Equipment financing is one of the easier business funding types to qualify for - because the equipment itself is the collateral. That changes the math: lenders can say yes to newer businesses and lower credit scores than an unsecured loan would ever allow, because if it goes wrong, they can recover the asset.
Here's exactly what lenders look for, tier by tier, and how to strengthen a weak spot before you apply.
The core requirements
- Personal credit score - typically from 600, though asset-backed programs go lower with a larger down payment.
- Time in business - many lenders fund from 6 months; startups can qualify with stronger personal credit or more down.
- Revenue - enough consistent cash flow to cover the payment; some programs have no hard minimum for smaller tickets.
- The equipment - titled, identifiable, and holding resale value (new or used).
- A down payment - often 0-20%, depending on your profile and the asset.
Credit score: what lenders actually want
Credit sets your rate and down payment more than whether you're approved at all. Because the asset secures the deal, the tiers look roughly like this in today's market:
| Credit profile | Typical outcome | Down payment |
|---|---|---|
| 680+ | Best rates, fast approval, often $0 down | 0-10% |
| 640-679 | Solid approval, competitive rate | 10-15% |
| 600-639 | Approved, higher rate | 10-20% |
| Under 600 | Possible with strong asset + more down | 20%+ |
New vs. used equipment changes everything
Newer equipment with strong resale value (trucks, lifts, CNC machines) gets better terms because the collateral is worth more. A niche or fast-depreciating asset may need more down - factor that into which unit you buy.
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What do you need funding for?
Documents you'll need
For smaller tickets - often under $150K - many lenders run an 'application-only' program: no tax returns, no financials, just the application and a soft look. That's the fastest path to a same-week approval.
- A quote or invoice for the equipment from the vendor
- Basic business details (EIN, entity type, time in business)
- 3-6 months of business bank statements for larger tickets
- Driver's license and, for bigger deals, a simple financial statement
How to improve your approval odds
- Put a little more down - even 10% can move you a full rate tier and widen your options.
- Choose equipment with strong resale value - it's collateral, so it directly affects terms.
- Clean up your bank statements - avoid overdrafts in the 90 days before you apply.
- Apply through a marketplace - one application, multiple lenders competing, no repeated hard pulls.
Get a callback from a funding specialist
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Why businesses run equipment deals through Dealerun
One application reaches funding partners who specialize in equipment for trucking, auto, and service businesses - from $10K to $2M, decisions in hours, and no credit impact to check. New or used, own or lease.
See what equipment terms you qualify for
Two minutes, no credit pull - real numbers on the equipment you're buying.
Frequently asked questions
What credit score do I need for equipment financing?+
Many programs approve from around 600, and asset-backed lenders will go lower with a larger down payment. Your score mostly sets the rate and down payment rather than a hard yes/no, because the equipment secures the deal.
Can I get equipment financing for a startup with no revenue?+
Yes. Startup and no-revenue programs exist - they lean harder on your personal credit and usually ask for more down (often 15-20%). The equipment being strong, identifiable collateral is what makes it possible.
Do I need a down payment for equipment financing?+
Not always. Strong-credit borrowers often finance 100% with $0 down. Lower credit or a fast-depreciating asset typically means 10-20% down. More down almost always improves your rate.
Can I finance used equipment?+
Yes - both new and used equipment can be financed. Terms depend on the age, type, and resale value of the specific unit, so a well-maintained used machine with strong resale can price close to new.
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