Best Equipment Leasing Companies for Small Businesses

For many small businesses, acquiring essential equipment through leasing can be a smart and affordable strategy. Equipment leasing companies provide financing solutions that allow you to use machinery, vehicles, or technology without the hefty upfront cost of purchasing.

In this article, we’ll explore the top equipment leasing companies for small businesses in the U.S., highlighting what they offer in terms of pricing, customer satisfaction, and approval requirements. We’ll also cover how to choose the right lender and answer common FAQs.

How to Choose the Right Equipment Leasing Company

Not all equipment financing providers are the same. When comparing equipment leasing companies for small businesses, consider several key factors to ensure you’re getting the best deal and service:

Rates and Fees: Look at interest rates (or factor rates for leases) and any fees. Lower APRs or factor rates and minimal fees will reduce your cost. For instance, some lenders offer starting rates around 5–7%, while others might charge higher rates especially for lower credit profiles.
Loan/Lease Amounts and Terms: Ensure the company can fund the amount you need and offer suitable repayment terms. Top providers offer financing anywhere from $150,000 up to $5 million or more, with repayment periods ranging from 2 to 10 years.
Speed of Approval and Funding: If you need equipment quickly, pay attention to approval times. The best companies provide quick turnaround – some approve applications within hours and fund within a day or two.
Eligible Equipment and Industries: Check if the lender finances the type of equipment you need (e.g. heavy machinery, vehicles, medical or restaurant equipment) and is open to your industry. Many top lenders are flexible and finance both new and used equipment across various sectors.
Qualification Requirements: Review the minimum credit score, time in business, and revenue requirements. Some lenders require at least 600–650 credit scores and 2+ years in business, while others work with startups and lower credit (even down to ~500). Make sure you meet or exceed these to improve approval odds.
Down Payment Policies: Some equipment financing deals require a down payment (often 0%–20%). If you prefer to avoid upfront costs, look for companies advertising 0% down or 100% financing.
Customer Reviews and Support: Consider user reviews and ratings. A company with strong customer satisfaction, responsive service, and transparency can make your leasing experience smoother. For example, a provider with an A+ BBB rating or Trustpilot score above 4.5/5 is generally a positive sign.

By weighing these factors, you can select an equipment leasing partner that best fits your business needs and financial situation. Next, let’s look at some of the best equipment leasing companies and how they compare on these criteria.

Comparison of Top Equipment Leasing Companies (2025)

The table below provides an at-a-glance comparison of several top equipment leasing companies and their key terms:

Company	Max Funding	Starting APR/Rate	Max Term	Funding Speed	Min Credit Score
Smarter Finance USA	$1 million	~6%	5 years	2–4 days	None (600+ recommended)
Clarify Capital	$5 million	~6%	~6 years	1–2 days	550
Blue Bridge Financial	$500,000	5.99%	5 years	~4 hours	610
US Business Funding	$50 million	~6%	10 years	~24 hours	600+
Balboa Capital	$500,000	~5%	5 years	Same-day	620+
Crest Capital	$500,000	~7%	7 years	1–2 days	650
eLease	$500,000	~8%	5 years	~1–2 days (varies)	500 (flexible)
National Funding	$150,000	~15%	5 years	~24 hours	600
Lendio (Marketplace)	$5 million	~7.5%	10 years	As fast as 24 hrs	520

Note: APRs for leases are often given as factor rates; for example, a factor rate of 1.1 roughly translates to a ~10%+ interest cost depending on term.

The “Min Credit Score” indicates the typical minimum personal credit for approval; actual requirements may vary with other strengths (revenue, down payment, etc.). Funding speed assumes a complete application with required documents.

Next, we’ll dive into each of these companies, including their unique features, pricing, user reviews, and approval criteria.

Smarter Finance USA – Flexible Funding with Personalized Service

Smarter Finance USA is often cited as one of the best equipment leasing companies for small businesses that need flexibility. As a broker with a network of ~40 lenders, Smarter Finance can match borrowers with financing for a wide range of equipment – from trucks and heavy machinery (cranes, excavators, bulldozers, etc.) to medical and restaurant equipment. This broad network boosts your odds of approval and helps find competitive rates.

