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Commercial Equipment Financing
In short: Commercial equipment financing is how a business funds equipment it uses to operate, through a loan, a lease or another structured agreement. The equipment usually secures the obligation. Providers weigh the business, the owner, the equipment and the down payment together. Approval, rates, terms and funding depend on the lender and the borrower's qualifications.
What this page covers, and where to go next
| If you want to… | Go to |
|---|---|
| Understand a straightforward loan | Equipment loans |
| Understand the full commercial category | Commercial equipment financing |
| Compare a lease against a loan | Equipment leasing |
| Deal with a weak or damaged credit file | Bad credit equipment financing |
| Finance a business with little operating history | Startup equipment financing |
| Finance a specific machine type | Browse industries |
| Buy used rather than new | Used equipment |
| Estimate a payment yourself | Loan calculator |
| Reduce the after-tax cost | Section 179 equipment tax deduction |
Loans versus leases, in one table
| Equipment loan | Equipment lease | |
|---|---|---|
| Ownership | You own the equipment, subject to the lender’s security interest | The lessor owns it; you have the right to use it |
| Typical end of term | You keep the equipment | Return, renew or buy out, depending on the agreement |
| Monthly payment | Generally higher, because you are repaying the full price | Often lower, because you are paying for use over a period |
| Down payment | Commonly required | Often lower or sometimes none, depending on the provider |
| Balance sheet | The equipment and the debt are recorded | Treatment depends on the lease structure |
| Maintenance | Usually yours | Sometimes included, depending on the agreement |
| Best fit | Equipment you will keep and rely on for years | Equipment that changes, dates quickly or is needed short-term |
Read the table with one caution: the cheapest monthly payment is not automatically the cheapest arrangement. Compare the total cost of capital over the full term before deciding.
New or used equipment
New equipment usually carries a longer useful life, a full warranty and a simpler valuation for a provider. Used equipment costs less, which lowers the amount financed and the equity required, and it is often the more sensible first purchase. Age, hours and condition carry more weight in the review, so an inspection report or service records help.
Compare new and used equipmentWhat you will need
A government photo ID, business formation documents, an itemized equipment quote, and typically business bank statements and one to two years of tax returns. Requirements vary by provider and by amount. The full process, including what each stage asks for, is set out on our How It Works page.
See the full processFrequently asked questions
- Is equipment financing the same as a loan?
- Not exactly. Financing is the umbrella term covering loans, leases and other structures. A loan is one way to finance equipment.
- Do you charge for a pre-qualification request?
- No. There is no charge to submit a request, and no obligation to proceed with anything a provider offers.
- Will you tell me my rate before I apply?
- No, and no honest broker can. Rates depend on the provider and on your qualifications, and they are set by the lender, not by us. What we can do is explain exactly what moves a rate so you can prepare.
Equipment categories we cover
- Commercial Construction
Excavators, cranes, compact track loaders, skid steers, wheel loaders, backhoes and telehandlers.
- Agriculture & Farming
Tractors, harvesters, irrigation systems, sprayers and farm implements.
- Mining & Extraction
Drills, crushers, screens, conveyors and haul trucks.
- Oil, Gas & Energy
Rigs, pipeline equipment, generators, service trucks and renewable-energy equipment.
- Transportation & Freight
Semi-trucks, trailers, vocational trucks and logistics fleets.
- Warehousing & Distribution
Forklifts, conveyors, racking, robotics and sorting systems.
- Waste Management & Recycling
Garbage trucks, roll-offs, compactors, shredders and balers.
- Manufacturing & CNC Machining
CNC machines, robotics, production lines and precision tooling.
- Medical & Healthcare
MRI, CT, diagnostic, laboratory, dental and practice equipment.
- Printing & Packaging
Industrial presses, cutters, finishing systems and packaging lines.
- Aviation & Marine
Eligible aircraft, marine vessels, hangar equipment, tugs and ground-support equipment.
- Tree Care & Landscaping
Wood chippers, bucket trucks, stump grinders, mowers, mini excavators and skid steers.
- Restaurants & Hospitality
Commercial kitchen equipment, refrigeration, ovens, fryers, dishwashing, bar systems, POS and hotel laundry.
- AI Infrastructure & Technology
GPU and CPU servers, storage arrays, networking, racks, power distribution, cooling and enterprise IT hardware.
- Fitness & Recreation
Cardio machines, strength equipment, functional training rigs, turf, recovery equipment and recreation facility equipment.
What we will not tell you
We will not tell you that approval is guaranteed, that there is no credit check, that we have the lowest rate or that funding is instant. Those claims are common in this industry and they are not something we can substantiate.
What we can tell you is exactly what we do with your request, who reviews it, what consent you gave and what happens next. Everything else comes from the financing provider that actually makes the decision.
Submitting a pre-qualification request is not an application decision and is not an approval, offer or commitment to lend. All financing is subject to review and approval by the applicable financing provider. Submitting this request does not by itself trigger a soft or hard credit inquiry. Any credit inquiry requires your separate authorization and is performed by the financing provider, not by this website.
Related pages
Request financing options
One short request, reviewed by a commercial financing intermediary, matched to providers where the fit is reasonable.
Phone: 888-629-3416 · Submitting a pre-qualification request is not an application decision and is not an approval, offer or commitment to lend. All financing is subject to review and approval by the applicable financing provider.
Last updated · Reviewed and published by Ai Loan Brokerage LLC, operating as EquipmentLoan.com (Loan Broker).