8 Best Equipment Loans for Bad Credit in 2023
This article is part of a larger series onBusiness Financing.
The best options for equipment financing with bad credit should have credit score requirements of less than 620. Options can include equipment loans or leases and should come with competitive rates and fees. Lenders offering equipment financing for bad credit should also provide a combination of excellent customer service, an easy application process, and fast funding speeds.
If you’re looking for equipment loans for bad credit, here are our eight picks for the best equipment financing options.
Best Providers for Equipment Loans for Bad Credit:
- eLease:Best for equipment leasing
- National Funding:Best for customer service and smaller financing needs
- Balboa Capital:Best for fast approvals and funding speeds
- First Capital Business Finance:Best for larger financing needs
Best Brokers for Equipment Loans for Bad Credit:
- Smarter Finance USA:Best for flexible qualification requirements
- Clarify Capital:Best for multiple loan options
- SBG Funding:Best for longer term financing options
- National Business Capital:Best for startups with strong monthly cash flow
Best Equipment Loans for Bad Credit at a Glance
*No minimum credit score requirement with six months of business history and $120,000 in annual revenue. Business revenue requirement is waived with a credit score of 650 or higher. Credit scores below 650 require at least six months’ time in business.
For tips on improving your chances of getting approved and picking the right lender, read our guide onhow to get a small business loan.
eLease: Best for Equipment Leasing
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Rates & Terms
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Estimated Starting APR |
8% and up |
Loan Amount |
$3,000 to $500,000 |
Repayment Term |
Up to 60 months |
Repayment Schedule |
Monthly |
Funding Speed |
48 hours from time of application |
Qualifications
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Credit Score |
500 |
Time in Business |
None |
Annual Revenue |
None |
Down Payment |
10% |
As its name might imply, eLease offers financing options for businesses wanting to lease equipment. Its minimum credit score requirement is 500, and although some other providers on our list have no minimum requirement at all, eLease is more willing to work with borrowers who have had credit challenges in the past.
Like many other providers in this guide, eLease has almost no restrictions on industries it will finance. Examples include agricultural equipment, computers, furniture, manufacturing items, office equipment, networking equipment, and construction.
Estimated APRs will start at around 8% for highly qualified businesses. With bad credit, you should expect rates to start around 15%. There are no requirements for revenue or time in business, but demonstrating strengths in these areas can help you get a lower rate.
You can visit eLease’s website to learn more or call the company’s toll-free number if you have any questions. You can also complete an online application to begin the process.
National Funding: Best for Customer Service & Smaller Financing Needs
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Rates & Terms
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Estimated Starting APR |
15% and up (factor rates as low as 1.11x) |
Loan Amount |
Up to $150,000 |
Repayment Term |
24 to 60 months |
Repayment Schedule |
Monthly |
Funding Speed |
24 to 72 hours |
Qualifications
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Credit Score |
600 |
Time in Business |
2年 |
Annual Revenue |
$250,000 |
Down Payment |
None |
国家资金提供了高达150000美元的联合t financing. While that’s the lowest amount listed in our guide, this provider has competitive rates and terms, and it can give you a high level of service. For those reasons, we selected it as the best option for smaller financing needs or businesses that value excellent customer service.
To be eligible, you’ll need a minimum credit score of 600. You’ll also need to have been in business for at least two years and have annual revenue of $250,000. In general, most of the clients National Funding works with are businesses that are already doing well financially.
One benefit of getting a loan with this provider is that it offers early payment discounts. Equipment financing borrowers can get a 6% discount on the remaining balance when paying off the loan early.
To apply, you can complete an online application. If additional documents are needed, you’ll be given more detailed instructions. Keep in mind that your application is not considered complete until that step is done. Upon receiving a full application, the provider will pair you with a funding specialist who will review your application and learn more about your business needs and goals to match you with a loan best suited for your circumstances.
Balboa Capital: Best for Fast Approvals and Funding Speed
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Rates & Terms
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Estimated Starting APR |
5% to 20%-plus |
Loan Amount |
$3,000 to $500,000 |
Repayment Term |
12 to 60 months |
Repayment Schedule |
Monthly |
Funding Speed |
As fast as same day |
Qualifications
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Credit Score |
620 |
Time in Business |
12 months |
Annual Revenue |
$100,000 |
Down Payment |
None |
Balboa Capital can offer some of the fastest approval and funding speeds out of all the providers in our guide. From start to finish, it’s possible to get funding on the same day that you apply. Depending on when you submit an application, one-hour approvals are available during regular business hours, in addition to same-day funding.