Loan/Lease Amounts: $10,000 up to $1 million can be financed, making it suitable for both small purchases and large capital equipment.
Rates: Starting APRs are around 6%, with typical rates ranging up to 20%+ for riskier profiles. Down payments vary from 0% to ~35% depending on your credit and the equipment.
Approval Requirements: Smarter Finance has no formal minimum credit score or time in business requirement, which is rare in this industry. Even startups and those with credit scores below 600 are considered – though a credit score of 600+ is recommended to improve approval chances.

They review each application case-by-case, so strong revenue or a larger down payment can compensate for weaker credit.
Speed: Applications are quick and funding often arrives within 2–4 days of approval, making it relatively fast.
Customer Service: Smarter Finance USA is known for high-touch, personalized service. It has a reputation for working closely with borrowers – a combination of great customer service and competitive rates is part of what makes it a top choice.

Many small business owners praise the company’s flexibility and supportiveness in navigating the financing process.

Overall, Smarter Finance USA is an excellent choice if you need flexible qualifications. Whether you’re a startup or have less-than-perfect credit, Smarter Finance will work to find an equipment financing solution tailored to you. It was even ranked as the “Best Overall” by some reviewers due to its mix of flexibility, favorable terms, and service quality.

eLease – Accessible Leasing for Lower Credit Scores

If your credit score is a concern, eLease could be a useful option. Unlike many traditional lenders, eLease specializes in equipment leasing for businesses with less-than-perfect credit, including startups and even those that have faced past financial difficulties.

Credit Flexibility: eLease is willing to work with subprime credit profiles. They have financed customers with personal credit scores around the 500s. They also consider businesses that other lenders shy away from – for example, startups, companies recovering from bankruptcy, or those acquiring a business. This flexible underwriting makes eLease stand out.
Lease Terms: Funding amounts go up to about $500,000 and terms up to 5 years. Starting rates are around 8% APR, and because eLease takes on riskier clients, rates might be higher for those with poor credit. In some cases, a personal guarantee may be required to secure the lease.
Approval Considerations: While eLease is accommodating, note that if the equipment you need is in an industry category with high default rates, approval can be more challenging. They’ll assess the overall strength of your application – so even if credit is low, showing decent revenue or providing collateral could improve your chances.
User Experience: Businesses appreciate that eLease gives them a chance when banks will not. The process is designed to be straightforward. However, because they deal with riskier loans, expect thorough evaluation and potentially slightly higher costs as the trade-off for easier approval.

In summary, eLease is a solid choice for small businesses that need equipment leasing but are worried about credit qualifications. They effectively fill a niche by offering financing to those who might otherwise be left out, providing a vital lifeline to get needed equipment and keep the business running.

US Business Funding – Best for Large Financing Needs

As the name suggests, US Business Funding can handle big financing requirements. This company offers equipment financing and leasing up to very high limits – as high as $50 million in funding, far above most competitors. If you need to lease expensive equipment or multiple pieces of equipment at once, US Business Funding might be your go-to.

Funding Capacity: With up to $50 million available, they are ideal for businesses planning major equipment investments or rapid expansion. Even for more typical needs, they finance smaller amounts as well (their loans often start around $10,000 up).
Approval Process: Naturally, getting approved for a multi-million dollar lease will involve substantial paperwork. US Business Funding advises applicants to prepare financial statements (tax returns, balance sheets, P&Ls, bank statements) and a business plan when seeking large sums. Having these documents ready can streamline the process.
“App-Only” Program: For smaller equipment needs under $200,000, US Business Funding offers a simplified application-only program. This means you may just need to submit a basic application and the quote for the equipment, without extensive financial documentation, to get approved. This is a big plus for time-strapped small business owners.
Speed and Service: The company touts online applications that can be completed in under 10 minutes, with funding decisions and an assigned account manager who understands your industry. Often approvals are fast (funding in ~24 hours for many deals). They pride themselves on competitive rates (starting around 6%) and high approval rates.
User Reviews: US Business Funding has generally positive customer feedback. It reports a Trustpilot score of 9.1 out of 10 (equivalent to about 4.5/5 stars) based on over 125 reviews, highlighting strong customer satisfaction. Borrowers frequently mention quick turnaround and helpful service.

