Can I finance used equipment?

Yes. Most providers finance used equipment from a dealer, an auction or a private party. Age and condition affect the maximum term and the advance rate, and very old assets may require a larger deposit.

Do I need a down payment for equipment financing?

Established businesses with good credit are often approved with no deposit on title-able assets. Newer businesses, private-party purchases and specialised equipment commonly require ten to twenty percent down.

Should I lease or finance the equipment?

Finance an asset that holds its value and stays productive for years. Lease equipment that dates quickly or that you expect to replace at the end of the term, and compare the buyout option before you sign.

How quickly can equipment be funded?

Once you provide the vendor invoice and the file is approved, funding usually reaches the vendor within one to five business days. Private-party purchases take longer because of title and inspection checks.

Funding solution

Equipment Financing for Machinery, Vehicles and Technology

Equipment financing funds a specific machine, vehicle or technology purchase, typically $10K–$1M, with the equipment itself serving as collateral. Because the asset secures the loan, approval standards are often easier than unsecured financing. BusinessLending360 matches your request with options from 1,700+ funding sources.

Typical range: $10,000 – $1,000,000

How equipment financing works

The funding provider pays the vendor for the equipment and you repay in fixed monthly instalments over a term matched to the asset's useful life. The equipment secures the transaction, so the provider's exposure is limited by the resale value of what it financed.

That collateral changes the underwriting. Providers weigh the asset's type, age, condition and secondary-market value alongside your revenue and credit, which is why an established business can often finance 100% of a title-able asset such as a truck, while specialised or soft-cost equipment may require a deposit of ten to twenty percent.

You can finance new or used equipment, purchases from a dealer or a private party, and in some cases a sale-leaseback of equipment you already own free and clear. Financing a used asset usually shortens the maximum term.

A lease is the common alternative to a loan: lower monthly payments, ownership transferring at the end through a $1 buyout or fair-market-value purchase. Leases suit equipment that dates quickly; loans suit assets that hold value.

Rates and costs

Equipment financing prices below most unsecured business products because the asset can be recovered and resold. Established businesses with good personal credit see the lowest quotes; newer businesses, private-party sales and older assets price higher and finance a smaller share of the purchase price.

Watch for documentation fees, UCC filing fees and whether the quote is a simple interest rate or a lease factor. On a lease, the end-of-term buyout materially changes the total cost and is easy to overlook when comparing monthly payments alone.

BusinessLending360 does not set or advertise rates. Pricing is set by each funding provider and depends on the asset, credit profile, revenue, time in business, amount and term. Confirm current pricing directly with the provider.

Amounts and terms

Typical amount: $10,000 – $1,000,000
Rate basis: Est. APR, or lease factor on lease structures
Term: 12 – 72 months, matched to asset life
Repayment: Fixed monthly instalments
Typical funding speed: 1 – 5 business days once the invoice is provided
Collateral: The financed equipment; personal guarantee common

How to qualify

At least 6 months in business for most providers.
A vendor quote or invoice describing the equipment.
Personal credit typically 600+, with asset-backed options from 550.
Revenue sufficient to cover the new payment alongside existing obligations.
A deposit of 0% to 20% depending on the asset and your profile.

Pros and cons

The equipment secures the deal, so approval is often easier.
Terms are matched to the asset's useful life, keeping payments level.
Preserves your line of credit and cash for operating needs.
Section 179 or bonus depreciation may apply — confirm with your CPA.

Funds can only be used for the specified equipment.
Used or specialised assets may need a larger deposit.
The provider holds a lien until the balance is repaid.
Financing an asset for longer than it stays productive is a real risk.

Common use cases

Adding a truck or trailer to a growing fleet
Replacing a CNC machine or production line
Outfitting a commercial kitchen or medical suite
Refreshing computers, POS systems or diagnostic equipment

Alternatives to consider

Related guide: read the full breakdown.

Frequently asked questions

Can I finance used equipment?: Yes. Most providers finance used equipment from a dealer, an auction or a private party. Age and condition affect the maximum term and the advance rate, and very old assets may require a larger deposit.
Do I need a down payment for equipment financing?: Established businesses with good credit are often approved with no deposit on title-able assets. Newer businesses, private-party purchases and specialised equipment commonly require ten to twenty percent down.
Should I lease or finance the equipment?: Finance an asset that holds its value and stays productive for years. Lease equipment that dates quickly or that you expect to replace at the end of the term, and compare the buyout option before you sign.
How quickly can equipment be funded?: Once you provide the vendor invoice and the file is approved, funding usually reaches the vendor within one to five business days. Private-party purchases take longer because of title and inspection checks.

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