This provider can do this because it offers a streamlined application-only process under certain circumstances. Applications for hard collateral under $500,000 are eligible for this reduced documentation process as well as soft collateral applications for up to $350,000.
The downside, however, is that Balboa Capital does have the highest minimum credit score requirement on our list. You’ll need a credit score of 620, 12 months’ time in business, and $100,000 in annual revenue. Businesses that qualify can get up to $500,000 in financing, with rates that typically range between 5% and 20% depending on your business credit and finances.
Submitting an initial application to this provider will not affect your score as Balboa Capital conducts a soft credit pull to determine if you might qualify. If you don’t, no additional credit pulls will be done. To apply, you can visit the Balboa Capital website and complete a form with your business information and the details of the financing you need.
First Capital Business Finance: Best for Larger Financing Needs
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Rates & Terms
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Estimated Starting APR |
19% to 35% |
Loan Amount |
$5,000 to $5 million |
Repayment Term |
12 to 72 months |
Repayment Schedule |
Monthly |
Funding Speed |
24 to 48 hours |
Qualifications
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Credit Score |
500 |
Time in Business |
None |
Annual Revenue |
None |
Down Payment |
None |
With loan amounts up to $5 million, First Capital Business Finance is our pick as the best provider for businesses with larger equipment financing needs. While there are other providers on our list that offer the same amount, First Capital Business Finance has easier qualification requirements.
To be eligible for financing, you’ll need a minimum credit score of 500. There are no requirements for time in business or business revenue, and it’s possible to qualify with no down payment. With that said, applications are evaluated on a case-by-case basis, so demonstrating certain strengths in your application can significantly improve your odds of landing an approval.
With First Capital Business Finance, you’ll be able to finance almost any equipment that is related to your business in almost any industry. To learn more or apply, you can visit the provider’s website.
Smarter Finance USA: Best for Flexible Qualification Requirements
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Rates & Terms
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Estimated Starting APR |
7% to 20% |
Loan Amount |
$10,000 to $1 million |
Repayment Term |
24 to 60 months |
Repayment Schedule |
Weekly, monthly, seasonal, and deferred |
Funding Speed |
2 to 4 days from time of application |
Qualifications
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Credit Score |
None, but 600 is recommended |
Time in Business |
None |
Annual Revenue |
None |
Down Payment |
$399 (documentation fee) to 35% |
Smarter Finance USA has no minimum requirements for credit score, time in business, or annual revenue. It is a broker with over 37 lenders in its network and evaluates each loan application on a case-by-case basis to improve your chances of landing an approval. For these reasons, we selected it as the best provider for those seeking flexible qualification requirements.
It offers equipment financing to a wide variety of industries. Some examples include healthcare, food service, and companies needing vehicle loans or leasing options. Rates can start as low as around 7%, but keep in mind that the best rates require businesses to be highly qualified. With bad credit, it is unlikely you’ll get the lowest available rates.
Although this broker has no minimum credit score requirement, it can be especially difficult to get approved if your score is below 600. To improve your chances of being approved, you should have strong compensating factors to your loan application. Some examples can include a large down payment or a track record of strong business finances.
To apply, you can visit the Smarter Finance website and submit an online application. This is something that should take no more than several minutes, after which you can work with a lending team member to match you with a loan. Getting funded typically takes two to four days from the time you apply.
Clarify Capital: Best for Multiple Loan Options
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Rates & Terms
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Estimated Starting APR |
6% and up |
Loan Amount |
$25,000 to $5 million |
Repayment Term |
12 to 60 months |
Repayment Schedule |
Monthly |
Funding Speed |
Seven days from time of application |
Qualifications
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Credit Score |
550 |
Time in Business |
12 months |
Annual Revenue |
$200,000 |
Down Payment |
As low as 0% |
Clarify Capital is a broker with over 75 lenders in its network. Although there are other providers, such as National Business Capital with a number of lending partners, Clarify Capital has a lower credit score requirement, making it optimal if you want multiple loan options.
With Clarify Capital, you can qualify with a credit score of 550 or higher. You’ll also need 12 months’ time in business and annual revenue of $200,000. Rates start as low as 6% but keep in mind that the lowest rates often require excellent credit and business finances.
If approved for funding, you can use the loan proceeds for virtually any business-related purpose. This includes vehicles, machinery, construction equipment, office supplies, furniture, computers, and more.
One potential downside with Clarify Capital is that it typically takes between seven and 14 days to close. While this can be longer than the other options in our guide, we still strongly recommend this broker because of its competitive rates, terms, and consistently high customer reviews and ratings. To learn more or to apply, you can visit the Clarify Capital website.
