Finance new or used equipment with same-day approval and funding in 24–48 hours. Terms up to 60 months, rates starting at 5.99% APR, and no blanket liens required on most programs. Equipment serves as its own collateral.
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Equipment financing is a form of secured business lending specifically designed to help companies purchase, upgrade, or replace the physical tools and machinery they need to operate. Whether you run a construction company that needs a fleet of excavators, a restaurant that must replace its commercial kitchen, or a medical practice requiring state-of-the-art imaging equipment, equipment financing provides the capital to acquire these assets without depleting your working capital or draining your cash reserves.
The core mechanic of equipment financing is straightforward: the equipment itself serves as collateral for the loan. This is fundamentally different from unsecured business loans, where lenders must rely entirely on your creditworthiness, revenue, and business history. Because lenders have a tangible asset backing the loan, they can often offer more competitive interest rates, longer repayment terms, and greater flexibility on credit requirements than they would for an unsecured product. This makes equipment financing one of the most accessible and cost-effective forms of small business lending available today.
At Merchant Fund Express, we offer equipment financing from $5,000 to $5,000,000 for both new and used equipment across virtually every industry. Our rates start at 5.99% APR, with repayment terms from 12 to 60 months (up to 5 years), giving you the flexibility to match your monthly payment to your cash flow. Unlike many traditional lenders, we do not require blanket liens on all business assets for most of our equipment programs. The equipment itself secures the loan, leaving the rest of your business assets unencumbered.
Speed is another major advantage. The traditional bank equipment loan process can take weeks or months, requiring extensive documentation, in-person meetings, and committee review cycles. Our streamlined digital process delivers same-day approval decisions and funding within 24 to 48 hours. For businesses that need to seize a competitive opportunity, replace broken-down equipment immediately, or take advantage of a time-sensitive deal from a vendor, that speed is transformative. With credit scores starting at 500+ considered and minimal documentation required for most applications, we have structured our equipment financing program to serve the real needs of American small business owners—not just those with perfect financial profiles.
The IRS Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment in the year it is placed in service—up to $1,160,000 in 2025. When you finance equipment, you can take this full deduction while still preserving your cash flow by spreading payments over 12 to 60 months. That combination of tax savings and preserved liquidity is one of the most powerful financial strategies available to small business owners.
One of the most common questions business owners have is whether to finance equipment (take out a loan) or lease it. Both options allow you to acquire and use the equipment, but they work very differently and are suited to different situations. Understanding the distinction is critical to making the right financial decision for your business.
| Feature | Equipment Loan (Financing) | Equipment Lease |
|---|---|---|
| Ownership | You own the equipment from day one; lien released after payoff | Leasing company owns the equipment; you have right to use it |
| Monthly Payment | Fixed P&I payments; typically higher than lease | Lower monthly payment; no equity built |
| Down Payment | 0% to 20% depending on credit profile | Often 1–2 advance payments at signing |
| Tax Treatment | Section 179 deduction up to $1.16M; bonus depreciation available | Lease payments deductible as operating expense |
| Balance Sheet | Equipment appears as asset; loan as liability | Operating leases often kept off balance sheet |
| Equipment Modifications | Full freedom to modify, customize, or resell | Restrictions on modifications; must return in original condition |
| End of Term | Equipment is yours free and clear — no residual payment | Return, renew, or exercise purchase option (often 10–20% residual) |
| Best For | Long-lived equipment you plan to keep; maximizing tax deductions; building equity | Short-term use; frequently upgraded technology; preserving off-balance-sheet accounting |
Equipment financing (a loan) is generally the better choice when you are acquiring equipment that has a long useful life—construction machinery, medical devices, industrial equipment, commercial refrigeration units, specialty vehicles—and you intend to use it for five or more years. Because you own the equipment, you build equity in it, can use it as collateral for future financing, and face no end-of-lease residual payments. The Section 179 deduction makes financing particularly attractive from a tax perspective, allowing you to write off the full purchase price in year one while paying for the equipment over time.
