Equipment Financing
Finance the equipment your business needs to grow
$25K – $5MFunding Range
Within 15 daysSpeed
Finance the equipment your business needs to grow
Equipment financing lets you acquire the machinery, vehicles, technology, or tools your business needs without depleting your cash reserves. The equipment itself serves as collateral, which means you don’t have to tie up other assets or credit lines. Whether you’re buying new or used equipment, Bay Street connects you with lenders who specialize in your industry and understand the assets you’re purchasing. We structure deals that preserve your liquidity while giving you the equipment you need to compete.
The asset you’re financing serves as the collateral, so you don’t need to pledge additional business or personal assets.
Instead of a large upfront purchase, spread the cost over 2–7 years with predictable monthly payments that match your budget.
Equipment financing may qualify for Section 179 deductions, allowing you to deduct the full purchase price of qualifying equipment in the year of purchase.
Manufacturing machinery, Commercial vehicles & fleets, Medical or dental equipment, Restaurant equipment, Construction equipment, and Technology & IT infrastructure.
Don’t meet every requirement? Apply anyway — we evaluate the full picture.
Share the equipment details — type, vendor, price — and we’ll match you with lenders who specialize in your equipment type.
Equipment financing approvals typically come within 24–48 hours. We handle the paperwork and vendor coordination.
Once approved, funds go directly to the vendor. You get your equipment and start using it immediately.
Equipment financing is cheaper than general working capital for one structural reason: the equipment secures the deal. If payments stop, the lender repossesses the asset. That collateral lets lenders price in true APR, and stretch terms across the useful life of the machine.
| Credit profile | Typical APR | Term | Down payment |
|---|---|---|---|
| Excellent (700+ FICO, 3+ yrs in business) | 7% – 12% | 36 – 84 months | $0 – 10% |
| Good (650 – 699) | 11% – 18% | 36 – 60 months | 10% – 15% |
| Fair (600 – 649) | 17% – 27% | 24 – 48 months | 10% – 20% |
| Challenged (575 – 599) | 25% – 35%+ | 24 – 36 months | 15% – 25% |
Two factors move these ranges as much as credit does. Asset class: titled, liquid equipment with a deep resale market — highway tractors, excavators, CNC machines — prices better than soft assets like POS systems or custom fit-out, because the lender's recovery is stronger. Age and hours: most lenders cap the term so the loan retires before the equipment does; a 2016 machine will not get 84 months.
Watch the structure, not just the rate. A lower monthly payment often means a balloon or residual at the end of the term, or a $1 buyout vs. fair-market-value lease difference that changes what you own at maturity. Ask which one you are being quoted.
The industry splits at roughly the $250,000 mark, and knowing which side you are on tells you how long this will take.
Application-only — generally up to $250,000. A one-page application, a credit pull, and an equipment quote. No tax returns, no financial statements. Decisions land in hours and funding follows in 1–3 days. This covers the large majority of transactions.
Full package — above $250,000, or for challenged credit at any size. Two years of business tax returns, interim financials, a personal financial statement, and often a debt schedule. Expect 1–3 weeks. The trade is real: rates are meaningfully better and terms longer, because the lender can underwrite the business rather than just the asset.
If you are near the line, it is often worth structuring as two application-only transactions rather than one full-package deal — the paperwork saved can outweigh the small pricing difference. That is a judgement call we make with clients regularly.
Used equipment is fully financeable and frequently the better economic decision. Lenders do apply tighter terms — typically shorter, with a modestly higher rate — but a three-year-old machine at 60% of new cost, financed over 48 months instead of 72, usually beats new on total outlay.
What lenders check on used: age (most cap around 10 years at maturity), hours or mileage, whether the sale is dealer or private-party (private-party takes longer and may need an inspection), and whether a clean title exists on titled assets.
Section 179 lets a business deduct the full purchase price of qualifying equipment in the year it is placed in service — and critically, it applies to financed equipment, not just cash purchases. A contractor who finances a $400,000 excavator with 10% down can potentially deduct the full $400,000 against that year's income while having paid out only $40,000 plus a few months of payments.
