval with a score below 600. In those instances, your business may need to show some strengths on your application, such as a large down payment or strong business finances.

To apply, you can complete an online application from the Smarter Finance website. It’s a process that should take just several minutes, and you can call the provider’s toll-free number if you have any questions.

Clarify Capital is another broker on our list. While it has one of the highest annual revenue requirements of $200,000, it also has over 75 lenders in its network and can offer some of the largest funding amounts. This makes it an excellent option if you’re looking to get multiple options or improve your chances of getting approved.

One potential downside with this provider is the fact that funding and closing for equipment financing is slower compared to other providers on our list. Clarify Capital states that you can expect 7 to 14 days to close a loan. However, it has consistently received positive reviews from customers, can issue approvals with minimal documentation requirements, and offers competitive rates and terms.

When you apply, you can work with a dedicated advisor who will walk you through the process and answer any questions you may have. Many of its clients use equipment financing for things like vehicles, computers, restaurant equipment, office supplies, and farming equipment.

To learn more or apply, you can visit the Clarify Capital website. Online applications can be completed in under two minutes, and you also have the option of calling the company with any questions.

Lendio is another broker with a large network of over 75 lenders. While it has some similarities to other brokers like Clarify Capital, Lendio’s qualification requirements do differ, and it could be a better fit for businesses with lower revenue but higher credit scores.

It offers financing options for nearly any industry. You can get financing for farm equipment, medical items, vehicles, gym equipment, and office furniture, among others. Financing options include loans and leases.

Applying with Lendio is a process that can be done online in under 15 minutes. After completing an initial set of questions to collect your basic business information, you’ll be given further instructions to upload documents. This must be done for your application to be considered complete.

A major benefit of working with Lendio is that its funding specialists will also review your application to determine the type of loan best suited for your needs. Choosing the wrong type of loan can be costly, and this provider can use its knowledge and expertise to provide you with options that you may not have been aware of before.

With the exception of providers that do not have a minimum credit score, eLease has the lowest requirement of 500. It is more willing and able to work with borrowers who have faced credit challenges in the past and also provides competitive rates, loan terms, and fast funding speeds.

It offers equipment financing for businesses in a number of different industries. This includes those who work in agriculture, breweries, construction, gyms, and restaurants.

Financing is available for up to $500,000, and you can elect to make payments for up to five years. Like some other providers, eLease reviews applications on a case-by-case basis. There are no minimum requirements for time in business or revenue, although you’ll need a down payment of at least 10% or more.

To learn more or apply, you can visit the eLease website. Applications can be completed in under five minutes. You can also call or submit a contact form with any questions.

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 has the ability to issue fast approvals and fundings largely due to the fact that it allows for an application-only process for certain loans. This process has significantly less 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.

SBG Funding offers equipment financing for up to seven years. All of the other providers in our guide only allow for up to five years, making it a good option to consider if you want to finance equipment for a longer period.

One drawback to this provider is that it has the highest requirement for annual revenue. To be considered for funding, your business must have $250,000 in annual income. However, other qualification requirements are easier to meet. The minimum credit score is 500, and businesses only need to have been in operation for six months.

SBG Funding states that it has an 85% approval rate for its loans. Rates start as low as 3.75%, which is an average monthly fixed percentage. However, keep in mind that the rate you get can be higher depending on the strength of your business credit and finances.

In addition to equipment financing, SBG Funding also offers term loans, business lines of credit, bridge capital, invoice financing, and Small Business Administration (SBA) 7(a) loans.

You can get a quote or submit an application online with no impact to your credit score. To streamline this process, you should have a copy of the last four months of business bank statements, a copy of your driver’s license, and a voided check showing your business bank account information.

National Business Capital is a good option if you have fair to average credit. This is because with a score of 650 or higher, qualification requirements for things like time in business and revenue are waived.

That being said, if you have a lower credit score, you’ll still be able to work with this provider if you have $120,000 in annual gross sales and six months’ time in business. Rates start at around 10%, and you can apply for as much as $5 million in funds.

National Business Capital is another broker on our list with over 75 lenders in its network. Although this means you’ll have more chances to get approved and see multiple loan options, it can mean that you won’t know the exact qualification requirements or loan terms until after you apply.

The provider has an online application that can be completed in several minutes. Once you have submitted required documentation, you can work with a dedicated personal advisor to find a loan best suited for your needs.

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.