Equipment Financing for Small Businesses — Fund the Equipment Your Business Needs.
Construction rigs, restaurant ovens, medical devices, trucks — whatever equipment drives your revenue, we match you across a network of funders to get it financed. Fixed terms, predictable payments, and the equipment itself typically serves as collateral.
What is equipment financing?
Equipment financing is funding used to purchase or lease business equipment, repaid over a fixed term with predictable payments. Unlike a general working capital loan, the equipment itself typically serves as collateral — which makes this type of financing more accessible, even for business owners with imperfect credit.
The most common structures are equipment term loans (you own the equipment outright after the final payment), equipment leases (lower payments with the option to buy, return, or upgrade at the end), and SBA equipment loans (government-backed, lower rates, longer approval timelines).
Berkman Financial is a broker, not a direct lender. Your advisor takes your equipment financing request to a network of funders and brings back the best available options — so you compare offers instead of settling for the first one.
How equipment financing works.
You apply.
Fill out a short application and provide three months of bank statements plus a quote or invoice for the equipment you need. Takes about five minutes.
We match offers.
Your Berkman advisor sends your file to our network of equipment funders. Within hours, you see multiple offers side by side — rates, terms, and monthly payments.
You accept and sign.
Pick the equipment financing offer that fits your budget and cash flow. Sign electronically. No branch visits, no stacks of paperwork.
Equipment gets funded.
Funds are sent directly to the vendor or to your business account, depending on the deal structure. Most equipment financing closes within two to five business days.
Want the full breakdown? See how our funding process works.
Who qualifies for equipment financing?
Because the equipment serves as collateral, qualification standards are more flexible than unsecured products. If your business generates consistent revenue and has an equipment need, you are likely eligible.
Minimum requirements
- 6+ months in business
- $10,000+ in monthly revenue
- Active U.S. business bank account
- No open bankruptcies
- Credit scores from 550+ accepted
Startups with strong revenue or the ability to make a larger down payment may also qualify. Your advisor will identify the best path based on your specific situation.
Benefits of equipment financing.
Preserve your working capital.
Instead of draining cash reserves on a large equipment purchase, spread the cost over a fixed term. Keep your working capital available for payroll, inventory, marketing, and the daily expenses that keep your business running.
Equipment as collateral.
The equipment itself secures the financing in most cases. That means you typically do not need to pledge personal assets, your home, or other business property. Lower lender risk translates to broader approval and better terms.
Fixed, predictable payments.
Unlike revenue-based products where payments fluctuate, equipment financing comes with a fixed monthly payment for the life of the term. You know exactly what you owe every month, which makes budgeting straightforward.
Potential tax advantages.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment in the year it is placed in service. Consult your tax advisor, but equipment financing may offer meaningful deductions.
Fund in days, not months.
Traditional bank equipment loans can take weeks. Through Berkman's network, most equipment financing closes in two to five business days. When a piece of equipment is available now and waiting means losing it, speed matters.
Finance new or used equipment.
Our network funds both new and used equipment. Whether you are buying from a dealer, a private seller, or upgrading a piece of machinery you found at auction, equipment financing covers it.
Equipment financing vs. leasing vs. paying cash.
| Equipment Financing | Equipment Lease | Paying Cash | |
|---|---|---|---|
| Ownership | Yes, after final payment | Optional (buyout at end) | Immediate |
| Upfront cost | 0–20% down payment | First and last payment | Full purchase price |
| Monthly payments | Fixed for the term | Fixed, typically lower | None |
| Tax treatment | Section 179 deduction possible | Lease payments deductible | Depreciation over time |
| Flexibility | Own and modify freely | Return, upgrade, or buy out | Full control |
| Best for | Long-term equipment you will keep | Equipment you upgrade often | Businesses with strong cash reserves |
Your Berkman advisor can model each scenario for your specific situation — including total cost of ownership, monthly cash flow impact, and tax implications.
Industries and equipment types we fund.
If the equipment generates revenue for your business, our network can likely finance it. These are the industries and equipment types we fund most often.
Don't see your industry? Browse all industries we fund.
How much does equipment financing cost?
Equipment financing rates depend on your credit profile, the type and age of the equipment, the term length, and the down payment. Because the equipment serves as collateral, rates are typically lower than unsecured products like merchant cash advances.
Rates across our network typically range from 5.99% to 25%, depending on the borrower profile. Stronger credit, longer time in business, and higher-value equipment generally unlock the best terms.
Every offer from Berkman Financial includes the rate, monthly payment, total cost, and term length. You see the full picture before you commit to anything.
How to apply for equipment financing.
Applying for equipment financing at Berkman Financial takes about five minutes. There is no hard credit pull, no lengthy documentation, and no commitment until you accept an offer.