For companies that require large-scale funding or just want a dependable, full-service lender, US Business Funding is one of the top equipment financing companies. They combine the capacity to fund big tickets with programs that accommodate smaller needs, making them versatile. Just be prepared with documentation for bigger leases to take full advantage of what they offer.

Crest Capital – Fast Approvals with Easy Applications

Crest Capital is a long-established equipment financing company known for its fast and simple application process, especially for smaller financing amounts. If you’re looking for a quick turnaround and minimal hassle, Crest Capital is a strong contender. It’s often recommended for small businesses that need up to around $250,000 in equipment funding quickly.

No Financials Needed (under $250k): Crest can provide application-only approvals up to $250,000 – meaning you don’t need to submit tax returns or financial statements for those deals. They can often issue credit approval the same day for these applications, which is extremely convenient for time-sensitive equipment purchases.
Larger Financing: If your equipment needs exceed $250k, Crest still can help (they finance up to $500k or more), but you will then need to supply standard financial documentation (e.g. two years of financials and tax returns) to support the application. Even so, their process for larger deals is streamlined and decisions are relatively quick.
Credit & Requirements: Crest tends to favor applicants with decent credit. A minimum credit score around 650 is usually expected for approval. They also consider your time in business and industry type as part of the risk evaluation. Businesses with a few years of operation and solid credit history often find Crest’s approval process very smooth.
Rates and Fees: Rates can start around 7% or so for well-qualified borrowers. Crest offers various lease structures (from $1 buyouts to fair market value leases) to fit different needs. There is typically a small documentation or admin fee (around $275), but no hidden costs. They are quite transparent about terms.
Customer Satisfaction: Crest Capital enjoys overwhelmingly positive user reviews. The company holds an A+ rating with the BBB and reportedly a 4.64/5 average score there, with virtually no complaints filed.

It also has around 4.5/5 stars on other platforms and a 90%+ recommendation rate from past customers. This speaks to their reliability and service quality. Customers often praise the ease of the process and helpful staff.

In essence, Crest Capital is one of the top equipment financing companies for fast approvals. It’s especially convenient if you need a smaller lease processed quickly without digging up a mountain of paperwork. Their strong reputation and customer-centric approach make them a safe choice for many small businesses.

National Funding – Competitive Leasing with a Lowest Payment Guarantee

National Funding is a well-known small business lender that also offers equipment leasing with some unique perks. It’s frequently listed among the best equipment leasing companies for its combination of flexible offerings and customer-friendly guarantees. National Funding can finance a wide array of equipment types and has experience across industries from construction to healthcare.

Funding Range: National Funding provides equipment financing typically up to $150,000 for leases (and higher for certain loans). Terms usually go up to 5 years (60 months) for equipment leases.
Rates: Rather than a traditional APR, National Funding often uses factor rates starting at 1.10 (for excellent credit customers). That roughly translates to an APR in the low teens for top borrowers; in fact, typical APRs start around 15% for many clients.

While rates can be on the higher side, the company does offer early repayment discounts – meaning if you pay off your lease early, you could get a break on the remaining cost.
Approval Criteria: To qualify, National Funding generally looks for a minimum personal credit score of 600 (though some sources indicate 660 for certain products) and at least 6 months to 2 years in business, depending on the amount. They also require an annual revenue of about $250,000 or more.

These requirements are “strictly enforced” for their leasing program, so you need to meet them, but they are still attainable for many established small businesses. Additionally, a personal guarantee is typically required.
Unique Guarantee: National Funding stands out by backing its leases with a Lowest Payment Guarantee – if you find a better lease payment for the same equipment and terms, they promise to either beat it or pay you $1,000. This is a strong assurance of competitive pricing.
Speed and Service: Funding can be very fast – sometimes as quick as same-day approval and funding within 24 hours for qualified applicants. National Funding assigns each customer a funding specialist, providing a personalized touch to guide you through options. This hands-on support has earned them consistently high customer satisfaction ratings.
User Reviews: National Funding is highly rated by users. On Trustpilot it boasts a 4.7 out of 5 score with over 2,000 reviews, reflecting a strong track record. Borrowers often highlight the quick and easy process and helpful staff. (Do note that like many lenders, there are some reports of higher total costs, so always understand the terms fully.)

