Home → Learn → Equipment Loan Rates
Equipment Loan Rates in 2026
Typical market ranges · Last updated July 2026
There's no single "equipment loan rate" — the number depends on who you are and what you're buying. This page lays out the ranges two ways: by your credit profile, and by equipment type (because the machine is the collateral, and better collateral earns a better rate). Use them to know whether a quote you're handed is competitive, then compare at least two offers.
Equipment loan rates by credit score
| Credit tier | Typical APR | Typical down | Notes |
|---|---|---|---|
| Excellent (720+) | 6% – 10% | 0% – 10% | Best terms; banks and SBA can run even lower for established borrowers |
| Good (680–719) | 8% – 14% | 0% – 15% | The standard 'approved and priced well' band |
| Fair (640–679) | 12% – 20% | 10% – 20% | Approved, but collateral strength and down payment matter more |
| Challenged (600–639) | 18% – 28% | 15% – 25% | Still workable — lenders lean on the equipment as collateral |
| Poor (below 600) | 25% – 35%+ | 20% – 30% | Deals get done on strong collateral, down payment, and industry experience |
Terms typically run 24–84 months, matched to the equipment's useful life — longer for machines that last (laundromat equipment, dental chairs), shorter for machines that wear (high-hour trucks, cardio equipment).
Equipment loan rates by equipment type
Two borrowers with identical credit can get different rates on different machines, because the lender's risk is tied to what they could recover by reselling the equipment. Hard, liquid, titled assets price lowest; soft or specialized assets price higher.
| Equipment type | Typical APR | Why |
|---|---|---|
| Titled vehicles (trucks, trailers, vans) | 7% – 16% | Strong, liquid collateral with a title — among the best rates |
| Heavy & construction equipment | 7% – 16% | Deep resale markets (excavators, skid steers, forklifts) |
| Medical, dental & veterinary | 6% – 12% | Very low default rates; specialized practice lenders |
| Manufacturing & CNC | 8% – 16% | Documentable revenue per machine and solid resale |
| Restaurant & food service | 10% – 20% | Higher risk, and some equipment is softer collateral |
| Salon, retail & soft assets | 12% – 24% | Modest resale value pushes rates up; credit matters more |
What determines your equipment loan rate
- Credit score — the single biggest factor for most borrowers.
- Time in business — established businesses price better than startups.
- The equipment itself — resale value and age set how much the collateral helps.
- Down payment — more down lowers the lender's risk and your rate.
- Deal size and term — very small tickets and very long terms can carry higher rates.
- The rate environment — equipment rates move with the Fed's benchmark over time.
Estimate your payment at these rates
Estimate your equipment payment
Estimate only. Your rate depends on credit, time in business, and the equipment's age. Typical equipment loan APRs run roughly 7–15% for established businesses with good credit, and 15–30% for startups or challenged credit.
How to get a lower rate
- Get at least two quotes — a dealer or manufacturer offer against an independent lender. This alone routinely saves 1–3 points of APR.
- Put more down; even 10% changes the conversation for a marginal file.
- Buy dealer-sold or certified-used equipment, which finances better than private-party.
- Bring proof of industry experience and any booked work or contracts.
- Check your personal credit and fix obvious errors before you apply.
See what you actually qualify for
These are typical ranges, not offers. The only way to know your rate is to get quotes — and the highest-leverage move in the whole process is comparing two of them.
Get matched with equipment lenders →Frequently asked questions
What is the average equipment loan interest rate in 2026?
Equipment loan APRs typically run about 6–16% for established businesses with good credit and 18–35% for startups or challenged credit. The exact rate depends on your credit, time in business, the down payment, and the equipment's resale value — hard, titled collateral like trucks earns lower rates than soft assets like salon furniture.
What credit score do I need for the best equipment loan rate?
A score of 720+ generally unlocks the best rates (roughly 6–10%), and 680+ still prices well. Between 600 and 680 you'll be approved but pay more and likely put 10–20% down. Below 600, deals still get done on the strength of the collateral, down payment, and industry experience.
Why do equipment loan rates vary so much by equipment type?
Because the equipment is the collateral. Hard, liquid, resellable assets — titled trucks, heavy equipment, medical devices — lower the lender's risk and earn lower rates. Soft or specialized equipment with a thin resale market prices higher because the lender would recover less in a default.
Are equipment loans cheaper than other business financing?
Usually, yes. Because the machine secures the loan, equipment financing is typically far cheaper than unsecured working-capital loans and dramatically cheaper than merchant cash advances, which can carry effective APRs of 60–150%. Never pay unsecured-money rates for a secured-asset purchase.
How can I lower my equipment loan rate?
Put more down, buy dealer-sold or certified equipment, bring proof of industry experience and booked work, fix obvious credit errors first, and — most powerfully — get at least two quotes and make them compete. The spread between a dealer's first offer and an independent lender is routinely 1–3 points of APR.
How we set these ranges: figures reflect typical U.S. market conditions as of July 2026, synthesized from published lender rate disclosures and refreshed quarterly. They are typical ranges, not offers or quotes. Your actual rate depends on your credit, business, and the equipment, and market rates move over time. For the mechanics behind these numbers, see how equipment financing works, how to compare offers, and why an MCA costs far more.