The top equipment financing options for 2024.

Business owners often require equipment to operate, such as surgical instruments, computers, commercial ovens, and hair dryers. These expenses can accumulate quickly, making equipment financing a useful option.

CNBC Select has compiled a list of top equipment financing options based on factors such as funding amount, credit requirements, and application process. Learn more about our methodology here.

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Best for fair credit

National Funding is a lender that caters to borrowers with less-than-excellent credit. This lender typically considers applicants with fair credit, defined as a FICO credit score between 580 and 669.

This lender has a minimum requirement of six months in business, making it more accessible for new businesses.

Best for same-day funding

If you need money urgently, OnDeck offers same-day funding for term loans of up to $100K. However, you must complete the process and checkout before 10:30 a.m. EST on a weekday to receive your funds by 5 p.m. EST that same day. This can be an expedient way to receive funding if you qualify for the same-day process.

OnDeck's term loan is accessible for those with fair credit as it has a minimum credit score requirement of 625.

Best for options for $0 down

What is the purpose of this? Cardiff offers equipment financing with the option to pay $0 down for the funding. Typically, equipment financing loans require a down payment between 10% and 20% of the loan amount. By paying zero dollars down, it becomes easier to secure a loan without depleting your cash reserves.

Quickly submit your information and qualifications with Cardiff's five-minute application process.

Best for small loan amounts

Crest Capital offers small loans to qualified borrowers, with a minimum loan amount of $5,000.

Several industries, including healthcare, IT, and construction, can benefit from equipment financing offered by Crest Capital.

Best for large loan amounts

Borrowers who require large loans will appreciate Kapitus's loan offer with no maximum funding limit. Consider this lender when you're concerned that your funding requirements exceed others' capacity.

This lender provides monthly and weekly repayment options, allowing you to choose the repayment schedule that best suits your needs.

National Funding

National Funding offers a range of loans, including working capital loans, equipment financing loans, and short-term business loans, suitable for various industries. The company has provided over $4.5 billion in funding and has an A+ rating from the Better Business Bureau (BBB). To apply, you need to fill out an online application and wait for a funding specialist to contact you for a consultation on your loan options.

Loan amounts

Up to $150,000 for equipment financing

Minimum requirements

The business must operate for at least six months and generate at least $250,000 in annual sales.

OnDeck

OnDeck is a fast funder with an A+ rating from the BBB and has provided over $15 billion in funding to businesses. Its website states that the application process takes only 10 minutes to complete, and it offers same-day funding.

Loan amounts

$5,000 to $250,000

Minimum requirements

To be eligible for a business loan, you must have been in business for at least one year, have an annual revenue of $100,000 or more, have a business bank account, and a personal FICO score of at least 625.

Cardiff

For over 19 years, Cardiff has been a player in the business financing industry and has provided more than $8 billion in funding to businesses. This lender boasts an A+ rating on the BBB. As per their website, Cardiff does not perform any hard credit checks on personal scores when evaluating loan applications or determining eligibility.

Loan amounts

Up to $250,000

Minimum requirements

At least six months in business with a gross annual revenue of $100,000 or more.

Crest Capital

Since 1989, Crest Capital has been serving small- and medium-sized businesses with quick application decisions, making it an attractive option for those seeking prompt decisions.

Loan amounts

$5,000 to $500,000

Minimum requirements

To be eligible for a loan, you must have been in business for at least two years, be profitable, and have no bankruptcies on your record.

Kapitus

Since its launch in 2006, Kapitus has provided over $5 billion in funding to businesses across various industries and types, including beverage and breweries, dental and medical businesses, salons, laundromats, and restaurants.

Loan amounts

$15K minimum for non-titled equipment; $25K minimum for titled equipment

Minimum requirements

You must have been in business for at least three years (one year if you have a credit score of 775 or higher).

Is equipment financing tax deductible?

Businesses can deduct the entire or partial cost of equipment purchases under Section 179 of the IRS Tax Code, but they must do so in the year the equipment was financed.

In the initial year of your business, you can enjoy a significant tax advantage due to the accumulation of other substantial expenses.

It is advisable to consult with a tax professional prior to beginning the deduction process to determine if your business qualifies and which purchases can be written off.

Pros and cons of equipment financing

Consider the advantages and disadvantages of equipment financing loans before applying for one.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their money. Each article is crafted by our team of expert writers and editors, who possess extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, our content is created independently by our team, without any input from our commercial team or external third parties. We uphold the highest journalistic standards and ethics. For more information on how we select the best bad credit small business loan lenders, please refer to our methodology.

Our methodology

CNBC Select evaluated a variety of U.S. small business loan lenders offering equipment financing options to determine the best equipment financing options. However, we did not consider business lines of credit, invoice factoring/financing, or merchant cash advances since they either have a lengthy application process or operate differently than traditional term loans or equipment financing loans.

We compared each equipment financing option on a range of features, including:

Minimum and maximum loan amounts
Credit score needed
Application requirements
Streamlined application process
Fund disbursement
Customer support
Better Business Bureau rating
Customer reviews, when available

The interest rates and monthly payments for equipment financing and small business loans can vary and may change without notice, but once you accept your loan agreement, a fixed-rate APR will ensure that your interest rate and monthly payment remain consistent throughout the loan term. Your APR, monthly payment, and loan amount are determined by your credit history and creditworthiness.

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