With its guarantee and customer-centric approach, National Funding is one of the top choices for equipment leasing, particularly if you want confidence that you’re getting a fair deal. Just ensure your business meets the revenue and credit benchmarks they require before applying.

Balboa Capital – Same-Day Equipment Lease Approvals

Balboa Capital is recognized as a fast and convenient equipment financing company. It was even named “best for ease of approval” by one business review in 2025. Balboa is suited for small businesses that value speed: it offers one-hour approval decisions during business hours and funding as soon as the same day in many cases.

Quick Process: During the work week (Mon–Fri, 7am–4pm Pacific), Balboa can process applications incredibly fast – often giving a credit decision in about an hour and, if approved, releasing funds that day. This speed is hard to beat, making Balboa ideal when you need to seize an equipment purchase opportunity immediately.
Financing Amounts: Balboa provides leases and loans up to $500,000 for equipment acquisitions. They finance both new and used equipment, which is great for finding bargains on secondhand machinery.
Requirements: To qualify, your business should have at least 1 year in operation and **$100,000+ in annual revenue】. A personal credit score of 620 or higher is usually needed – Balboa does tend to require moderately good credit. These requirements are a bit stricter than some online lenders, but still accessible to many established small businesses.
Rates: Balboa’s interest rates vary case by case; they don’t publicly state a fixed range. It’s known that rates depend on credit and term – stronger borrowers can get competitive rates, whereas those on the lower end of qualifying might see higher costs (some customers have reported relatively high effective APRs, so always get a quote).

There are no collateral requirements beyond the equipment itself, and they often don’t require large down payments.
Customer Feedback: On one hand, Balboa’s sheer volume of business and fast service wins them many happy customers who got funding when they needed it. However, user reviews online are mixed. Some clients complain about issues like unclear contract terms or aggressive collections if a payment is missed.

In fact, Balboa is not BBB-accredited and has had a number of complaints filed over the years. On Trustpilot, Balboa had a low rating (some reports indicate around 1–2 stars out of 5) with several negative reviews citing problems.

Pros: extremely fast approvals;

Cons: some customers report dissatisfaction with service or terms.
Bottom Line: If speed is your top priority and you have decent credit, Balboa Capital can be a lifesaver to get equipment financed quickly. Just be sure to read the contract terms carefully and compare the total cost. Balboa’s instant convenience can sometimes come with higher fees, so it’s best suited for situations where time is of the essence and the equipment will generate revenue to justify the cost.

Clarify Capital – Personalized Service and Hands-On Guidance

Clarify Capital is a business financing broker that shines in the customer service department. It’s known for providing a dedicated financing advisor to each client and guiding businesses through the loan or lease process with a personal touch.

For equipment financing, Clarify Capital has access to a large network of lenders (75+ partners) and can tailor solutions to a business’s specific needs.

Loan Network: As a broker, Clarify doesn’t fund deals directly but connects you with the right lender. Its extensive network means they can handle a wide range of equipment financing up to $5 million. Whether you need a small lease or something big, they likely have an option.
Terms: Starting APRs are around 6%, and typical repayment terms range from 2 to 6 years. Funding is relatively quick once matched – often within 1–2 days after approval. They strive to keep documentation minimal (usually a few months of bank statements will suffice to verify revenue).
Approval Requirements: Clarify’s minimum requirements are quite friendly: around 550 credit score, 6+ months in business, and roughly $120,000 annual revenue. These are lower thresholds than many direct lenders, meaning Clarify can help newer businesses or those with fair credit find a lender. They can also source 0% down payment deals if needed.
Service Quality: What really sets Clarify apart is service. They boast a 4.9/5 Trustpilot rating with 400+ reviews as of 2025, indicating extremely high customer satisfaction. Borrowers often mention that their Clarify advisor made the financing process much easier – handling paperwork, answering questions, and providing quick responses. This hand-holding can be invaluable if you’re not experienced with equipment loans.
Use Case: Clarify Capital is ideal if you want to compare multiple loan offers without doing the legwork yourself, and if you value having an expert guide you. It’s somewhat like having a concierge for your equipment financing.

Because they can present various offers, you can choose the one with the best rates or terms from their partners. There’s no cost to the borrower for using Clarify’s brokerage service (they are compensated by lenders), but always ensure any offer you accept is competitive in the market.

