How we scored equipment lenders
We reviewed equipment lenders and leasing companies that small businesses search for and that other ranking sites list, plus the general funders on our site with an equipment product. Each was scored on the same seven published criteria as every funder, and this page lists them by that score.
For equipment, payoff treatment and post-signing conduct carry special weight. Leases can include insurance charges if you do not show proof of coverage, end-of-term purchase rules, and payoff figures that still include most of the remaining payments. Those are the complaints we counted in reviews, and they move scores more than a fast approval does.
Cost is judged against the market. Equipment financing runs roughly 4% to 45% APR, and origination fees typically run 0.5% to 4% of the amount [9]. Only one company here, Kapitus, publishes a starting rate [7].
Minimums, limits and speed side by side
| Company | Min credit | Time in business | Revenue | Rate shown | Speed or limit |
|---|---|---|---|---|---|
| Credibly | 500 [1] | 6 months [1] | $25,000 a month in deposits [1] | Not published | Not published |
| National Funding | Most customers 600+ [2] | 6 months [2] | Not published | Not published | Next business day; up to $150,000 [2] |
| Lendio | Set by lender | Set by lender | Set by lender | As low as 7.5% listed [4] | As soon as 24 hours [4] |
| Taycor Financial | Not published | 2 years for most programs [5] | Not published | Not published | 2-hour approval to $150,000 [5] |
| Kapitus | 660 [7] | 2 years [7] | Not published | From 7.5% [7] | Application-only to $500,000 [7] |
| Balboa Capital | 640 [8] | 2+ years [8] | $100,000 a year [8] | Not published | One-hour decisions [8] |
Newer businesses have a few doors. Credibly and National Funding say six months can qualify [1][2], Balboa has programs up to $50,000 for businesses six months to two years old [8], and Taycor says it has a new business program for companies under two years [5]. See our bad credit equipment financing guide if your score is the sticking point.
What $50,000 of equipment costs over five years
Because so few companies publish a rate, the spread you could be quoted is wide. This example uses the ends of the market range [9] and Kapitus's published starting rate [7], on a $50,000 machine repaid monthly over 60 months.
| APR | Where it comes from | Monthly payment | Total interest |
|---|---|---|---|
| 4% | Low end of the market [9] | $921 | $5,250 |
| 7.5% | Kapitus starting rate [7] | $1,002 | $10,114 |
| 45% | High end of the market [9] | $2,106 | $76,380 |
The same machine can cost about $5,000 or more than $75,000 to finance, depending on the rate. Origination fees of 0.5% to 4% would add $250 to $2,000 on top [9]. That is why we push every lender for an APR and a total, and why a fast approval is worth little if the price is at the top of the range. Run your own quote through our loan payment calculator.
Lease or loan: what you own at the end
With an equipment loan, you own the equipment and the lender holds a lien until you pay. With a lease, the leasing company owns it and your end-of-term choice decides what you pay to keep it. Taycor describes three common end-of-term options [5]:
| Option | What happens at the end | Fits |
|---|---|---|
| Fair market value | Return it, extend, or buy it at its market value then | Tech and gear that ages fast |
| $1 buyout | Buy it for $1 ($101 in some states) [11] | Gear you plan to keep for years |
| Fixed purchase option | Buy at a set percent of the original cost, or return it | A capped price with a way out |
A fair market value lease usually has a lower payment because you are not paying off the full price. A $1 buyout lease works much like a loan. Compare total payments plus the buyout, not just the monthly figure.
The fine print that sinks equipment deals
- Money due at signing. Taycor typically requires the first and last payment in advance [5]. Ask what any lender collects before the equipment ships.
- Total amount financed and cost of financing. The Fifth Circuit noted that Balboa's older agreements included neither [14]. Do not sign one that leaves them out.
- Early payoff. Taycor says there are no prepayment penalties and a benefit to paying early [6]; get the payoff formula in writing either way.
- Insurance. Ask whether you must insure the equipment yourself and what the company charges if it does not receive proof of coverage.
- Who else sees your application. Taycor's terms say network partners it shares your file with may keep and use your information [10].
Equipment financing in New Jersey
Most equipment lenders here finance nationwide, but check product limits by state. National Funding, for example, says that in New Jersey the financing it offers is limited to sales-based financing [3], so ask whether its equipment program is open to you before you apply. Our New Jersey equipment financing page covers local and state options, and our Section 179 guide explains the year-end tax angle.
Where our funding service sits
Batch Capital, our funding service, is not part of this ranking. It compares offers from funding partners and is paid when a deal it arranges closes, so we list it only here, apart from the scored companies.