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Compare · 2026

Equipment Loan vs Line of Credit for Contractors

Buy the machine with a fixed loan, or use flexible credit? Here's the trade-off.

$25K–$5Mfunding range
24 hrstypical funding
500+credit scores OK
Contractors& trades
No collateralfor working capital

See how much your contracting business qualifies for

$25K to $5M for contractors and trades — approved on your revenue, funded in as little as 24 hours. No collateral for working capital.

  • ✓ 500+ credit
  • ✓ 6+ months open
  • ✓ $10K+/mo revenue
1-Minute Application

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Start your application in about a minute. A real decision fast — soft credit pull, no obligation.

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🔒 Soft credit pull · will not affect your credit score

Short answer: An equipment loan is best for buying a specific machine — the equipment secures it, so rates are lower and terms longer. A line of credit is flexible cash for any need, but usually costs more and has lower limits than an equipment loan. To buy a machine, an equipment loan wins on cost; for mixed needs, a line adds flexibility.

Reviewed by the Contractor Capital Funding Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

Equipment loan vs line of credit

How the two options compare, in plain terms.

CriteriaEquipment LoanLine of Credit
Secured byThe equipmentUsually unsecured
Best forBuying a machineFlexible cash
RateLower (asset-backed)Higher
AmountUp to machine value$10K – $500K
ReusableNoYes

Why contractors finance with us

  • The equipment is the collateral — no extra assets pledged
  • FICO 500+ accepted; approval on revenue
  • New, used, and auction units qualify
  • Funds in 1-3 days with the seller's quote
  • Keep working capital free for jobs
  • Fixed payments you can bid around

What you need to apply

  • US-based contracting business
  • 6+ months in business
  • A quote or invoice for the equipment
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Should I use an equipment loan or a line of credit to buy a machine?
An equipment loan — it's secured by the machine, so rates are lower and terms longer than drawing from a line of credit.
How fast can I finance equipment?
Typically 1-3 business days once the seller's quote and your bank statements are in.
Can I qualify with bad credit?
Yes — FICO 500+ can qualify because the equipment secures the financing.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

Finance your equipment

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.

Get funded in 24 hours

Approved on your revenue, not just your credit. Start your 1-minute application.

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Why contractors choose us

Funding that fits construction cash flow — retainage, progress draws, equipment, and payroll gaps.

🏗️

Built for the trades

General contractors, subs, and every trade. We fund the way construction actually gets paid.

⚡

Funded in 24 hours

Cover materials, mobilization, or payroll between draws — decision in as little as 4 hours.

📊

Approved on your revenue

500+ FICO accepted. Underwritten on your deposits and receivables, not just your score.

Ready to get funded?

Approved on your deposits, not just your score. Funded in as little as 24 hours.

START MY 1-MINUTE APPLICATION →
Apply Now — Funded in 24 Hours →
Before you go

See how much your contracting business qualifies for

$25K–$5M · funded in 24 hours · 500+ credit OK. A soft credit pull that will not affect your score.

START MY 1-MINUTE APPLICATION →

No obligation · takes about a minute