In summary, Clarify Capital is one of the top equipment financing companies for personalized service. They effectively mix the benefits of an aggregator (multiple options) with a boutique advisory feel. This makes the financing journey less stressful and more transparent for small business owners.

Blue Bridge Financial – Inclusive Financing Across Industries

Blue Bridge Financial is a direct lender that has made a name by being very inclusive in terms of the industries and equipment it will finance. Some lenders avoid certain sectors or very specialized equipment, but Blue Bridge tends to be more accommodating. They are also noteworthy for their rapid funding ability, sometimes funding a deal in mere hours.

Industry Inclusivity: Blue Bridge prides itself on serving a wide range of industries. Whether you run a trucking company, a dental practice, a construction firm, or a restaurant, Blue Bridge likely has experience financing your equipment needs.

This broad approach means they don’t shy away from less common requests. They finance both heavy-duty equipment and soft assets.
Loan Sizes and Terms: Blue Bridge offers equipment financing up to about $500,000 per transaction. Their starting interest rates are around 5.99% APR for well-qualified borrowers. Repayment terms typically go up to 5 years (60 months), which is standard for equipment leases/loans.
Lightning-Fast Funding: Impressively, Blue Bridge can deliver funding extremely fast – sometimes in as little as 4 hours after approval. This suggests their credit process is highly efficient for smaller deals. In practice, a lot of loans close within 1–2 days, which is still among the fastest in the market.
Approval Requirements: They usually look for a credit score of at least 610 for approval, and at least a year or two in business is preferable (though they may consider slightly younger businesses if other factors are strong).

Revenue requirements aren’t publicly stated, but ensuring your cash flow can support the lease payments is key. Blue Bridge might require a personal guarantee and possibly a lien on the equipment (standard practice).
Customer Experience: Because Blue Bridge is smaller than some big lenders, they often provide more personalized attention. Customers often work with a dedicated representative.

Reviews for Blue Bridge are generally positive, noting that they were able to finance equipment when other lenders wouldn’t. Their interest rates are competitive, though not always the lowest – they balance cost with a willingness to approve a variety of deals.
When to Choose Blue Bridge: If you operate in an industry that’s been turned down by other financing companies, or if you need money extremely fast, Blue Bridge Financial is a top contender.

They combine reasonable rates with flexibility in what they finance. This inclusive approach and speed are why they’re frequently listed among the top equipment financing companies.

Lendio – Best Marketplace for Comparing Multiple Lenders

Lendio is not a lender itself but rather the leading small business loan marketplace in the U.S. It earns a spot among top equipment financing options because it allows you to shop offers from 75+ lenders with one application.

For a small business owner who wants to ensure they get the best rates and terms on an equipment lease or loan, Lendio can be extremely valuable.

Multiple Options with One Application: When you apply through Lendio (a free process), their platform and loan advisors will match you with a variety of equipment financing offers from banks, online lenders, and leasing companies.

This saves you time and increases your chances of finding a good deal. According to Lendio, they’ve facilitated over $16 billion in loans and have a network larger than almost any competitor
Loan Amounts and Terms: Through Lendio’s network, you can find equipment loans from around $5,000 up to $5 million. Starting rates are roughly 7–8% APR for the most qualified borrowers.

Terms range from 1 to 10 years depending on the lender and loan product. This means whether you need a short-term lease or a long-term loan, you’ll likely see an option on Lendio.
Qualification Range: Lendio is very startup-friendly. They have lending partners that can work with as low as a 520 credit score and even 0 months in business (startups).

Of course, strong credit (700+) and established businesses will get the best offers, but Lendio tries to cater to all ends of the spectrum. Generally if you have at least six months in business and ~$50k revenue, you’ll have several matches.
Speed: The application takes about 15 minutes online. After that, you can start seeing loan offers within hours. Funding speed will depend on the lender you choose – some can fund in a day or two (Lendio even has partners that do same-day funding), while banks may take longer. Lendio’s technology ensures the process is as quick as possible by using one standardized application for many lenders.
User Reviews: Lendio enjoys an excellent reputation. It has a Trustpilot rating of 4.7 out of 5 with over 21,000 reviews – an extremely high volume of satisfied customers.