Leasing is generally superior when the equipment becomes outdated quickly—computers, servers, copiers, certain medical diagnostic devices—and you want the flexibility to upgrade every two to three years without being stuck with obsolete assets. Leasing also typically results in lower monthly payments since you are not building ownership equity. If preserving working capital is your top priority and you have no interest in owning the equipment at the end of the term, leasing can be a smart strategic choice. That said, for most small business equipment needs, the long-term financial advantages of ownership through financing outweigh the short-term payment savings of leasing.
From heavy construction machinery to restaurant ovens to dental chairs — if your business uses it to generate revenue, we can likely finance it. Here are the most common equipment categories we fund.
Excavators, bulldozers, cranes, skid steers, backhoes, forklifts, compactors, trenchers, and concrete equipment. Finance one machine or an entire fleet up to $5M.
Commercial ovens, ranges, refrigerators, walk-in coolers, fryers, dishwashers, POS systems, espresso machines, and food prep equipment for any food service operation.
MRI machines, CT scanners, X-ray equipment, dental chairs, dental imaging, ultrasound machines, lab analyzers, surgical tools, and sterilization systems.
Servers, workstations, networking equipment, cloud infrastructure hardware, telecom systems, point-of-sale systems, security systems, and enterprise software.
Semi-trucks, box trucks, flatbed trailers, refrigerated trailers, cargo vans, work trucks, specialty vehicles, dump trucks, and last-mile delivery fleets.
CNC machines, lathes, milling machines, injection molding presses, laser cutters, welding equipment, conveyor systems, and complete assembly line installations.
Styling chairs, shampoo stations, hair dryers, nail stations, massage tables, laser hair removal systems, skincare equipment, and spa steamers.
Tractors, combines, harvesters, planters, irrigation systems, grain handling equipment, livestock equipment, and specialty crop production machinery.
This list covers the most common categories, but Merchant Fund Express finances equipment across hundreds of industries. Auto repair lifts and diagnostic tools, fitness equipment, printing and signage machinery, dry cleaning equipment, HVAC systems, and virtually any other revenue-generating business asset can likely be financed. Call us at (305) 384-8391 to discuss your specific equipment needs.
Equipment financing works similarly to a car loan, but for business equipment. You identify the equipment you want to purchase—whether from a dealer, manufacturer, private seller, or auction—and apply for a loan to cover all or most of the purchase price. If approved, the lender pays the vendor directly or deposits funds into your account, you receive the equipment and begin using it immediately, and you make fixed monthly payments over your chosen term.
The equipment serves as collateral throughout the loan term. This security interest is recorded in a lien, which is a legal claim the lender holds against the equipment until the loan is repaid in full. Once you make your final payment, the lien is released and you own the equipment free and clear. This structure is why equipment financing can be more accessible than unsecured loans—the lender has a concrete asset they can recover if the loan goes into default, which reduces their risk and allows them to approve more applicants at competitive rates.
Merchant Fund Express acts as both a direct lender and a marketplace for equipment financing, meaning we can access multiple funding programs and match you with the best terms for your situation. Our underwriting considers three primary factors: the value and liquidity of the equipment (is it easy to resell if needed?), the health of your business (revenue, time in business, cash flow), and your creditworthiness. Strong performance in any of these areas can offset weakness in another, which is why we fund business owners that traditional banks routinely decline.
The financed equipment secures the loan. Unlike working capital loans that may require blanket liens on all business assets, most equipment financing programs only require a security interest in the specific equipment being purchased. Your other assets remain unencumbered and available to secure other financing if needed.
Major equipment purchases can wipe out months of cash reserves. Equipment financing lets you spread the cost over 12 to 60 months with predictable monthly payments, keeping your working capital intact for payroll, inventory, marketing, and operational expenses. You get the productive capacity of the equipment immediately while paying for it gradually from the revenue it helps generate.
One of the most powerful advantages of equipment financing is the ability to combine financing with the Section 179 tax deduction. In 2025, businesses can deduct up to $1,160,000 of qualifying equipment in the year it is placed in service. You pay for the equipment over time through financing, but take the full tax deduction immediately—a powerful cash flow and tax optimization strategy.
