Equipment Financing in 2026: Rates, Requirements & How to Qualify

Whether you need a CNC machine, a fleet of delivery trucks, or medical imaging equipment, understanding your financing options can save you tens of thousands of dollars. Here's what the equipment financing market looks like right now.

Current Equipment Financing Rates

Equipment financing rates vary significantly based on your business profile. Here's what the market looks like in early 2026:

For a deeper look at how equipment financing compares to other options, see our complete equipment financing guide or compare equipment financing vs. SBA loans.

How to Qualify for Equipment Financing

Equipment loans are among the most accessible forms of business financing because the equipment itself serves as collateral. That said, lenders still evaluate your business:

• Annual Revenue — Most lenders want $100K+. Some alternative lenders work with $50K+ but charge higher rates.
• Time in Business — 6 months minimum for most lenders. Banks typically require 2+ years.
• Credit Score — 600+ for most options. 700+ for the best rates. Some lenders accept 550+.
• Equipment Type — New equipment is easier to finance. Used equipment may require appraisal and higher down payments.

Equipment Financing by Industry

Different industries have different equipment needs and financing considerations:

Construction & Contracting — Heavy equipment (excavators, cranes, bulldozers) typically qualifies for longer terms due to equipment longevity. Seasonal businesses may benefit from flexible payment structures. Construction funding guide →

Medical & Dental Practices — Imaging equipment, dental chairs, and surgical tools are well-understood by lenders. Medical practices often qualify for favorable terms due to stable revenue. Medical practice funding guide →

Manufacturing & Wholesale — CNC machines, production lines, and warehousing equipment. Larger ticket sizes ($100K-$5M+) often qualify for SBA 504 loans with the lowest rates. Manufacturing funding guide →

Transportation & Logistics — Fleet vehicles, trucks, and trailers. Vehicle financing has its own specialized market with competitive rates and terms up to 7 years. Transportation funding guide →

Equipment Financing by State

While equipment financing is available nationwide, approval rates, average loan sizes, and SBA lending activity vary by state. Here are the most active markets:

See all 50 states →

Leasing vs. Buying: A Decision Framework

Buy when:

• Equipment has 7+ year useful life
• Technology won't become obsolete quickly
• You want to build equity and claim depreciation
• Section 179 deduction applies (up to $1.16M)
• You plan to modify or customize the equipment

Lease when:

• Equipment has under 5-year useful life
• Technology changes rapidly (computers, medical)
• You want to preserve cash flow
• You need to upgrade frequently
• Off-balance-sheet financing is important

Alternatives to Equipment Financing

Equipment loans aren't the only option. Depending on your situation, these may work better:

• SBA Loans — Lower rates (5.5-8%) but slower funding. Best for purchases over $150K.
• Business Line of Credit — Draw funds as needed. Good if you need equipment plus working capital.
• Revenue-Based Funding — Fast funding, flexible repayment. Works if you need equipment money fast.
• Working Capital Loans — Short-term funds for immediate equipment needs under $250K.

Not sure which is right? Compare equipment financing vs. working capital or compare equipment financing vs. revenue-based funding.

Frequently Asked Questions