Small business owners often praise the easy process and the helpfulness of Lendio’s loan specialists who assist along the way. Because Lendio is paid by lenders, they have an incentive to help you find a loan you’ll accept, but they are known for transparent and no-pressure service.
Consideration: One thing to note – Lendio will result in multiple offers, so be prepared to possibly field calls or emails from several lenders. This is part of the shopping process. But you remain in control to pick the best offer (or none at all if you’re not satisfied).

All in all, Lendio is an excellent option to identify the top equipment financing offer available for your business. It’s essentially a comparison shopping tool in the business finance space. For those not sure which direct lender to approach, starting with Lendio can illuminate what rates and terms you qualify for, without having to apply separately to many companies.

Other Notable Equipment Financing Providers

While we’ve covered many of the top equipment leasing companies for small businesses, there are a few other noteworthy providers and options to mention:

First Citizens Bank (CIT): CIT, now a division of First Citizens Bank, is a major player in equipment finance. Known for fast funding and transparent pricing, CIT offers equipment loans to both small and large businesses.

Banks like CIT can offer very competitive interest rates for well-qualified borrowers, and they provide a full suite of lease options (fair market value leases, $1 buyouts, etc.) similar to what we saw on their site. However, they typically cater to more established businesses and larger “ticket” deals.

If your company has strong credit and you’re financing, say, over $250,000, exploring a bank like CIT or Wells Fargo Equipment Finance could yield low rates. Keep in mind banks will require thorough financials and the approval process might be slower than online lenders.
Triton Capital: Triton is a lender that stands out for low starting rates – advertised as low as 5.99% APR for equipment loans. They will finance up to $250k and even consider startups, though they do require 2 years in business for their best deals.

One unique aspect is Triton’s long pre-approval period – you can get pre-approved and lock in an offer for a longer window while you shop for equipment. The catch is a fairly high revenue requirement (~$350k/year) for approval.
JR Capital: JR Capital specializes in equipment financing up to very large amounts (they advertise up to $10 million) and requires no down payment. They are a good choice for businesses that need expensive equipment and want to conserve cash.

JR Capital’s typical borrowers have 2+ years in business and credit scores above 620. Rates range roughly from 6% to 18%, depending on credit. If you have heavy equipment or vehicles to finance, JR Capital’s one-page application (for deals under $350k) and fast funding (within 48 hours) are appealing.

Each business’s needs are unique. The best equipment financing company for you depends on your situation – credit score, how much funding you need, how fast you need it, and your industry. Many small businesses even maintain relationships with multiple lenders (for example, a bank for large low-rate loans, and an online lender for quick smaller leases).

Below, we provide answers to some frequently asked questions about equipment leasing to help you make an informed decision.

FAQs

Q.1: What are equipment leasing companies and how do they work?

Answer: Equipment leasing companies are financing firms (often non-bank lenders) that lease machinery or equipment to businesses. Essentially, the company (lessor) purchases the equipment and lets you (the lessee) use it for a specified period in exchange for monthly payments.

At the end of the lease term, depending on the lease type, you may return the equipment, renew the lease, or buy the equipment (for a token amount like $1 or fair market value). Leasing is like renting, but usually with an option to own at lease-end.

These companies make money through the interest and fees built into your lease payments. For businesses, leasing is a way to use equipment without paying the full price up front, and often the lease payments are tax-deductible as an operating expense.

Q.2: Is it better to lease equipment or buy it outright?

Answer: It depends on your situation. Leasing and buying each have pros and cons. Leasing equipment typically means lower monthly payments than a loan, and you don’t need a large down payment. It’s advantageous if you only need the equipment for a limited time or want to upgrade frequently.

Also, as mentioned, lease payments can usually be expensed on your taxes, simplifying deductions. Buying equipment (financing with a loan) means you usually have higher monthly payments (and often ~10-20% down), but you own the asset and can claim depreciation or Section 179 tax deductions for the purchase.

Ownership can be better if the equipment has a long useful life and good resale value. In short: if you want to keep the item long-term and build equity in it, buying is often better. If conserving cash and having flexibility is more important, leasing can be the better route.

Q.3: What credit score is needed to get equipment leasing for a small business?

Answer: The required credit score varies by lender. Many equipment leasing companies for small businesses look for at least a fair credit score – around 600 or above. For example, National Funding requires roughly 600, Balboa 620, Crest 650, etc., as a baseline in many cases.

