Rise Business Funding

Equipment Financing

Equipment financing lets you purchase or lease the machinery, vehicles, technology, and tools your business needs without paying the full cost upfront. The equipment itself serves as collateral, making approval easier and protecting your other business assets. Rise connects businesses with equipment loans from $5,000 to $500,000 with terms up to 7 years. Whether you need construction equipment, medical devices, restaurant appliances, or commercial vehicles, get the gear your business needs and pay for it over time as it generates revenue.

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Industrial equipment and commercial machinery for business operations

What Is Equipment Financing?

Equipment financing is a loan specifically designed to help businesses purchase machinery, vehicles, technology, and other equipment. The equipment you purchase serves as collateral for the loan, which means you typically don't need to pledge additional assets like real estate or inventory. If you default, the lender can repossess the equipment, but nothing else.

This self-collateralizing structure makes equipment financing easier to qualify for than unsecured products like a business line of credit or long-term loan. Loan amounts typically cover 80% to 100% of the equipment cost, with terms ranging from 1 to 7 years. Some lenders also finance soft costs like delivery, installation, and warranties.

Equipment financing is available for new and used equipment. Businesses in manufacturing, construction, transportation, healthcare, and food service rely heavily on equipment loans to acquire the assets that drive their operations. Use our business loan calculator to estimate your monthly payment.

Requirements to Qualify for Equipment Financing

Personal FICO Score

575+

Equipment loans are easier to qualify for because the equipment itself is collateral. Credit scores as low as 575 can qualify, though better scores unlock lower rates.

Monthly Revenue

$8,000+

Lenders verify that your revenue can support the monthly loan payment alongside your existing obligations.

Time in Business

6+ months

Lenders look for at least 6 months of operating history, and a longer track record can improve your terms.

Equipment Quote

Required from Vendor

You need a quote or invoice from an equipment dealer or vendor specifying the equipment, cost, and condition (new or used).

Not sure if you qualify? Equipment financing is one of the most accessible loan products because the equipment acts as its own security. Businesses across all industries are welcome, including construction firms financing excavators and dump trucks, restaurants upgrading kitchen equipment, and healthcare practices investing in medical devices.

How Equipment Financing Works

Choose Your Equipment

Identify the equipment your business needs, new or used, and obtain a quote from the vendor. Equipment financing covers machinery, vehicles, technology hardware, medical devices, restaurant appliances, construction equipment, and more.

Apply With Your Equipment Quote

Submit your application along with the equipment quote. The lender evaluates your business financials and the equipment value. Because the equipment is collateral, approval requirements are less strict than unsecured loans.

Lender Pays the Vendor Directly

Once approved, the lender pays the equipment vendor directly. You receive the equipment and begin using it immediately. Some lenders finance up to 100% of the cost, meaning no down payment is required.

Repay Over Time as Equipment Generates Revenue

You make fixed monthly payments over 1 to 7 years. The repayment timeline is designed to align with the equipment's useful life, so the asset pays for itself as you use it. Once the loan is paid off, you own the equipment outright.

See If You Qualify in Minutes

Find out how much equipment your business can finance. The application takes less than 5 minutes and won't impact your credit score.

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Pros & Cons of Equipment Financing

Advantages

Equipment Is the Collateral

No need to pledge real estate, inventory, or personal assets. The equipment you purchase secures the loan, reducing risk to your other business assets.

Easier Qualification

Because the loan is secured by the equipment, credit and revenue requirements are typically lower than unsecured products.

Preserve Working Capital

Pay for equipment over time rather than depleting your cash reserves. Keep capital available for operations, payroll, and growth.

Potential Tax Benefits

Section 179 of the IRS tax code may allow you to deduct the full purchase price of qualifying equipment in the year of purchase. Consult a tax professional for specifics.

Fixed Payments, No Surprises

Monthly payments are predictable and fixed for the life of the loan. Budget with confidence knowing exactly what you owe each month.

Disadvantages

Funds Can Only Be Used for Equipment

Unlike a business line of credit or short-term loan, equipment financing can only purchase the specific equipment named in the loan. You cannot use excess funds for payroll, marketing, or other expenses.

Equipment Depreciates

The equipment loses value over time while you are still paying for it. If the equipment becomes obsolete before the loan is paid off, you may owe more than the asset is worth.

Down Payment May Be Required

Some lenders require a 10% to 20% down payment, especially for used equipment or borrowers with lower credit scores. This upfront cost may strain cash flow for smaller businesses.

