What this page helps you decide
Equipment financing evaluates more than a credit score. The machine's age and value, dealer, down payment, expected utilization, insurance, business history, and the work it will perform all affect structure.
Options to compare before applying
| Option | Best aligned with | Typical process | Watch closely |
|---|---|---|---|
| Equipment loan | Long-term ownership | Several days to weeks | Asset secures the financing |
| Equipment lease | Lower upfront need or upgrade cycle | Varies | Review end-of-term obligations |
| Dealer financing | Qualified dealer purchase | Potentially streamlined | Compare beyond the monthly payment |
| Working capital plus cash purchase | Small repair or low-cost asset | Potentially faster | May be more expensive than asset financing |
A four-step funding decision
Make the request easy to evaluate
Underwriting is clearer when the requested amount is tied to the specific operating event described on this page—not a rounded maximum. The file should connect dealer invoice or purchase agreement with equipment specifications and serial number, then show the date and source of expected repayment.
Present a base case and a downside case. The downside case should assume that the expected cash event arrives later than planned while the proposed payment still begins on schedule. If ordinary operations cannot support that case, reduce the request, change the product, negotiate the underlying expense, or wait.
A strong request answers four questions in plain language: What creates the need? Why is the amount correct? What business event repays it? What happens if that event is delayed?
Compare agreements on the same basis
Convert every offer into
- Net cash delivered after fees
- Total contractual payback
- Payment amount and frequency
- Estimated payoff date
- Prepayment treatment
Ask before signing
- What conditions remain before funding?
- Is the payment fixed or variable?
- What happens after a weak sales week?
- Are there liens or guarantees?
- Who services the obligation?
Documents that clarify the request
- Dealer invoice or purchase agreement
- Equipment specifications and serial number
- Insurance information
- Bank statements and contracts supporting utilization
Before signing anything
- A low monthly payment can hide a longer or more expensive structure.
- Confirm inspection and title requirements.
- Do not finance equipment without enough projected utilization.
- Understand personal guarantees and repossession rights.
Common questions
Can a down payment improve the request?
It can reduce lender exposure and demonstrate commitment, though requirements depend on the asset and file.
Is used equipment financeable?
Often yes, subject to age, hours, condition, valuation, dealer, and remaining useful life.
What matters besides credit?
Asset quality, business deposits, time in business, down payment, contracts, utilization, and existing obligations.
Independent resources
U.S. Small Business Administration — Fund your business Consumer Financial Protection Bureau — Small-business lending resourcesProduct availability, qualification, cost, and timing vary. This page is educational and does not constitute a financing commitment.
See what the business may qualify for
Contractor Capital Funding focuses on equipment, vehicle, and asset-backed funding for working contractors. A complete application allows the request to be evaluated; it does not guarantee approval or a particular funding time.
Review funding options