However, there are lenders that work with lower scores: some (like eLease or certain Lendio partners) may approve credit in the 500s. Keep in mind that with a lower score, the cost of financing will likely be higher (interest rates, fees) and the lender may ask for additional assurances like a larger down payment or collateral.

If your credit score is below 600, you might want to seek out specialized financing companies that advertise “bad credit OK” or consider using a co-signer if possible. Improving your personal and business credit will broaden your options and get you better terms over time.

Q.4: What are the usual approval requirements for equipment financing?

Answer: Approval requirements typically include a combination of credit score, time in business, and revenue. Most top lenders require at least 6 months to 2 years in business and a minimum annual revenue (for example, $100k–$250k).

As discussed, credit score cutoffs often range from ~600 to 650 for many lenders. You’ll also need to provide some documentation: usually an application form, bank statements, and a quote or invoice for the equipment. Some lenders may request tax returns and financial statements (especially for larger loans or if your credit is borderline).

Additionally, almost all equipment financing for small businesses will require a personal guarantee from the owners – this is a promise that you’ll personally repay the debt if the business can’t. If you meet the basic criteria and the equipment is necessary for your business operations, your chances of approval are good.

Each lender weighs these factors differently: for instance, one might be more flexible on time-in-business if your revenue is strong, while another might accept lower revenue if you have excellent credit. It’s wise to ask any prospective lender what their key criteria are before applying.

Q.5: Can I lease used equipment for my business?

Answer: Yes, many equipment leasing companies will finance used equipment. In fact, leasing used equipment is common in industries like construction and transportation where buying new is extremely expensive. Lenders such as National Funding, Smarter Finance USA, Balboa Capital, and others explicitly state that they finance used equipment.

The key conditions are usually: the equipment should have a useful life that exceeds the lease term (so it’s still in good working condition), and sometimes it must be purchased from a reputable dealer or verified source (not something unusable or obsolete).

The lender may require an appraisal or inspection of a used asset. Interest rates on used equipment leases might be a bit higher or terms slightly shorter (because used items have less collateral value).

But overall, if the used machine or vehicle is in decent shape, you can absolutely get a lease for it. It’s a smart way for small businesses to save money – you’re paying a lower price for the equipment and spreading payments out, preserving more cash flow.

Q.6: Are equipment lease payments tax-deductible for my small business?

Answer: In most cases, yes – equipment lease payments are tax-deductible as a business expense. Lease payments are typically treated as operating expenses on your income statement, so you can deduct them in the period you pay them.

This can provide a significant tax benefit because you’re using pre-tax dollars to cover the cost of equipment use. However, note that because you’re deducting the lease expense, you cannot claim depreciation on the leased equipment (since you don’t own it).

One exception is if you have a certain type of lease (a capital lease) that is essentially a financed purchase – in that case, you might be able to take a Section 179 deduction on the equipment cost in the first year, even though it’s structured as a lease.

The tax rules can vary based on lease structure and jurisdiction, so it’s wise to consult with a tax professional. But generally, for true leases, every payment is fully deductible, which is a big reason many businesses choose to lease equipment.

Always double-check with your accountant on how to record and deduct your specific lease, to take full advantage of the tax benefits.

Conclusion

Choosing the right partner for equipment financing can significantly impact your business’s growth and cash flow management. The equipment leasing companies we’ve discussed above offer a variety of strengths – from fast approvals and flexible credit requirements to large funding capacity and personalized service.

As of 2025, small businesses have more options than ever to lease or finance equipment on terms that work for them. Before you sign on the dotted line, be sure to evaluate your business’s goals, financial health, and the specific equipment needs. Compare offers from a few of the top providers if possible.

Consider the total cost (interest or factor rate, fees, and tax implications) and not just the monthly payment. Remember that lease payments are often fully deductible as a business expense, which can help your after-tax cost, though you won’t be able to claim depreciation on leased assets.

Each of the top equipment leasing companies for small businesses highlighted here has helped entrepreneurs obtain crucial machinery, technology, or vehicles to run their operations. By doing your due diligence and selecting the right lender for your scenario, you can acquire the equipment you need while keeping your finances healthy – positioning your business for success and growth.