Equipment financing: plain-English answers
The equipment itself is collateral — that's what makes equipment financing easier to qualify for than a standard business loan. Here's how loans and leases compare, and what startups and bad-credit borrowers can realistically get.
What is equipment financing?
A loan or lease where the equipment itself is the collateral — which is why approval is easier and terms are longer.
Equipment loan vs equipment lease: which is better?
Buy if you'll use it 5+ years and want to own. Lease if the tech ages fast or cash flow is tight.
Can a startup get equipment financing?
Yes — the equipment itself is collateral, so time-in-business rules are looser. Expect a higher down payment.
Can I get equipment financing with bad credit?
Often yes. Sub-600 FICO can still fund with 15–25% down and slightly higher rates.