Equipment financing · Rates
Equipment Financing Rates in 2026: What Businesses Actually Pay
Equipment loan rates in 2026 run from about 6% APR for strong credit on a new truck to 25% or more on a start-up buying used machinery. Here is the range by credit tier, by equipment type and by lender, what moves your quote inside the range, and how to compare offers that quote factors instead of APRs.
What Are Equipment Financing Rates Right Now?
With Prime at 7.00% in October 2026, equipment financing APRs across our lender network run roughly 6% to 10% for 720+ credit on hard assets, 8% to 14% for 680–719, 12% to 20% for 640–679, 18% to 28% for 600–639, and 25%+ or asset-based pricing below 600 and for start-ups. Titled vehicles and heavy equipment price at the low end of each band; restaurant, salon and soft assets at the high end. Bank and SBA programs can run lower for established borrowers; speed-focused online lenders run higher. Rates are usually fixed for the term.
Rates by Credit Tier
| Credit tier | Typical APR | Typical down payment | Typical term |
|---|---|---|---|
| Excellent (720+) | 6–10% | 0–10% | 36–84 months |
| Good (680–719) | 8–14% | 0–15% | 36–72 months |
| Fair (640–679) | 12–20% | 10–20% | 36–60 months |
| Challenged (600–639) | 18–28% | 15–25% | 24–60 months |
| Under 600 / start-up | 25%+ or asset-based | 20–30% | 24–48 months |
Typical APR midpoint by credit tier, 2026
Midpoints of published lender ranges. Hard, titled assets price below the midpoint; soft assets above.
Rates by Equipment Type
| Equipment | Typical APR range | Why |
|---|---|---|
| Trucks, trailers, titled vehicles | 7–16% | Strong resale market; titled lien |
| Construction and heavy equipment | 7–16% | Auction-verifiable value |
| Medical, dental, veterinary | 6–12% | Professional borrowers, essential use, strong resale |
| Manufacturing and CNC | 8–16% | High value, specialized resale |
| Restaurant equipment | 10–20% | Lower resale value, higher industry risk |
| Salon, retail fixtures, soft assets | 12–24% | Little collateral value |
| Technology and software | 9–18% | Fast depreciation; often leased |
Rates by Lender Type
| Lender type | Typical APR | Speed | Best for |
|---|---|---|---|
| Bank equipment finance | 6–10% | 1–3 weeks | 700+ credit, 2+ years, larger tickets |
| SBA 7(a) or 504 | Prime + 3–6.5% (10–13.5% cap); 504 fixed ~6.6–7% | 30–90 days | Seven-figure equipment or equipment plus real estate |
| Independent equipment lenders | 8–20% | 1–3 days | Most small-business deals; A–C credit; app-only |
| Captive / dealer financing | 0–12% promotional | Days | New equipment from a major brand |
| Online speed lenders | 15–30%+ | Same day | Weak credit or urgent need |
A broker’s job is to route the file to the cheapest lender that will approve it. See SBA loans for the seven-figure route.
What Moves Your Rate Inside the Range
- Down payment. 10% down typically cuts the rate by one to three points and can move you up a tier.
- Term. Shorter terms price lower; 84-month deals on used equipment price highest.
- Equipment age and type. New, titled, mainstream-brand equipment gets the best pricing.
- Time in business and deposits. Two years and clean statements matter as much as the score.
- Existing short-term debt. Several merchant cash advances on the statements push you down a tier.
- Deal size. Larger tickets price lower per dollar; under $25,000 carries a premium.
Factor Rates, Payment Factors and APR
Equipment lenders often quote a payment factor: the monthly payment per dollar financed. A factor of 0.0224 on $100,000 over 60 months is $2,240 a month, which is about 12% APR. Some working-capital products use a factor rate (1.25 = repay $1.25 per $1), which is not an interest rate at all. Always ask for the APR and the total of payments. See factor rate vs APR.
| $100,000 over 60 months | Payment factor | Monthly payment | Total paid |
|---|---|---|---|
| 8% APR | 0.0203 | $2,028 | $121,660 |
| 12% APR | 0.0222 | $2,224 | $133,470 |
| 18% APR | 0.0254 | $2,539 | $152,370 |
| 24% APR | 0.0288 | $2,877 | $172,630 |
Fees to Ask About
- Documentation fee: $150–$500, standard.
- Origination fee: 0–3% on some programs; banks rarely charge one, speed lenders usually do.
- UCC and title fees: under $200.
- Prepayment: many loans have none; some leases charge remaining interest. Ask.
- Insurance: the lender is named loss payee; you carry physical-damage cover.
The Rate After Tax
Because financed equipment qualifies for Section 179 (up to $2,560,000 in 2026) and 100% bonus depreciation, the first-year tax saving on a $100,000 purchase is often $21,000 to $37,000 depending on your bracket — more than the first year of interest at any rate in the tables above. Interest itself is deductible as a business expense. See Section 179 and equipment financing.
Common Questions
What is a good interest rate for equipment financing?
For an established business with 700+ credit buying a new or late-model hard asset, 6% to 10% APR is a good rate in 2026. For fair credit, 12% to 16% is typical and competitive. Compare against the total cost and the tax saving rather than the rate alone.
Are equipment financing rates fixed?
Almost always. Equipment loans and leases carry a fixed payment for the term, which is one reason owners prefer them over Prime-based lines of credit for long-life purchases.
Why is my quote a factor instead of a rate?
Many equipment lenders quote a monthly payment factor per dollar financed. Multiply by the amount financed for the payment, then ask for the APR and the total of payments so you can compare offers.
Is it cheaper to lease or finance equipment?
A fair-market-value lease has the lowest monthly payment but you do not own the equipment at the end. A loan or $1-buyout lease costs more per month but builds ownership and qualifies for Section 179. Over the life of equipment you keep, financing is usually cheaper.
Will rates go down in 2027?
Equipment rates track Prime and lender funding costs. Prime moved up to 7.00% in September 2026; most forecasts in October 2026 have it flat to slightly higher into early 2027. If you need the equipment this year, the Section 179 deadline matters more than a quarter-point of rate.
Sources
- Equipment loan rates in 2026 by credit and equipment type — Equipment Financing HQ
- Equipment financing rates and benchmarks 2026 — Crestmont Capital
- Bank prime loan rate — Federal Reserve Board, H.15
- Section 179 deduction guide 2026 — Block Advisors
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist tells you up front whether SBA is realistic for your file — and which faster products fit if it is not.
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