What are typical equipment financing rates?
Typical equipment financing rates run roughly 7% to 20%, with your landing spot determined by three things: your credit profile, the equipment being financed, and the term length (usually 24-84 months). Strong-credit borrowers buying common, late-model assets price toward the bottom of that range; newer businesses, challenged credit, or older specialized equipment price toward the top. Because the spread between 8% and 18% on a $200K machine is tens of thousands of dollars over the term, the rate you accept matters, and the rate you're offered depends heavily on which lender sees your file.
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Last updated · Reviewed by Cody Dreis
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What actually moves your equipment financing rate
Your credit and business profile: Personal credit score, time in business, and revenue strength set your baseline tier. Two or more years in business with clean bank statements earns meaningfully better pricing than a six-month-old company.
The asset itself: Lenders price collateral risk. A new or late-model machine with strong resale demand (standard trucks, popular construction iron, mainstream medical equipment) supports lower rates; aged, high-hour, or niche assets cost more because they're harder to resell.
Term length and structure: Longer terms (up to 84 months) lower the payment but can carry higher rates; shorter terms often price better. Down payments reduce lender exposure and can buy down your rate tier.
The lender's specialty: This is the underrated factor. A generalist quoting 16% and a specialist who knows your asset class quoting 10% can both be looking at the same file. For context across the market: bank term loans run a median around 7.2%, SBA 504 loans for major fixed assets carry effective fixed rates typically in the 5-7% range, and rates always vary by lender, credit, and deal, no one can honestly promise you a number before underwriting.
Your equipment funding options by rate profile
Equipment financing: 7%-20% typical, $5K-$5M+, the asset as collateral. Best all-around fit for most equipment purchases, new or used.
SBA 504 loans: up to $5.5M, fixed for the loan's life (May 2026 debenture rate: 4.82%; effective rates typically 5-7%). Best pricing available for large, long-life assets if you can wait out the process.
Business term loans: $10K-$500K+ at bank medians near 7.2% for qualified borrowers. Best when the purchase mixes equipment with other project costs.
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How Quordx Capital Works
Instead of collecting quotes one lender at a time, you complete a single 5-minute application with your equipment details, bank statements, and ID. Quordx Capital's matching process runs your profile against 50+ lenders, equipment specialists included, and returns the 3-7 most competitive realistic fits, ranked by approval probability. Most decisions arrive within 24-48 hours, with funding in 3-7 business days.
What to Expect
Real numbers, not teaser rates: every offer shows the rate, term, payment, and total cost before you commit, and Quordx Capital will flag an overpriced offer rather than let it slide through. Comparing your matches is free, lenders pay Quordx Capital, never you, and there's no obligation to accept anything.
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Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures