Compare equipment finance options for your business

Get essential business equipment to keep your operations running smoothly.

For some businesses, a wide range of equipment and machinery is essential to ensure financial success. Whether it’s heavy machinery, specialized medical equipment or the latest IT devices, equipment finance from a lender can give you access to the funds you need to help your business acquire what it needs to continue running.

OnDeck Small Business Loans

OnDeck Small Business Loans

Among the largest online business lenders offering term loans and lines of credit at competitive fixed rates.

  • Minimum Amount: $5,000
  • Maximum Amount: $500,000
  • Loan Term: 3 to 36 months
  • Simple online application process with fast decisions
  • Dedicated loan specialists and loyalty benefits
  • Must have been in business for at least one year with annual revenue of $100,000+
  • Must have a personal credit score of 500+

    What is equipment finance and who offers it?

    Equipment finance is designed to give you access to the funds you need to purchase essential specialized equipment for your business. Whether you’re looking to purchase a forklift to move goods in your warehouse or new X-ray machines for your dental practice, equipment finance is on hand to help.

    A large number of lenders offer equipment finance, though there is a range of options borrowers can choose from. However, choosing the best approach for your business will depend on a range of factors including your financial situation, taxation needs and budget.

    Top business lenders you can compare

    Rates last updated November 18th, 2017
    Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
    SmartBiz SBA Loans
    Get funding for your small business with a government-backed loan and extended repayment terms.
    $30,000
    $5,000,000
    Must have personal credit score of 650 or higher; Must be a US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000 or more; No outstanding tax liens and no bankruptcies or foreclosures in the past 3 years
    Lendio Business Loan Marketplace
    Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
    $500
    $5,000,000
    Must be 18+ and operate a business in the US or Canada.
    LendingTree Business Loans
    Apply for multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you may need good personal credit and a well-documented business plan. Many business lenders will have a minimum business age and annual revenue you'll need to meet.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 6 months old and have monthly revenue of at least $15,000.
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is.
    None
    $2,000,000
    Your company must have been in business for at least 3 months or have monthly gross sales of at least $10,000.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $75,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $2,000
    $150,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.

    Compare up to 4 providers

    How does equipment finance actually work?

    Equipment finance gives you access to whatever important business equipment you need without having to pay for it upfront. Instead, you can receive the funds you need from a lender and then pay off your purchase over a set repayment period.

    In other words, you get all the benefits of ownership before you actually own the equipment. However, there are several different financing routes you can choose to go with, including taking out a loan or a finance lease. Read on to find out more about how different types of equipment finance work.
    Want to finance a business vehicle? Compare your options here

    How can I finance my business equipment purchase?

    • Commercial loan or equipment loan. This is probably the type of finance most borrowers are familiar with. As a secured loan, the asset you wish to buy will be used as security for the loan. This means that you own the item in question and can claim any interest charges and depreciation of the asset as tax deductions.
    • Finance lease A finance lease involves a lender purchasing the asset you want and then renting it out to a business for an agreed period. You can choose from flexible repayment terms to match your budget, while the lease payments you make are usually tax deductible.

    Compare equipment loans vs. leases

    How do I compare lenders that provide equipment finance?

    • Find out the interest rate. The interest rate offered will obviously influence how much you pay over the life of your loan, so look for one that offers a low rate of interest. You’ll also need to consider whether you want the security of a fixed rate or the possibility for saving that a variable rate offers.
    • Compare the fees and charges. Whenever you sign up for any financial product, it pays to make sure you’re aware of all the fees and charges attached to the deal. Read all product information closely to know if the finance option you choose attracts fees such as an establishment fee or an early repayment fee.
    • Establish if there are any taxation benefits. The range of equipment finance options are assessed differently when tax time rolls around. Each approach has its own potential tax benefits, so seek advice from your accountant to learn which one suits you best.
    • What are the loan terms? How long can you take to pay off your asset? Terms typically range from one to seven years, so look for equipment finance that offers a term suited to your financial situation.
    • Are there flexible repayment options? How often does each vehicle finance option let you make repayments? Look for a solution that lets you schedule your repayments in a way that suits your budget.

    The good and not-so-good of equipment finance

    Pros

    • Range of options. If you’re looking for equipment finance you can find options to suit a wide range of business needs and budgets.
    • Keep your business running. Equipment finance gives your business access to essential items that you might not be able to afford upfront, helping you stay competitive in the marketplace.
    • Flexible repayments. Equipment finance allows you to tailor a repayment schedule to suit your budget.

    Cons

    • Too many options. The range of finance options and potential tax benefits available can be tough to wrap your head around, so you may need help from your accountant to choose the best equipment finance solution.

    What should I consider avoiding when it comes to equipment finance?

    The main pitfall to avoid with equipment finance is getting into a financial agreement that you simply cannot afford to service. It’s important to consider how essential any equipment is before you commit to a purchase, as well as make sure you’re aware of your ability to make repayments on time.

    Another common issue is that some people can get confused by is the array of equipment finance options available. Seeking assistance from your accountant is one way to go to ensure you make the right choice.

    There may be an even better option for you

    Not sure if equipment financing is just right for your business? Learn how to understand your business financing needs and choose the right type of loan.

    Frequently asked questions

    The right finance option for you will be influenced by a whole range of factors, including how you do your accounting and your approach to taxation. If you can, seek help from an accountant to determine the best product for your needs.

    Read product documents closely to look for things like establishment fees, late payment fees and early repayment fees. It can also be a good idea to keep an eye out for ongoing monthly or annual fees.

    You have multiple options including manufacturer leases, online business loans and government programs. Read our article to learn more about tractor financing.

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