Model your equipment loan or lease with down payment, residual value, and term. Built for trucks, machinery, restaurant equipment, technology, and other titled or business-use assets.
Frequently Asked Questions
What is a residual value in equipment financing?
Residual value is the estimated end-of-term buyout amount on structures that include one. Typical residuals run 10–20% of equipment cost.
How much down payment is typical?
0% to 20%. Stronger borrowers and new equipment often qualify for $0 down; used equipment and weaker credit raise the requirement.
Can I finance used equipment?
Yes — most lenders finance used equipment. Rates may be higher and terms shorter to account for faster depreciation.
What's the difference between an equipment loan and a lease?
A loan finances ownership — you own the equipment at the end. A lease is rental with a potential purchase option; payments may be lower but you don't build equity.
Is equipment financing tax deductible?
Yes — interest is deductible as a business expense, and Section 179 may allow you to deduct the full equipment cost in year one within annual limits. Confirm with your tax advisor.
What credit score do I need for equipment financing?
Bank equipment financing typically requires 680+ FICO. Specialty non-bank lenders work with scores as low as 580 because the equipment serves as collateral.
How long can equipment financing terms run?
Typically 3–7 years for most business equipment, up to 10 years for heavy machinery and titled vehicles.
Are equipment financing rates fixed or variable?
Most equipment loans use fixed rates, making monthly budgeting predictable. Some larger commercial deals offer variable-rate options tied to prime.
Can startups get equipment financing?
Yes — it's often more accessible than working capital loans for startups because the asset secures the loan. Expect higher rates and possibly a larger down payment.
What documents are required to apply?
Typically: 3–6 months business bank statements, equipment quote or invoice, basic application, owner ID, and for larger deals, business tax returns and financial statements.