Many companies cannot function without the right equipment. Some equipment helps with day-to-day operations, while other equipment enables companies to explore growth opportunities. Equipment costs considerable money, but not every company can qualify for financing at a traditional bank. Equipment financing companies cater to these businesses. They provide businesses with sufficient funding for equipment purchases.
Quicklook: Best Equipment Financing Companies
- Best For Construction and Environmental Industries: Triumph Commercial Finance
- Best For Small Businesses: Currency
- Best For Software Financing: Crest Capital
- Best For Sole Proprietors and LLCs: CIT
4 Best Equipment Financing Company Options
Which equipment financing companies make the most sense for your business? Understanding each companies’ perks can help you save thousands of dollars when financing equipment. Some equipment financing companies will perfectly fit your needs and assist with business growth. These are some of our favorite equipment financing companies that can provide significant capital for your business.
Triumph Commercial Finance
Triumph Commercial Finance specializes in hard-working industries that often lack financial support from traditional banks. The company provides asset-based lending to businesses in the transportation, construction, and environmental industries.
Best For: Construction and Environmental Industries
Location: Dallas, TX
Same-Day Funding: Yes
Collateral Requirements: Yes, assets within the company are used as collateral.
Credit Score Requirements: Yes. The company does not specify its range but says it accepts many businesses normally shunned by traditional banks.
Repayment Terms: Information not provided
Loan Range: Information not provided
Annual Revenue Requirement: Information not provided
Special Features:
- Customized insurance programs for businesses
- Their digital mortgage application incorporates the latest technology
- A fuel card program to save your fleet money at the pump
Benefits:
- Borrowers get relatively easy access to the CEO
- Custom made solutions for each business
- Quick access to capital
Disadvantages:
- Not licensed in all states
- Mortgage rates and lending fees are not publicized
Currency
Currency provides quickly accessible loans. The company caters to established businesses with growing revenue and good credit. American Trailer World, TractorHouse, and eBay are some of their clients.
Best For: Small Businesses
Location: Scottsdale, AZ
Same-Day Funding: No
Collateral Requirements: Yes, assets within the company are used as collateral.
Credit Score Requirements: A minimum FICO score of 650
Repayment Terms: 72 months
Loan Range: Up to $500,000
Annual Revenue Requirement: Information not provided
Special Features:
- Approval in minutes
- You can complete the application in a few minutes
Benefits:
- Flexible terms up to 72 months
- Great customer support
- Various funding options
Disadvantages:
- You cannot take out a loan in excess of $500,000
- You need a credit score of 650 or more to receive a loan.
- No same-day funding
Crest Capital
Crest Capital provides financing for equipment, vehicles, and software. The company was established in 1989 and currently offers no-hassle equipment financing and leasing to aid growing businesses.
Best For: Software Financing
Location: Alpharetta, GA
Same-Day Funding: No
Collateral Requirements: No
Credit Score Requirements: A minimum FICO score of 650
Repayment Terms: 2-5 years
Loan Range: $5,000 to $500,000
Annual Revenue Requirement: Information not provided
Special Features:
- Low rates and flexible terms
- Private party financing is welcome
- Used equipment is okay
Benefits:
- No hard credit inquiries
- 100% financing
- No rate adjustments
Disadvantages:
- Same-day funding is not available
- You need a credit score of 650 or better to receive a loan
- You cannot take out a loan in excess of $500,000
CIT
CIT provides equipment financing for construction companies, restaurants, computer hardware and software, point-of-sale terminals, and commercial vehicles. Many businesses can get a loan of up to $500,000, with some exceptions. Businesses that provide additional financial details can land a $1 million loan. The company offers deferred payment options for their loans.
Best For: Sole Proprietors and LLCs
Location: New York, NY
Same-Day Funding: Yes
Collateral Requirements: Yes. Assets within the company are used as collateral.
Credit Score Requirements: A minimum FICO score of 620
Repayment Terms: 6-72 months
Loan Range: Up to $500,000
Annual Revenue Requirement: Information not provided
Special Features:
- Net terms
- Several choices for loan payment intervals
Benefits:
- CIT finances new and used equipment
- Same-day funding is available
- No prepayment penalties
Disadvantages:
- Businesses need a credit score of 620 or better to receive funding
- CIT loans have higher interest rates than competitors
- No fuel card program for your fleet to save money
What Is an Equipment Financing Company?
An equipment financing company provides businesses with the necessary funding to buy equipment. Businesses need the proper equipment to grow and operate. Businesses unable to get traditional loans will go to equipment financing companies for the loan.
How Does Equipment Financing Work?
A business in need of equipment will use some of its existing assets as collateral for the loan. This collateral enables the company to access funds quickly.
What to Consider With Equipment Financing
Equipment financing is a significant investment for your business. Whether you need semi-truck financing or a Hilo forklift, equipment financing can help your business grow and run smoothly. Before embarking on equipment financing, consider these factors.
Funding Speed
The best equipment financing companies provide a quick burst of short-term cash flow for their customers. Look for an equipment financing company that will give you access to the loan amount within 24 hours instead of a week.
Collateral
Many equipment financing companies let businesses use their assets as collateral. This common trait amongst the best equipment financing companies helps you gain quick access to cash.
Credit Score
Businesses cannot get traditional loans because of their industry and credit score. The best equipment financing companies will work with you even if you have a low credit score. They will look beyond your score to see if you are a good candidate for their financing.
Financing Amount
Many of the best equipment financing companies allow businesses to borrow millions of dollars against their assets. Businesses need high loan amounts to cover equipment, payroll, commercial truck financing, and other expenses.
Selecting The Best Equipment Financing Company
Each equipment financing company on this list caters to a different group of customers. Assess each financier’s strengths and your needs as a business owner before making a decision.
Not all businesses generate sufficient cash flow for traditional financing. These businesses find themselves locked out of necessary funds for equipment purchases. TAFS business loans cater to these businesses and allow your business to use assets as collateral at competitive rates.
Additionally, TAFS offers invoice factoring and cash advances within a day so you can focus on growing your business. Check out their program today.
FAQ
Equipment financing companies make it easier to get financed for equipment compared to traditional banks.
You can finance heavy equipment with bad credit. The best equipment financing companies are happy to work with you and create a custom plan.
Interest rates vary considerably for each lender. TAFS provides an interest rate as low as 2.49% for 1 truck companies.
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