Equipment financing through Merchant Fund Express is designed to be accessible to businesses at various stages of growth and with varied credit profiles. Here is what you need to qualify and what factors affect your terms:
| Requirement | Standard Minimum | Notes |
|---|---|---|
| Time in Business | 3+ months | Startups considered case by case; stronger credit helps |
| Credit Score | 500+ (personal) | Higher scores unlock better rates and 0% down programs |
| Monthly Revenue | $8,000+ per month | Lower revenue may qualify with strong credit or larger down payment |
| Equipment Age | New or used up to 10 years old | Exceptions available for specialized or low-hours equipment |
| Down Payment | 0% to 20% | Determined by credit score and equipment type (see rate table) |
| Equipment Value | $5,000 minimum | No maximum — programs up to $5,000,000 |
| Business Type | All industries considered | Sole proprietors, LLCs, S-Corps, C-Corps, and partnerships |
While we consider applications from businesses that meet the minimums above, certain factors significantly strengthen your application and help you qualify for better rates, higher amounts, and longer terms. Understanding what lenders look for can help you position your application for maximum success.
Steady, growing revenue is the single most important factor. Lenders want to see that your business generates enough monthly cash flow to comfortably service the new debt. Bank statements showing consistent deposits of $10,000 or more per month, with a trend toward growth over the past three to six months, signal that the business is financially healthy and that the equipment will be put to productive use.
Clear equipment purpose also matters. Lenders are more comfortable financing equipment that is directly tied to revenue generation—a new delivery truck for a logistics company, a commercial oven for a restaurant, or a CNC machine for a manufacturing shop. When the equipment clearly enables or enhances the business's core revenue-generating activities, the underwriting logic is straightforward.
Equipment financing rates and terms vary based on your credit profile, the type and age of equipment, your business's revenue and time in operation, and the loan amount. The table below shows typical rate ranges for each credit tier. Use these as guidelines — your actual rate will be determined during the application process based on the full picture of your business.
| Credit Score Range | Typical APR | Typical Term | Down Payment |
|---|---|---|---|
| 700 and above | 5.99% – 7% | Up to 60 months | 0% (often) |
| 650 – 699 | 6% – 9% | 48 – 60 months | 0% – 10% |
| 600 – 649 | 8% – 12% | 36 – 60 months | 5% – 15% |
| 500 – 599 | 12% – 18% | 24 – 48 months | 10% – 20% |
Unlike merchant cash advances and some working capital products that quote a "factor rate" (a multiplier applied to the advance amount), equipment financing is expressed as an Annual Percentage Rate (APR). APR is a standardized measure that accounts for the interest rate plus any fees, spread over the loan term, making it easier to compare apples to apples across lenders. Always ask any lender for the APR when comparing equipment financing options — a low factor rate can actually translate to a very high effective APR depending on the repayment speed.
Consider a restaurant owner financing $75,000 in commercial kitchen equipment at 7.5% APR over 48 months with 5% down ($3,750 down, $71,250 financed). Monthly payments would be approximately $1,723, for a total repayment of approximately $82,704. The total interest cost is $11,454 — less than one month's revenue for many restaurants. Against the Section 179 deduction of up to $75,000 and the productive life of the equipment over the next 10 or more years, the financing cost is a minor expense compared to the economic value generated.
The Section 179 deduction for 2025 allows businesses to deduct up to $1,160,000 of qualifying equipment placed in service during the tax year. Additionally, 60% bonus depreciation is available for new equipment in 2025. When you finance a $100,000 piece of equipment and take the full Section 179 deduction, a business in the 25% tax bracket saves $25,000 in taxes in year one alone — while only having put down $0 to $20,000 out of pocket. This combination of preserved cash flow, productive capacity, and immediate tax benefit makes equipment financing one of the highest-ROI financial strategies for growing businesses.
Tax deductibility depends on your business structure, taxable income, and other factors. Always consult a qualified CPA or tax advisor to determine how Section 179 and bonus depreciation apply to your specific situation before making financial decisions based on projected tax savings.
