The Complete Equipment Financing Guide

In This Article

• What Is Equipment Financing?
• How Does Equipment Financing Work?
• What Equipment Can Be Financed?
• Equipment Financing Rates & Terms
• How to Qualify for Equipment Financing
• Equipment Financing vs. Equipment Leasing
• Tax Benefits of Equipment Financing
• Why Use a Broker Like Brobas Capital?
• Pros & Cons
• vs. Equipment Leasing vs. Financing

What Is Equipment Financing?

Equipment financing is a business loan tied to a specific piece of equipment. The equipment is the collateral. That's the whole game — because the lender can take the asset back if things go sideways, they take less risk, which means you get a better rate than you would on an unsecured loan. We close deals on trucks, trailers, MRI machines, dental chairs, excavators, CNCs, restaurant lines, even car wash systems. If a business uses it to make money and it has a serial number, somebody will finance it. The loan term usually matches the useful life of the equipment, which is why a truck might get 72 months and a server rack only gets 36.

How Does Equipment Financing Work?

Here's the actual flow. You find the equipment. You send us a quote or invoice. We run your file against 500+ lenders, pick the ones that fit your credit and industry, and get you offers — usually within 24-48 hours. You sign, we wire the dealer, the dealer hands you the equipment. From there it's fixed monthly payments for 24-84 months. Down payment is usually $0-20% — depends on your credit, your time in business, and what you're buying. Some lenders will defer your first payment 60-90 days if your equipment needs install time, and a few will do step-up payments that ramp as your revenue grows. Most operators don't know those structures exist because their bank doesn't offer them. We do.

What Equipment Can Be Financed?

Short answer: almost anything you'd use to run a business. Long answer — Class 3-8 trucks, every type of trailer (dry van, reefer, flatbed, lowboy), excavators, dozers, cranes, loaders, MRI and CT scanners, dental and surgical equipment, full restaurant build-outs, CNCs, presses, IT infrastructure, ag equipment, salon and spa chairs, gym equipment, car wash tunnels, laundromat machines, HVAC, solar, even mobile billboards. New and used both work. We've placed deals as small as $10K and as large as $5M+. The weird stuff — niche equipment from obscure manufacturers — is where it gets harder, and that's where having a broker matters more than ever, because one bank will say no and the next one will say yes for reasons that have nothing to do with you.

Equipment Financing Rates & Terms

Real rates I'm seeing right now: I closed a deal last month for a fleet owner in Illinois at 6.5% on three trailers — 720 score, 6 years in business, 10% down. Same week I had an owner-operator out of Houston with a 690 score get a Cascadia at 8.2% with 15% down. Different week, different file, a startup with a 560 score got financed at 21% on a lease-to-own, refinanced 14 months later at 12% once he had bank statements showing real revenue. So when somebody tells you "rates are 6%" or "rates are 18%" — they're both right, depending on your file. Rough bands: 700+ FICO with 2+ years in business sees 5-9% on most equipment. 600-699 sees 9-15%. Sub-600 sees 15-25%, sometimes higher on lease-to-own. Terms run 24 months for fast-depreciating tech up to 84 months for heavy iron. Almost everything is fixed rate — your payment doesn't move.

How to Qualify for Equipment Financing

Lenders look at four things and weigh them differently depending on the program. Credit score is the headline number — 580 gets you in the door, 680 gets you the better stuff, 720+ unlocks bank-tier pricing. Time in business is the underrated one. Two years operating moves you a full tier even if your credit didn't change. Revenue matters because the underwriter is going to do a back-of-the-envelope: can you actually afford the payment? The rule of thumb most desks use is your equipment payment should stay under 10-15% of monthly revenue. Then there's the equipment itself — newer and from a real dealer financing better than 12-year-old gear off Marketplace. Documents you need: license, EIN, last 3 months of bank statements (PDFs from the bank, not screenshots — lenders reject screenshots all day), the equipment quote, and a voided check. That's it for most deals under $250K.

Equipment Financing vs. Equipment Leasing

Honestly? For most operators I talk to, financing wins. You build equity, you own the asset, you get Section 179 — which is a real number that I'll show you in a second. Leasing makes sense in two specific scenarios: you're running tech that'll be obsolete in three years (laptops, scanners, certain medical imaging), or you're a fleet that genuinely refreshes equipment on a 2-3 year cycle and wants the lowest possible monthly. For everyone else, an operating lease quietly costs more over the life of the equipment because you're paying for use without ever owning the thing. The exception is a $1-buyout lease (sometimes called an EFA) — that's legally a lease but functionally a loan, and it qualifies for Section 179. Lower down, ownership at the end. We use that structure a lot.

Tax Benefits of Equipment Financing

Section 179 is the biggest reason most owners finance instead of pay cash. The 2026 limit is $1,220,000 — meaning you can deduct the full price of qualifying equipment from your taxable income in the year you put it in service. Real example: a guy I work with bought a $145,000 truck last December. Combined federal + state bracket around 33%. He saved roughly $48,000 in taxes that April. Effectively the government covered a third of his truck. The truck has to be in service by December 31 to count for that year — not "ordered," not "sitting on the lot," actually delivered and being used. Financed and lease-to-own both qualify. Pure operating leases don't — you can only deduct the lease payments. Talk to your CPA before you sign anything in Q4. The deadline is real and it costs people every year.

Why Use a Broker Like Brobas Capital?

Look, here's the thing your bank won't tell you. They have one program. If you fit it, great — you get one offer. If you don't fit, the answer is no, and they don't call other lenders for you. We're plugged into 500+ lenders. One application, your file goes everywhere it can win, and we surface the best 2-3 offers for you to pick from. We don't charge you a dime — the lender pays us when your deal funds. The other thing nobody talks about: we've seen what every desk approves and declines for the last decade. So when your file is borderline, we know which lender actually likes your industry, your credit profile, your state. That's not something a Google search can tell you. Apply at /apply or call (773) 900-7576. Soft pull only to see what you qualify for.

Pros & Cons

Key Terms to Know

Best For

• Businesses buying trucks, trailers, or heavy equipment
• Companies wanting to preserve cash while acquiring assets
• Operators looking to take advantage of Section 179 deductions
• Businesses with 580+ credit and 1+ year operating history
• Anyone comparing multiple lender offers for the best deal

Leasing offers lower payments and flexibility to upgrade, while financing builds equity and offers tax deductions. If you'll use the equipment for its full life, financing is usually cheaper overall. If you need to stay current with technology, leasing makes more sense.