Best equipment loans in December 2025

Access to small business funding is a challenge for many business owners. Rate hikes and bank turmoil have led to lenders tightening credit standards and eligibility requirements. This can make it difficult for startups, bad-credit borrowers and business owners in underserved areas to get approved for small business loans. 

Our experts consider several factors in this category and award higher scores to lenders that offer flexible loan amounts, fast approval and funding and inclusive time in business and annual revenue requirements.

The affordability of a business loan often depends on a business owner's financial profile. A business with high revenue and a flexible budget will likely be able to afford most loan options. Businesses considered high risk, such as startups or those with bad credit, may struggle to find loans with affordable interest rates and reasonable fees. 

We consider a business loan affordable if the payments are manageable, you have the lowest possible rate based on your creditworthiness and there are minimal fees. Lenders that have lower rates, offer rate or fee discounts and have minimal fees receive higher scores. 

A good customer experience requires a lender to be transparent, efficient and responsive. Reputable lenders that value their customers are easy to communicate with, responsive to your questions and concerns and willing to go the extra mile to make sure you have a positive experience for the life of the loan.

Lenders offering online accounts and applications and a range of customer support availability score higher in this category. 

While the Truth in Lending Act (TILA) protects consumers against unfair or harmful lending practices, it doesn’t apply to business loans. This can make it harder to get straightforward and upfront information on loan costs when comparison shopping. We score lenders that make it easy to find rates and fees, as well as eligibility and credit score requirements, higher than those who do not disclose information.

Loan flexibility is finding a loan to meet your needs, even if you don’t have high annual revenue, several years in business or the best credit score. Loan flexibility can look like lenders that offer multiple lending products, variety in loan terms or unique options to give business owners the opportunity to fund their businesses in a way that works for them.

Lenders scoring high in this category offer varied products and services to cater to all types of borrowers and businesses.

Term loans are dispersed in one lump sum and then paid back monthly over an agreed-upon term, often up to five years. Term loans have varying interest rates and origination fees. You can use a term loan for almost any purpose, including buying equipment. Make sure you pay attention to early repayment penalties. You don’t want to pay a fee if you’re able to resolve your loan sooner than later. 

These SBA loans can help you purchase equipment or machinery or real estate. SBA 504 loans are specifically designed to help you purchase fixed assets that your company will use to boost production or sales. Loans are offered through Certified Development Companies and can grant loan amounts up to $5.5 million. SBA loans are also designed to help businesses that can’t qualify for conventional equipment loans elsewhere.

Business lines of credit are usually revolving lines of credit. You will have a draw period, during which you can take out money and purchase equipment, and then a repayment period. During the draw period, you can make multiple draws as long as you still have remaining credit available. You’ll only pay interest on the portion of the line that you have currently borrowed. You can also use this line of credit for other business expenses beyond your equipment should the need arise.

Some equipment loans take the form of semi-truck financing. These are set up to fund semi trucks specifically, so the loan amounts might be more in line with what new and used trucks are going for. Pre-approval may stay good for weeks and give you time to find the right truck. You might see drawbacks like higher rates because semi trucks can be a risk to finance. You may also face high down payment requirements.

Consider business credit cards if you can find one with a high enough limit or if the equipment you’re working to purchase is less expensive. Credit cards come with added perks like cash back and fuel points.

You might look into microloans if you’re purchasing less-expensive equipment. SBA microloans go up to $50,000, for instance. You may also find options like peer-to-peer lending or crowdsourcing options for microloans, which can be good alternatives for smaller companies and startups that don't meet other lenders' requirements. Just know that interest rates are likely to be higher and terms shorter than equipment loans offer.

Business grants are free money that doesn’t have to be paid back, but you will need to meet requirements and compete against other applicants. Grants are available at the local, state, and federal levels. Keep in mind that it can take time to apply and receive your funds so grants may not be a good option for immediate financial needs. Still, grants can be very niche and cater to your industry or be carved out for certain small business founders, including women and veterans. 

Crowdfunding platforms for businesses let you run funding campaigns to gather money from potential customers. With most types of crowdfunding, you don’t have to repay the money, though you may have to offer other incentives to contributors. Plus, you don’t need to meet a creditworthiness threshold to launch a campaign. However, your success depends entirely on how much buzz you generate around your business.

The total borrowing cost of an equipment loan depends on the equipment purchase price, the interest rate charged by the lender, any down payments and lender fees. Depending on the type of lender, equipment loan rates can be lower than other business loans. You may also need to put down between 10 percent to 20 percent of the equipment cost. 

Equipment loans are designed for you to purchase equipment to grow your business, as either a one-time lump sum or line of credit that you can use for multiple equipment purchases. The equipment can be anything that would improve your business operations, from office equipment to factory machinery.

Getting funds for an equipment loan can take as little as one day to several weeks, depending on the lender you choose. Online lenders may offer same-day funding, while large banks can take several weeks to disperse money. You can shorten the timeline by having your financial documents ready, including any required appraisal documents.