What is equipment financing?
Equipment financing lets you purchase machinery, vehicles, technology, or other business equipment without paying the full cost upfront. The equipment you're buying serves as the collateral, which makes approval easier and rates lower than unsecured options.
Terms are typically matched to the useful life of the asset, so your payments line up with the value the equipment generates.
How it works
- You choose the equipment and get a quote or invoice.
- The lender finances up to 100% of the cost.
- The equipment itself secures the loan — less risk, better rates.
- You repay over a term aligned to the equipment's useful life.
What it costs
Equipment financing is priced as an APR, from about 7.5% for strong borrowers, with the term matched to the equipment's useful life. The equipment secures the financing, which is why rates can be lower than unsecured options.
Leases work differently: payments may be lower, but less of each one goes toward ownership. Compare the total cost, including any down payment and end-of-lease buyout, with the equipment financing calculator.
Rates, amounts and terms on this page are typical ranges, not offers or guarantees. Your terms depend on your business and the lender that makes the offer. Cashifi is not a lender and does not make credit decisions.
Best for
- Buying machinery, vehicles, or technology
- Replacing or upgrading aging equipment
- Preserving cash by not paying upfront
- Newer businesses that lack other collateral
Pros and considerations
Pros
- + Up to 100% financing of equipment cost
- + Lower rates because the asset is collateral
- + Fast approvals — often 24–48 hours
- + Preserves working capital and credit lines
Considerations
- – Funds can only be used for equipment
- – The financed equipment can be repossessed on default
- – Older or specialized equipment may finance at lower percentages
Do you qualify?
- A quote or invoice for the equipment
- 600+ credit score (varies)
- Active business with revenue
- Time in business helps but isn't always required
Typically you'll provide: Equipment quote or invoice, 2 months of business bank statements, A voided business check.
How to apply
- 1Complete one application online — about four minutes, with a soft credit check that won't affect your score.
- 2Upload your recent business bank statements so lenders can see your revenue and cash flow.
- 3Compare the offers that come back, ranked by total cost, and choose the one that fits. There is no obligation.
Frequently asked questions
What equipment can I finance?
Almost any business equipment — vehicles and trucks, restaurant and kitchen equipment, manufacturing machinery, medical and dental equipment, computers and technology, and more.
Can I finance 100% of the cost?
Often, yes. Many programs finance up to 100% of the equipment cost, sometimes including soft costs like delivery and installation.
What happens if I can't pay?
Because the equipment secures the loan, the lender can repossess it on default — which is also why rates are lower than unsecured financing.