EquipmentLoans
Commercial equipment is often one of the most expensive purchases a business owner makes — outside of real estate. With significantly greater capacity than personal-grade alternatives, the cost difference is substantial.
Equipment loans make it possible to acquire what your business needs to operate and grow — without draining your working capital or delaying your launch.
Equipment Loans Explained
Equipment loans are purchasing loans that cover all or a portion of the cost of acquiring commercial equipment. The types of equipment covered include manufacturing machinery, power tools, commercial kitchen appliances, servers, computer software, vehicles, and product dispensing machines.
Due to the higher cost of commercial-grade equipment — including differences in licensing — it can be difficult for small business owners to afford what they need to get up and running. An equipment loan solves that problem directly.
Equipment loans are a quick path to the tools that make your business profitable. Terms can range from a few months to many years, and the equipment itself typically serves as collateral — making qualification more accessible than with many unsecured loan products.
What Can Be Financed?
If it's used for a legitimate business purpose, it likely qualifies. Here are some of the most common equipment categories we finance.
Advantages of Equipment Loans
Ownership, credit-building, and long-term cost savings — equipment loans deliver more value than leasing for most business situations.
Builds Your Credit Score
Unlike equipment leasing, making timely payments on an equipment loan is reported to commercial credit bureaus — actively improving your business credit profile and unlocking better financing terms down the road.
Flexible Repayment Terms
Equipment loan terms range from a few months to many years — structured around the expected useful life of the equipment and your business cash flow. Short-term or long-term, we find the structure that fits.
More Cost-Effective than Leasing
Over the long run, purchasing equipment through a loan is almost always cheaper than leasing. Once the loan is paid off, you own the asset outright — no ongoing payments, no lease renewal negotiations.
Cover the Full Cost
Equipment loans can cover all or a portion of the purchase price. Covering 100% of the cost keeps your working capital untouched — preserving cash for payroll, operations, and growth.
Equipment as Collateral
The equipment itself often serves as collateral for the loan — meaning you don't need to pledge other business assets. This makes qualification more accessible, especially for businesses with limited credit history.
Dedicated Broker Support
Our advisors shop your file across multiple lenders to find the equipment loan that matches your industry, credit profile, and budget — so you get the right terms without the legwork.
Smart Ways to Use Your Equipment Loan
Getting the right equipment is only part of the equation — structuring the loan correctly makes the difference between a smart investment and an ongoing burden.
Quick Startup
Equipment loans help businesses achieve the capacity needed to function and become profitable fast. Without financing, many small businesses would be unable to afford the equipment required to open — putting the entire venture at risk before it begins.
Buy vs. Lease: Know the Difference
If the equipment is expected to be used long-term, purchasing is more cost-effective than leasing. However, leasing removes the responsibility of repairs and upgrades from the business owner. An equipment loan gives you the benefits of ownership while spreading out the cost over time.
Resale & Leaseback
Business owners who originally purchased equipment with a loan and later need liquidity can sell the equipment and lease it back from the buyer — without physically moving it. This unlocks capital from existing assets while maintaining operational continuity.
Frequently Asked Questions
How Much Are Interest Rates on Equipment Loans?
Typical interest rates for equipment loans range from 4% to around 13%. The exact rate depends on several factors — including your credit score, how much of the equipment cost you're financing, the age and type of equipment, and the lender. A business owner with strong credit financing a portion of the cost will see rates toward the lower end, while a business with poor credit financing 100% of a used machine will sit toward the higher end. Your HTP advisor will shop multiple lenders to find the most competitive rate for your situation.
How Do You Qualify for an Equipment Loan?
Qualification requirements vary by lender, but typically include a minimum time in business (often 6–12 months), a minimum credit score (often 600+, though lower scores can qualify with the right lender), proof of revenue, and documentation about the equipment being purchased. Because the equipment itself often serves as collateral, qualification thresholds can be more accessible than with unsecured loans.
What Can You Buy With an Equipment Loan?
Equipment loans can be used to purchase a wide range of commercial assets — manufacturing machinery, commercial vehicles, kitchen appliances, power tools, servers, computer software, medical devices, product dispensing machines, and more. The defining characteristic is that the asset must be used for a legitimate business purpose. Personal-use items do not qualify.
Is It Better to Buy or Lease Equipment?
Purchasing through a loan is generally more cost-effective over the long term — you own the asset once it's paid off, and timely payments build your credit score. Leasing can make sense when equipment becomes obsolete quickly (like technology) or when maintenance and upgrades are better handled by the lessor. Your HTP advisor can help you model both options for your specific situation.
Can I Finance Used Equipment?
Yes — many lenders offer equipment loans for used or refurbished commercial equipment. Rates may be slightly higher for older equipment, and some lenders have age limits on qualifying assets. Our team works with lenders who specialize in both new and pre-owned commercial equipment financing.
Ready to Get the EquipmentYour Business Needs?
At HTP Solutions, we tailor equipment loan options to your industry, credit profile, and budget — with transparency, integrity, and dedicated support throughout the entire process.
Apply in minutes. No hard credit pull. Zero obligation to accept any offer.