One of the most important decisions equipment buyers face is whether to purchase new or used. Both options have significant financial and operational implications, and both can be financed through Merchant Fund Express. Understanding the differences will help you make the decision that best serves your business's growth, cash flow, and long-term operational needs.
New equipment financing is typically the most straightforward type of loan to secure. Lenders know the exact market value of new equipment, it comes with manufacturer warranties, and there are no unknowns about prior usage, maintenance history, or hidden wear. Because the collateral risk is lowest with new equipment, lenders can offer the most competitive rates (starting at 5.99% APR), the longest terms (up to 60 months), and the lowest or zero down payment requirements for qualified borrowers.
New equipment also provides the maximum Section 179 deduction and bonus depreciation benefit. If you plan to take advantage of these tax incentives and the equipment type qualifies, purchasing new often maximizes your total financial return when you factor in both the financing cost and the tax savings.
Used equipment financing is an excellent strategy for businesses that need productive capacity at a lower acquisition cost. A two-year-old commercial excavator that cost $300,000 new may be available for $180,000 used — financing that used machine allows you to achieve the same operational capability while financing 40% less capital. Merchant Fund Express finances used equipment up to 10 years old, with some exceptions made for equipment types that have particularly long operational lives or that hold value exceptionally well.
For used equipment, the loan amount is based on the current market value rather than the original purchase price or the asking price from a private seller. For purchases above $100,000 or for equipment with an uncertain market value, an equipment appraisal or inspection may be required. Appraisal costs are typically modest ($200–$500) relative to the loan amount and can often be rolled into the financing.
To maximize your chances of approval and minimize your rate on used equipment, obtain an independent appraisal before applying, gather any available maintenance records and service history, purchase from a reputable dealer or auction house when possible, and be prepared to provide 10–15% down if your credit score is below 650. A larger down payment reduces the lender's risk and often unlocks significantly better rates, more than offsetting the reduced cash preservation benefit.
From application to funded in as little as 24–48 hours — here is exactly how the Merchant Fund Express equipment financing process works.
Complete our streamlined digital application with basic business information and equipment details. No lengthy paperwork — we ask only what we need to get you an accurate decision. Upload your bank statements and equipment invoice directly through our secure portal.
Our underwriting team evaluates your equipment value, business revenue, and credit profile simultaneously to deliver a same-day decision. We evaluate the full picture of your business — not just your credit score. Most applicants receive a decision within hours of submitting a complete application.
Upon approval, funds are disbursed within 24 to 48 hours. We can pay your equipment vendor directly or deposit funds into your business bank account. Once you have the funds, complete your purchase and put your new equipment to work generating revenue immediately.
To speed up your application, gather these before you start: 3–6 months of business bank statements, a government-issued photo ID, your equipment invoice or quote from the vendor, and proof of business ownership (articles of incorporation, business license, or EIN confirmation letter). For amounts above $250,000, have 1–2 years of business tax returns available. Most applications with complete documentation are approved within the same business day.
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Merchant Fund Express funds equipment across every major industry. No matter what your business does, we have a program designed to help you acquire the tools you need to grow.
Heavy equipment, cranes, excavators
Commercial kitchens, ovens, fryers
Imaging, dental chairs, lab equipment
Trucks, trailers, commercial fleets
CNC, presses, assembly systems
Servers, workstations, IT infrastructure
Tractors, harvesters, irrigation
Styling stations, lasers, spa gear
Lifts, diagnostic tools, shop equipment
POS systems, shelving, display cases
Cardio, strength, studio equipment
Wide-format printers, cutters, CNC routers
Everything you need to know about equipment financing — answered by the Merchant Fund Express team.
Equipment financing is a type of business loan used specifically to purchase or upgrade business equipment. The equipment itself serves as collateral for the loan, which means lenders can often offer more competitive rates and more flexible terms than unsecured business loans.
You receive the equipment immediately, make fixed monthly payments over the loan term, and own the equipment outright at the end of the term. Merchant Fund Express offers equipment financing from $5,000 to $5,000,000 with rates starting at 5.99% APR and terms from 12 to 60 months.