SBG Funding: Best for Longer-term Financing Options
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Rates & Terms
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Estimated Starting APR |
3.75% and up |
Loan Amount |
Up to $5 million |
Repayment Term |
1 to 7 years |
Repayment Schedule |
Monthly |
Funding Speed |
As fast as 48 hours from time of application |
Qualifications
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Credit Score |
500 |
Time in Business |
6 months |
Annual Revenue |
$250,000 |
Down Payment |
None |
SBG Funding has repayment terms of up to seven years—that’s longer than any other option listed here, making it a good choice for businesses seeking lower monthly payments. Additionally, it has a low credit score requirement of 500.
One downside is its high annual revenue requirement. Earlier this year, it required just $120,000 annually to qualify. However, it recently increased it to a minimum of $250,000.
While it may be difficult for some businesses to meet that criteria, SBG Funding states that it has an approval rate of 85% for those that qualify. Revenue is typically verified by looking at the last four months of your business bank statements. You’ll also need to provide a copy of your driver’s license and a voided check for your business bank account as part of the application process.
If you’re unsure if you qualify, you can submit an online application in just several minutes. Applying does not impact your credit score, and it’s possible to get a loan decision within 48 hours.
National Business Capital: Best for Startups With Strong Monthly Cash Flow
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Rates & Terms
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Estimated Starting APR |
10% to 60% |
Loan Amount |
10000美元到500万美元 |
Repayment Term |
12 to 60 months |
Repayment Schedule |
Varies |
Funding Speed |
As fast as 24 to 48 hours from time of application |
Qualifications
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Credit Score |
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Time in Business |
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Annual Revenue |
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Down Payment |
None |
National Business Capital is a good option if your business has strong revenue and cash flow. This is because, with annual revenue of $120,000 or more, it’s possible to get a loan with no minimum credit score requirement.
This company can provide financing for pretty much any type of business. This includes those working in fields such as medical, software, manufacturing, food services, and automotive.
Another benefit of working with National Business Capital is that it is also a broker with over 75 lenders in its network. This means you’ll have more loan options and a greater likelihood of getting approved. Rates can start as low as around 10% for the most well-qualified businesses. With bad credit, however, it will be unlikely you’ll qualify for these low rates.
You can apply online from the National Business Capital website in under one minute. Required financial documents can vary on a case-by-case basis, but it’s possible to get approved with only business bank statements.
How We Chose the Best Equipment Loans for Bad Credit
We used the following criteria in selecting the best equipment financing options for bad credit:
- Minimum credit score requirement
- Interest rates and estimated APR
- Time in business and revenue requirements
- Loan amount and repayment terms
- Application, approval, and funding speeds
- Down payment requirements
- Customer reviews and ratings
Alternatives to Equipment Loans
Getting an equipment loan with bad credit can sometimes be challenging. Even if you are approved, you may get a higher interest rate. Here are some alternatives to consider if you’re looking for sources of funding that are easier to get, or have lower rates and fees:
- Equipment leasing:An equipment lease allows you to rent business equipment for a limited period of time. Once the lease expires, you must return the equipment. You can read our guide onequipment financingto determine whether a loan or lease is better suited for your business.
- Small business line of credit:This is a revolving line of credit that allows you to draw funds on an as-needed basis. In some instances, you can get a low introductory rate. Check out our list of theleading small business lines of credit.
- Rollover for business startups (ROBS):A ROBS gives you access to your personal retirement accounts without having to pay taxes or early withdrawal penalties. You can avoid monthly payments and interest charges that you’d otherwise be paying on a loan. We recommend using a company from our list of thebest ROBS providersto walk you through this process.
- Invoice factoring:This can be a good option if you are awaiting payment from customers but need funds more quickly to use for other areas of your business. To start, see ourtop-recommended invoice factoring companies.
Frequently Asked Questions (FAQs)
Yes, you can qualify for financing with bad credit if you can show other strengths in your loan application. You can do this by agreeing to a large down payment, showing that your business is profitable, or setting aside cash to be used as a security deposit. Financing equipment that holds its value very well can also improve the terms of a loan approval.
You can get equipment financing with bad credit from banks and online lenders. Companies that review applications on a case-by-case basis and have a large marketplace of lenders are best for improving your chances of being approved.
与坏credit, you can expect to receive rates at 15% or higher. However, the rate you can get will depend on several other items, such as your time in business, type of equipment being financed, down payment amount, and business revenue. With so many variables, shop multiple lenders to ensure you’re getting a competitive rate.
Bottom Line
Getting equipment financing with bad credit is possible with the right lender. The companies we’ve chosen all have low credit score requirements but can still offer competitive rates and loan terms. As with most loans, it’s a good idea to get a quote from several companies before making any final decisions.