Equipment Financing Guide: Best Lenders for Business Equipment in 2026
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Equipment financing lets businesses buy machinery, vehicles, computers, kitchen equipment, or any major tangible asset — and use that asset as the loan’s collateral. Because the lender’s risk is secured by something they can repossess, equipment loans approve faster, accept weaker credit, and price lower than unsecured business loans.
This guide ranks the best equipment financing lenders in 2026, explains the difference between loans and leases, and shows the math on when financing beats paying cash.
What Counts as “Equipment”
| Type | Examples |
|---|---|
| Vehicles | Trucks, vans, fleet, trailers |
| Construction | Excavators, loaders, cranes |
| Manufacturing | CNC machines, assembly lines |
| Restaurant | Ovens, refrigeration, POS systems |
| Medical | Imaging, dental chairs, lab equipment |
| Office / tech | Servers, computers, copiers |
| Agriculture | Tractors, harvesters, irrigation |
Top 7 Equipment Financing Lenders, 2026
| Lender | APR Range | Loan Amount | Term | Min. Time in Business |
|---|---|---|---|---|
| Crest Capital | 5.99% – 18% | $5K – $1M+ | 2 – 7 yrs | 2 years |
| Balboa Capital | 8% – 30% | $5K – $500K | 2 – 5 yrs | 1 year |
| National Funding | 8% – 30% | Up to $150K | 2 – 5 yrs | 6 months |
| Currency Capital | 6% – 25% | Up to $500K | Up to 6 yrs | 1 year |
| OnDeck | 27% – 99% | Up to $250K | 1 – 5 yrs | 1 year |
| US Bank | 4.99%+ | $5K – $1M+ | Up to 6 yrs | 2 years |
| SBA 504 | 6.5% – 7.5% | $5M+ | Up to 25 yrs | 2 years |
Affiliate disclosure: LoanBer earns commissions on lender applications via links in this article.
Equipment Loan vs Equipment Lease
| Feature | Equipment Loan | Equipment Lease |
|---|---|---|
| Ownership | You own | Lender owns |
| Down payment | 0% – 20% | Often $0 |
| Monthly payment | Higher | Lower |
| End of term | Asset is yours | Return, buy at FMV, or extend |
| Tax treatment | Depreciate + interest deduction | Lease payment deductible |
| Best for | Long-life assets you’ll use 5+ yrs | Tech that becomes obsolete fast |
When Equipment Financing Beats Paying Cash
Even if you have the cash, financing can win on:
- Cash flow preservation — keep cash for working capital, marketing, hiring.
- Tax benefits — Section 179 deduction often allows full first-year deduction up to $1.16M (2026 limit).
- Inflation hedge — repay tomorrow’s dollars with today’s purchasing power.
- Building business credit — equipment loan reports to business credit bureaus.
Cost Example: $80,000 Forklift, 5 Years
| Option | Down Payment | Monthly Payment | Total Cost |
|---|---|---|---|
| Cash | $80,000 | $0 | $80,000 |
| Equipment loan @ 8% | $0 | $1,623 | $97,366 |
| Equipment lease @ 9% | $0 | $1,475 | $88,500 + buyout |
| SBA 504 @ 6.5% | $8,000 | $1,407 | $76,420 + $8K down |
The cash option costs the least in interest but ties up working capital. The SBA 504 with 10% down is the cheapest financed option.
Section 179 + Bonus Depreciation in 2026
Section 179 lets businesses deduct up to $1.16 million in equipment purchases in the first year (2026 cap). Bonus depreciation phases at 60% in 2026.
Example: $80K forklift, 25% combined tax rate
- Section 179 deduction: $80,000
- Tax savings year 1: ~$20,000
Effective net cost of the equipment year 1: $60,000.
Equipment Financing Eligibility
| Requirement | Typical Minimum |
|---|---|
| Time in business | 6 months – 2 years |
| Annual revenue | $50K+ |
| Personal FICO | 600+ (650+ best) |
| Down payment | 0% – 20% |
| Equipment value | $5K minimum |
Recommended Equipment Lenders
💡 Best APRs: Crest Capital — APRs from 5.99%, accepts most equipment types.
💡 Best for new businesses: National Funding — 6 months in business minimum.
💡 Best for largest loans: SBA 504 via Live Oak Bank — up to $5M+, lowest fixed rates.
How to Apply
- Get an equipment quote from your supplier — lenders need exact specs and price.
- Choose financing or leasing based on equipment lifespan.
- Apply with 2–3 lenders in the same week to compare offers.
- Submit documents: equipment quote, last 6 months of business bank statements, year-to-date P&L, owner FICO consent.
- Approval and funding — most online equipment lenders fund in 1–7 days.
FAQ — Equipment Financing
Q: Can I finance used equipment? A: Yes — most lenders finance used equipment up to 10 years old. APRs may be slightly higher.
Q: How much down payment is required? A: $0 to 20%, with 10% being typical. SBA 504 requires 10% minimum.
Q: Does equipment financing affect my personal credit? A: Yes — most equipment lenders require a personal guarantee, and the loan reports on your personal credit.
Q: Can I get equipment financing as a startup? A: Yes — easier than other business loans because the equipment serves as collateral. Some lenders accept 6 months in business.
Q: What’s the difference between equipment financing and a working capital loan? A: Equipment financing must be used to buy specific equipment. Working capital loans can be used for anything but typically have higher APRs.
Related Reading on LoanBer
- Best Small Business Loans of 2026
- SBA Loans Explained
- Business Line of Credit vs Term Loan
- Best Working Capital Loans
- Business Loan Requirements
Bottom Line
Equipment financing is the right tool for any major tangible business asset. Crest Capital and US Bank lead on APR for established businesses, National Funding handles newer businesses, and SBA 504 wins for the largest equipment purchases at the lowest fixed rates. Combine financing with Section 179 to dramatically reduce the equipment’s effective first-year cost.
This article is for informational purposes only and is not financial advice.
By LoanBer Editorial · Updated May 9, 2026
- equipment financing
- equipment loans
- business loans