Nearly any type of revenue-generating business equipment can be financed. Common categories include construction and heavy equipment (excavators, cranes, bulldozers, forklifts), restaurant and food service equipment (commercial ovens, refrigerators, fryers, POS systems), medical and dental equipment (imaging machines, dental chairs, lab equipment), technology and IT infrastructure (servers, computers, telecom systems), transportation and commercial vehicles (trucks, trailers, vans), manufacturing equipment (CNC machines, presses, assembly lines), salon and spa equipment, and agricultural equipment.
If your business uses it to generate revenue, it can almost certainly be financed. Call us at (305) 384-8391 to discuss any equipment type not listed above.
Through Merchant Fund Express, businesses can finance equipment from $5,000 to $5,000,000. The exact amount you qualify for depends on the cost and type of equipment, your business revenue, time in business, credit score, and overall financial health.
Most small businesses qualify to finance equipment worth $10,000 to $500,000. Larger amounts are available for established businesses with strong monthly revenue and solid credit profiles. There is no maximum limit on our programs — we regularly fund large equipment acquisitions for established businesses with strong financials.
Merchant Fund Express considers equipment financing applications from business owners with credit scores as low as 500. Because the equipment serves as collateral, lenders can be more flexible on credit requirements than with unsecured loans.
Borrowers with scores of 500–599 typically qualify for rates of 12–18% APR with terms of 24–48 months and may need 10–20% down. Those with scores of 650+ often qualify for rates as low as 5.99%–9% APR with terms up to 60 months and minimal or no down payment required. Strong business revenue can partially offset a lower personal credit score.
Merchant Fund Express offers same-day approval decisions for equipment financing. Once approved, funds are typically disbursed within 24 to 48 hours. The funds can be sent directly to the equipment vendor or deposited into your business bank account.
Our streamlined digital application takes about 2 minutes to complete. With complete documentation (bank statements, equipment invoice, ID, and business ownership proof), our underwriting team can evaluate and approve your application the same business day. This speed is a major advantage over traditional bank equipment loans, which can take 4–8 weeks.
Equipment financing (an equipment loan) means you borrow money to purchase the equipment and own it outright once the loan is repaid. You build equity, can take Section 179 and bonus depreciation deductions, can modify or resell the equipment freely, and have no restrictions on use. At the end of the loan term, the equipment is yours with no additional payments.
Equipment leasing means you pay to use equipment owned by the leasing company. Monthly payments are typically lower and you can upgrade to newer equipment at the end of the lease, but you build no equity and may face usage restrictions and return requirements. Operating leases can also have accounting advantages for businesses that prefer to keep obligations off the balance sheet.
Equipment financing is generally better for equipment with long useful lives that you intend to keep — construction machinery, medical devices, industrial equipment. Leasing makes sense for technology that becomes obsolete quickly or when preserving low monthly payments is the top priority.
Yes. Merchant Fund Express finances both new and used equipment. For used equipment, lenders typically require that the equipment is no more than 10 years old, though exceptions are made for equipment types that have particularly long operational lives or exceptional market liquidity.
The loan amount for used equipment is based on current market value rather than the original purchase price or seller's asking price. For higher loan amounts or equipment with uncertain market value, an appraisal may be required. Buying quality used equipment and financing it is an excellent strategy to access productive capacity at significantly lower cost than purchasing new.
For most equipment financing applications through Merchant Fund Express, you will need: a completed application with basic business and owner information; 3 to 6 months of business bank statements; a government-issued photo ID; an equipment invoice or quote from the vendor (or a description and estimated value for used equipment); and proof of business ownership such as articles of incorporation, an operating agreement, or a business license.
For larger amounts ($250,000 and above) or for businesses with lower credit scores, we may also request the most recent 1–2 years of business tax returns. Having all these documents ready before you apply significantly speeds up the approval process and increases the likelihood of same-day approval.
Yes. With equipment financing (as opposed to leasing), you own the equipment from the moment of purchase. The lender holds a security interest — a lien — in the equipment as collateral for the loan, similar to how a bank holds a lien on a financed car. But you have full possession, use, and operational control of the equipment from day one.
