Equipment Financing: Loans, Leases & Qualification Requirements
Equipment financing lets you acquire machinery, vehicles, and technology with the equipment itself as collateral—making it easier to qualify than unsecured loans.
Michael Chen, CFA
Business Finance Expert
Updated February 2, 2026 • 10 min read
Equipment Financing at a Glance
Loan Amounts
$5,000 - $5 million+
Terms
1-7 years (matches equipment life)
Down Payment
0-20% typical
Credit Score
600+ (varies by lender)
What Can Be Financed?
Vehicles & Fleet
Trucks, vans, company cars, trailers, forklifts
Machinery
Manufacturing, construction, printing equipment
Technology
Computers, servers, POS systems, software
Fixtures
Restaurant equipment, medical devices, office furniture
Lease vs. Buy: Which is Right?
| Factor | Loan (Buy) | Lease |
|---|---|---|
| Ownership | You own it | Return or buyout |
| Down Payment | Usually required | Often $0 |
| Monthly Cost | Higher | Lower |
| Tax Benefits | Depreciation + interest | Full payment deduction |
| Best For | Long-term equipment | Tech that becomes obsolete |
Qualification Requirements
- Time in Business: 1+ year preferred (some accept 6 months)
- Credit Score: 600+ personal, 50+ Paydex
- Revenue: $50K+ annual for most lenders
- Equipment Quote: Vendor invoice or purchase agreement