What you need
- Legal business name and EIN
- 3 months of business bank statements
- Equipment quote or invoice
- Owner name and contact info
What you don't need
- Perfect credit score
- Years of tax returns
- Real estate or personal collateral
- In-person meetings or branch visits
What happens next
- Soft credit pull only (no score impact)
- Advisor reviews your file in hours
- Side-by-side offer comparison
- Sign and fund in days
What businesses use equipment financing for.
Replacing aging equipment.
When a critical piece of equipment is unreliable, costing more in repairs than it is worth, or slowing your operation down, equipment financing lets you replace it without wiping out your cash reserves.
Expanding capacity.
A second oven, another truck on the road, an additional CNC machine. When demand outpaces your current capacity, financing the equipment to grow makes more sense than turning away revenue.
Opening a new location.
Outfitting a new restaurant, clinic, or shop requires significant equipment investment. Equipment financing lets you spread that cost over time so you are not cash-strapped on day one.
Upgrading technology.
Newer equipment is often more efficient, safer, and better for your bottom line. Financing the upgrade lets you capture those savings immediately instead of waiting until you can pay cash.
Seasonal preparation.
Landscaping companies gearing up for spring, restaurants preparing for tourist season, construction firms tooling up before a busy summer. Equipment financing lets you invest ahead of the revenue curve.
Refinancing existing equipment debt.
If you financed equipment at a high rate when your business was newer, refinancing with better terms can lower your monthly payment and free up cash flow. Your advisor can evaluate whether a refinance makes sense.
Risks and considerations.
Equipment financing is one of the most straightforward funding products available, but it is not without trade-offs. Understanding them helps you make a smarter decision.
Equipment depreciation
Some equipment loses value faster than you pay down the balance. If you need to sell or trade in early, you may owe more than the equipment is worth. This is most common with technology and vehicles.
Commitment to fixed payments
Unlike revenue-based products where payments flex with your sales, equipment financing requires the same payment every month regardless of how business is going. Make sure your margins can support it through slower periods.
Potential down payment
Some deals require a 10–20% down payment, especially for used equipment, newer businesses, or lower credit profiles. Your advisor will tell you up front whether a down payment is required.
Equipment-specific use
Equipment financing funds are tied to the specific equipment purchase — they cannot be used for payroll, marketing, or general working capital. If you need flexible-use funds, a merchant cash advance or line of credit may be a better fit.
Equipment financing questions.
Can you get equipment financing with bad credit?+
Yes. Because the equipment itself typically serves as collateral, lenders take on less risk, which makes approval easier even with imperfect credit. Credit scores from 550 and up are considered across our network. Revenue history and the equipment value carry more weight than credit alone.
What credit score do you need for equipment financing?+
Most funders in our network work with credit scores from 550 and up. Stronger scores unlock better rates and longer terms, but equipment collateral offsets credit risk significantly. Your Berkman advisor will match you to the funders best suited to your credit profile.
Is it better to lease or finance equipment?+
It depends on your situation. Financing builds ownership equity and may qualify for Section 179 tax deductions. Leasing keeps monthly payments lower and makes it easier to upgrade when technology changes. Your advisor can model both options side by side so you can compare total cost.
How fast can you get equipment financing?+
Through Berkman, most equipment financing funds within two to five business days after documentation is complete. Some deals close faster depending on the equipment type, deal size, and how quickly you provide the required documents.
Can startups get equipment financing?+
Yes, though terms vary. Startups with at least six months of revenue history or a strong equipment quote often qualify. Some funders accept a larger down payment in lieu of longer operating history. Your advisor will identify which options fit your situation.
Does the equipment serve as collateral?+
In most cases, yes. The equipment itself secures the financing, which means you typically do not need to pledge personal assets, real estate, or other business property. This is one of the reasons equipment financing is more accessible than unsecured products.
What equipment can be financed?+
Nearly any revenue-generating business equipment: construction machinery, restaurant equipment, medical and dental devices, trucks and trailers, IT infrastructure, manufacturing equipment, agricultural machinery, and more. If the equipment has a defined value and a useful life, it can likely be financed.
How much can you finance?+
Berkman's network funds equipment from $10,000 to $2,000,000. The amount depends on the equipment value, your business revenue, time in business, and your credit profile. Your advisor will tell you the maximum you qualify for before you commit.
Get equipment financing today.
Five-minute application. Multiple offers compared side by side. Funding in days. One named advisor from start to finish. Join 10,000+ small businesses that have funded with Berkman Financial since 2015.
Not sure if equipment financing is right for you? Compare all business funding options.
Need faster, flexible-use capital? Merchant cash advance funds same day. Waiting on invoices? Invoice factoring turns receivables into cash.
Want to learn more? Read our essential guide to equipment loans.