That interaction between financing and the deduction is why Q4 is the busiest quarter in equipment finance — and why the asset must be delivered and in service, not merely ordered, before year-end. Confirm current-year limits and your own eligibility with your CPA; the deduction is a tax matter, not a lending one.
| Equipment loan | Lease | Cash | |
|---|---|---|---|
| You own it at the end | Yes | Depends on buyout | Yes |
| Upfront cash required | $0 – 20% | Usually first + last | 100% |
| Monthly payment | Higher | Lower | None |
| Best for | Long-life assets you will keep | Fast-obsolescing tech | Small purchases |
| Preserves working capital | Yes | Yes | No |
The argument against cash is rarely about affordability — it is about opportunity cost. Capital tied up in a machine is capital unavailable for payroll, inventory, or the next job. For businesses with seasonal revenue, financing the asset and keeping the cash buffer is usually the more resilient choice even when cash is available.
Leasing earns its place where obsolescence is the real risk: IT infrastructure, diagnostic equipment, anything on a three-year technology cycle. For a dump truck or a walk-in cooler, ownership almost always wins.
Bay Street places equipment transactions from $25,000 to $5,000,000 across 50+ funding partners. Specialisation matters more here than in any other product — the lender who prices a machine shop best is rarely the one who prices a fleet best.
For a full walkthrough of the process, qualification tiers, and lender comparison, see our complete equipment financing guide and our breakdown of the best equipment financing companies in 2026.
Yes. Bay Street works with lenders who finance both new and used equipment. Used equipment may require an appraisal, and the terms may vary slightly from new equipment financing.
Nearly any business equipment can be financed: vehicles, machinery, medical equipment, restaurant equipment, IT hardware, construction equipment, and more. If it’s a tangible asset your business needs, we can likely finance it.
Many equipment financing programs require zero down payment. Some may require 10–20% depending on the equipment type, your credit profile, and the lender.
Equipment financing rates typically range from 6% to 22% APR depending on your credit profile, time in business, and the equipment being financed. Strong profiles often qualify for single-digit rates.
Equipment financing runs 6–22% APR in 2026. Where you land is driven less by the headline market than by three things: credit profile, time in business, and how readily the equipment resells. Titled, liquid assets — trucks, trailers, standard CNC machines, commercial kitchen lines — price at the low end because the lender can recover value if the deal sours. Specialised or fast-depreciating equipment prices higher. Borrowers with 700+ FICO and 3+ years in business commonly see single digits; newer businesses or 600-range credit should plan on the mid-to-high teens, or bring a larger down payment to buy the rate down.
Heavy and construction equipment — excavators, loaders, cranes, dozers — typically price in the middle of the 6–22% band, because the collateral holds value well but the ticket sizes are large enough that lenders underwrite cash flow closely. Transportation equipment (Class 7–8 trucks, trailers, reefers) often prices similarly, with specialist transportation lenders beating generalist banks on the same file. The practical lever is lender selection rather than the rate sheet: an industry specialist who understands your equipment type will routinely price a deal better than a bank treating it as generic collateral. Bay Street runs one application across 50+ equipment lenders to find that fit.
Bay Street places equipment deals from $25,000 to $5 million. Approval size is anchored to the equipment itself — because the asset is the collateral, lenders will often finance 100% of a vendor quote without a separate down payment, which is why equipment approvals frequently exceed what the same business could get unsecured. Above roughly $250K, expect closer scrutiny of cash flow and existing debt service alongside the equipment value. A vendor quote or invoice plus three months of bank statements is usually enough to get a real number back.
Because the equipment itself serves as collateral, requirements are lighter than unsecured debt: most lenders look for 1+ year in business, $15K+/month revenue, and a 600+ FICO, plus a vendor quote or invoice for the equipment. Newer businesses and 550–600 credit can still qualify with a larger down payment or stronger equipment collateral. Bay Street shops one application across 50+ equipment lenders — bank, captive, and specialist — so what matters is which lender best fits your equipment type and profile.
Equipment financing is one of the faster business finance products: a clean application with a vendor quote and 3 months of bank statements can fund in as little as 1–3 business days, and most deals close within about two weeks. Speed depends on the lender category — specialist and online equipment lenders move fastest, while banks take longer in exchange for the lowest rates. Because the equipment secures the loan, underwriting is simpler than unsecured financing.
Yes — Bay Street finances virtually every commercial category: manufacturing machinery and CNC equipment, heavy and construction equipment (excavators, loaders, cranes), transportation and trucking equipment (Class 7–8 trucks, trailers, reefers), medical and dental equipment, restaurant equipment, and IT hardware. New and used both qualify, from $25K to $5M, with the equipment as collateral. Industry-specialist lenders in our network often price a specific equipment type better than a generalist bank.
One application, no credit impact, and a dedicated specialist to walk you through your options. See what you qualify for in minutes.