How does equipment financing work?
Equipment financing works by using the equipment itself as collateral: a lender funds the purchase, you make fixed payments over a set term, commonly 24 to 84 months, and the equipment is yours, working and generating revenue from day one. Amounts run $5K to $5M+, covering everything from a used pizza oven to a fleet of excavators, new or used. Paying cash for equipment drains the working capital that keeps your business breathing; financing lets the machine pay for itself out of the revenue it produces. Quordx Capital matches you with equipment lenders from a 50+ lender network, including industry specialists.
One option in our guide to Alternative Financing.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
The Mechanics of an Equipment Loan
Because the asset secures the loan, equipment financing is structurally friendlier than unsecured borrowing. The lender's risk is capped by the collateral, if the deal goes bad, the equipment can be repossessed and resold, so approval standards flex more on credit, and rates stay reasonable: commonly around 7%-20%, depending on your credit, the equipment type, and the term.
The process: identify the equipment and get a quote or invoice from the seller; apply with your business financials and the equipment details; the lender evaluates both you and the asset (age, condition, and resale value matter, and used equipment qualifies, though terms may be shorter); upon approval, the lender typically pays the vendor directly; you repay in fixed installments over 24-84 months. Down payments vary: stronger credit can mean little or nothing down, while challenged credit may require more skin in the game.
Equipment and Asset Funding Options
Equipment financing: ($5K-$5M+): Best for any revenue-generating machinery, vehicles, or technology, new or used; the asset qualifies alongside you.
SBA 7(a) loans: (up to $5M), Best when equipment is part of a bigger project, buildout plus machinery plus working capital, and you qualify for SBA terms.
Business lines of credit: ($10K-$250K+): Best for smaller tools and recurring equipment needs that don't justify a dedicated loan.
Working capital loans: ($5K-$500K): Best for the soft costs around equipment, like installation, training, and inventory to feed the new capacity.
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How Quordx Capital Works
Submit one application, about five minutes, with your bank statements, tax return, and the equipment quote. Quordx Capital's matching process matches your deal to 3-7 lenders from its 50+ lender network, including specialty equipment funders for industries like transportation, construction, food service, and healthcare, ranked by approval odds. Decisions typically land within 24-48 hours and funding within 3-7 business days.
What to Expect
Worried your credit isn't strong enough? The collateral works in your favor: equipment lenders approve profiles that unsecured lenders decline, though weaker credit means rates toward the higher end of that 7%-20% band and possibly a larger down payment. You'll see exact terms before committing. Matching is free, and there's no obligation to accept any offer.
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No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
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