You can operate the equipment however your business requires. Once you make your final loan payment, the lender files a UCC-3 termination statement to release the lien, and you own the equipment completely free and clear with no further obligations to the lender.
Yes. Equipment financing is one of the most accessible financing options for business owners with bad credit precisely because the equipment serves as collateral. Merchant Fund Express considers applications from businesses with credit scores as low as 500.
Applicants with lower credit scores (500–599) may be asked for a larger down payment of 10–20% and will typically receive higher rates in the 12–18% APR range, but qualification is possible. Strong monthly revenue of $10,000 or more per month and a solid track record of business operations can significantly offset a lower personal credit score. If you have been declined by banks or other lenders due to credit, call us to discuss your options.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying business equipment placed in service during the tax year, rather than depreciating it over multiple years under standard MACRS schedules. For 2025, the Section 179 deduction limit is $1,160,000, with a phase-out beginning at $2,890,000 in total equipment purchases.
When you finance equipment, you get the best of both worlds: you preserve your cash flow by spreading payments over 12 to 60 months, and you still take the full Section 179 deduction in year one as if you had paid cash. For a business in the 25% tax bracket purchasing $100,000 in equipment, that represents a $25,000 tax savings in year one alone. Additionally, 60% bonus depreciation is available for new equipment in 2025, providing even greater first-year deductions.
Always consult your tax advisor to confirm how these deductions apply to your specific business structure, taxable income, and equipment type before making decisions based on projected tax savings.
Down payment requirements for equipment financing vary based on your credit profile and the specific equipment being financed. Borrowers with credit scores of 700 or higher often qualify for 0% down payment programs. Those with scores of 650–699 may need 0–10% down. Scores of 600–649 typically require 5–15% down, and scores of 500–599 generally require 10–20% down.
A larger voluntary down payment — even when not required — can help you qualify for better rates and longer terms, reduce your monthly payment, and lower your total interest cost. If your credit score is borderline for a particular program, putting more down can sometimes make the difference between approval and denial, or between a 12% and a 8% rate.
When you finance equipment, you own it, which means maintenance and repair responsibilities fall entirely on you. This is a key difference from leasing, where the lessor may handle certain maintenance issues. We strongly recommend purchasing manufacturer extended warranty coverage and equipment service agreements, especially for high-value machinery such as commercial kitchen equipment, medical devices, or construction equipment.
If equipment becomes obsolete before the loan is paid off, you remain obligated to complete your loan payments regardless of the equipment's current market value or usefulness. This is an important consideration for rapidly evolving technology — if you are financing servers or computer equipment with a 60-month term, consider whether that equipment will still serve your needs in 5 years. For technology equipment, shorter terms (24–36 months) or leasing often make more strategic sense.
For equipment with long useful lives — construction machinery, medical imaging equipment, commercial kitchen equipment, manufacturing machinery — financing with a 60-month term is usually the optimal strategy, as the productive life of the equipment far exceeds the loan term.
Yes, though options may be more limited for very new businesses. Merchant Fund Express typically requires a minimum of 3 months in business for equipment financing. Startups with less than 6 months of operating history may be considered on a case-by-case basis, particularly if the owner has strong personal credit (680 or above) and documented industry experience that reduces underwriting risk.
New businesses should be prepared to provide a larger down payment of 15–20% and may receive shorter initial terms to manage lender risk. A detailed business plan showing projected revenue from the financed equipment can also strengthen a startup's application. As your business establishes its revenue history over 6–12 months, refinancing to better terms and larger amounts becomes an option.
Equipment financing through Merchant Fund Express is structured as fixed monthly payments over your chosen term of 12, 24, 36, 48, or 60 months. Each payment is the same amount every month, covering both principal reduction and interest — just like a standard car loan or home mortgage. This predictable payment structure makes budgeting straightforward and eliminates the uncertainty of variable payment products.
Payments are typically debited via ACH from your business bank account on a fixed date each month. There are no prepayment penalties with most of our equipment financing programs, meaning you can pay off the loan early and save on total interest costs if your business generates strong cash flow. Some programs also offer seasonal payment structures for businesses with highly seasonal revenue patterns — contact us to discuss flexible payment options.