Alternatives to Equipment Financing

Business Line of Credit

  • Use funds for equipment or any other business purpose with no restrictions
  • Revolving access means you can draw again after repaying
  • No vendor quote required; purchase equipment when you're ready
  • Requires stronger credit profile than equipment-specific loans
  • Better for businesses that need flexibility beyond a single equipment purchase

SBA Loans

  • Government-backed loans with competitive rates and terms up to 25 years
  • SBA 504 loans are specifically designed for major equipment and real estate
  • Lower interest rates than most private equipment financing options
  • Longer approval timeline, typically 30 to 90 days
  • Best for established businesses with strong credit that can wait for funding

Long-Term Business Loan

  • Lump sum capital that can be used for equipment plus other investments
  • Repayment terms from 1 to 10 years with fixed monthly payments
  • No restriction on use, so you can fund equipment, expansion, and operations together
  • Requires stronger financial track record and credit history
  • Better when equipment is part of a larger growth investment

Frequently Asked Questions About

Equipment Financing

What is equipment financing?

Equipment financing is a loan specifically designed to help businesses purchase equipment where the equipment itself serves as collateral. It covers machinery, vehicles, technology, medical devices, restaurant appliances, construction equipment, and more.

What types of equipment can I finance?

Virtually any business equipment qualifies: construction machinery, commercial vehicles, medical devices, restaurant appliances, office technology, manufacturing equipment, agricultural machinery, and more. Both new and used equipment are eligible.

How much can I borrow with equipment financing?

Typically $5,000 to $500,000, with some lenders offering up to $1,000,000 or more for heavy equipment. The amount depends on the equipment cost, your monthly revenue, and your credit profile. Use our business loan calculator to estimate your monthly payment.

What credit score do I need for equipment financing?

Most equipment lenders accept credit scores of 575 and above. Because the equipment serves as collateral, qualification requirements are more lenient than unsecured financing products.

Do I need a down payment for equipment financing?

Not always. Some lenders offer 100% financing with no down payment. Others require 10% to 20% down, especially for used equipment or borrowers with lower credit scores. Rise works with lenders offering both options.

Can I finance used equipment?

Yes. Most equipment lenders finance both new and used equipment, though used equipment may require a higher down payment or shorter loan term depending on the equipment's age and condition.

What is the difference between equipment financing and equipment leasing?

With financing, you own the equipment once the loan is paid off. With leasing, you rent the equipment for a set period and return it at the end or purchase it at residual value. Financing builds equity in the asset; leasing keeps monthly costs lower but you do not build ownership.

How long are equipment loan terms?

Terms typically range from 1 to 7 years, depending on the equipment type and useful life. Heavy machinery may qualify for longer terms, while technology equipment may have shorter terms due to faster obsolescence.

Can startups get equipment financing?

Yes. Many equipment lenders work with businesses as young as 3 to 6 months old because the equipment itself provides security for the loan. Startups may need a larger down payment or personal guarantee.

What is Section 179 and how does it apply to equipment financing?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment in the year it is purchased, rather than depreciating it over several years. This can provide significant tax savings. Consult a tax professional for eligibility details.

Will the lender pay the equipment vendor directly?

In most cases, yes. The lender pays the equipment vendor directly once the loan is approved. You receive the equipment, and the vendor receives payment without you handling the funds yourself.

What happens if I default on an equipment loan?

The lender can repossess the equipment since it serves as collateral. However, your other business assets and personal assets are generally protected unless you signed a personal guarantee as part of the loan agreement.

Can I finance equipment from any vendor?

Most lenders are flexible about where you purchase equipment. You can buy from dealerships, private sellers, auctions, or online marketplaces. Simply provide the vendor quote with your application.

How fast can I get funded for equipment financing?

Equipment financing typically funds in 30 to 90 days, depending on the lender, the vendor and your documents. Once the loan documents are signed, the lender pays the vendor directly.

Is equipment financing right for my business?

If you need specific equipment and want to preserve your working capital, equipment financing is an excellent option. The equipment serves as its own collateral, keeping approval requirements accessible. If you need funds for multiple purposes beyond equipment, a business line of credit or long-term loan offers more flexibility.

Trusted by Small Businesses Across the USA

Typical Funding Time

30 to 90 Days

Funding Available

$5K to $500K

Businesses Funded

Across All 50 States

Equipment Financing in Your State

Available across all 50 states and Washington, D.C. Pick your state to see local programs, qualification specifics, and state-tailored FAQs.

Finance the Equipment Your Business Needs

Get the machinery, vehicles, and technology your business needs to grow. Apply in minutes, get approved fast, and start using your equipment while you pay for it over time.

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