Rates today
  • Prime rate 6.75% flat
  • Fed funds 3.63% flat
  • SOFR 3.62% down0.03
  • Treasury 1Y 3.97% down0.09
  • Treasury 10Y 4.63% down0.06
Updated: EST

This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.

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Equipment financing, explained in plain English

Will the asset earn enough before the financing ends?

Equipment financing works best when the asset, complete installed cost, useful life, and expected business return are all visible. Match the repayment term to the period the equipment should remain productive.

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Latest Funding Benchmarks

Updated: EST

The table lists each benchmark, its current value, and its change over 7 days.

Latest Funding Benchmarks
Benchmark Rate 7 days
Bank prime loan rate DPRIME · Common base rate for pricing many variable-rate business loans and credit lines. Source observation dated August 13, 2026. Retrieved August 16, 2026 7:33 pm. Source vintage August 14, 2026. 6.75% flat
Effective federal funds rate DFF · Overnight interbank rate published by the Federal Reserve Bank of New York. Source observation dated August 13, 2026. Retrieved August 16, 2026 7:33 pm. Source vintage August 14, 2026. 3.63% flat
Secured Overnight Financing Rate SOFR · Broad overnight financing benchmark based on U.S. Treasury repurchase transactions. Source observation dated August 13, 2026. Retrieved August 16, 2026 7:33 pm. Source vintage August 14, 2026. 3.62% down0.03
1-year Treasury yield DGS1 · One-year U.S. Treasury constant maturity market yield. Source observation dated August 13, 2026. Retrieved August 16, 2026 7:33 pm. Source vintage August 14, 2026. 3.97% down0.09
10-year Treasury yield DGS10 · Ten-year U.S. Treasury constant maturity market yield. Source observation dated August 13, 2026. Retrieved August 16, 2026 7:33 pm. Source vintage August 14, 2026. 4.63% down0.06

FRED rows are economic benchmarks. Product rows appear only from an approved, sourced methodology and are not lender offers.

Benchmark source: FRED®, Federal Reserve Bank of St. Louis (opens in a new tab)

This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.

Match the financing to the asset

The equipment and the obligation should age together.

A payment can outlast the useful value of an asset—or arrive faster than the asset produces revenue. Start with the complete operating case, not only the purchase price.

1. Price the working asset.

Include delivery, installation, training, software, maintenance, insurance, taxes, and downtime—not only the vendor quote.

2. Estimate useful life.

Compare the financing term with how long the equipment should remain productive, supportable, and appropriate for the business.

3. Model the contribution.

Estimate added capacity, labor savings, reduced outsourcing, or protected revenue, then stress-test a slower ramp-up.

Compare equipment funding paths

Asset ownership, useful life, and flexibility shape the decision.

A dedicated equipment facility can be useful, but a general business loan, SBA-backed option, or line of credit may better fit related project costs.

Asset-Focused Options​

Equipment Financing

Funding secured by or directly connected to the asset.

Compare down payment, lien position, payment schedule, end-of-term ownership, documentation fees, insurance requirements, and whether used equipment is eligible.

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SBA Loans

Program-backed financing for eligible fixed assets.

SBA 7(a) and 504 loans may support qualifying equipment purchases, subject to program and lender rules. Compare eligible costs, documentation, timing, collateral, and term.

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Broader Project Options

Business Term Loans

One amount for equipment plus a larger business project.

A general term loan may fit when equipment is part of a renovation, expansion, or acquisition. Keep the repayment term aligned with the lasting benefit of the project.

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Business Line of Credit

Reusable access for smaller or changing related costs.

A line may cover installation, parts, repairs, or other costs whose timing is uncertain. Avoid using short revolving capacity for an asset that needs a long payoff period.

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What lenders may look for

The asset is only part of the file, not the entire repayment plan.

Lenders may review the equipment, vendor, age, condition, resale value, business cash flow, credit, time in business, down payment, and intended use. The business still needs a credible ability to make payments.

Bring an equipment funding snapshot

  • Vendor and asset details: What is being purchased, from whom, and in what condition?
  • Complete project cost: Which delivery, installation, training, software, or facility costs sit outside the quote?
  • Useful life: How long should the asset remain productive and supportable?
  • Business contribution: What capacity, savings, or revenue should the equipment create or protect?
  • Exit and ownership: Who owns the asset at the end, and what happens if it must be sold or replaced early?
Compare the asset and the obligation together

A low equipment payment can hide a long or restrictive commitment.

Compare total cash required, the full payment schedule, ownership, liens, insurance, end-of-term conditions, and early payoff—not only the advertised monthly amount.

1. What is due at closing?

Confirm down payment, documentation charges, delivery, installation, taxes, insurance, and any deposits. Separate financed costs from cash the business must provide.

2. Who owns what—and when?

Review title, lien position, purchase options, residual value, return conditions, maintenance responsibilities, and whether upgrades or modifications require approval.

3. What happens if plans change?

Ask about early payoff, sale or relocation of the asset, replacement, default, personal guarantees, and whether the remaining balance can exceed resale value.

Equipment Language

Equipment Financing

Funding Types

A loan to buy a specific piece of equipment, where the equipment itself is the collateral. If you stop paying, they take the machine — which is exactly why it's easier to qualify for.

Equipment financing questions

Questions worth answering before you apply.

The strongest comparison connects the asset’s useful life and business contribution to every part of the financing agreement.

It depends on the product and lender. Some facilities may include eligible soft costs, while others finance only the asset purchase. Ask which delivery, installation, training, software, taxes, and facility changes can be included.

Some lenders finance used equipment, but age, condition, valuation, vendor, remaining useful life, and resale market may affect eligibility and terms. Provide complete asset details and an inspection or valuation when requested.

No. Financing and lease structures can differ in ownership, tax treatment, end-of-term choices, maintenance obligations, mileage or use limits, and early termination. Review the actual contract and seek tax or legal advice where appropriate.

Often the financed asset is part of the collateral, but lenders may also require a broader lien or personal guarantee. Ask which assets secure the obligation and what releases the lien after repayment.

Browse our directory of verified lenders

Use the asset plan to focus your lender comparison.

Compare verified lenders according to the equipment type, complete project cost, useful life, ownership priorities, and payment limit you have already defined. Confirm current asset eligibility and terms directly.

3 Verified Lenders

Featured partner

Funder C

Alternative lender

Verified Lender 8.1/10
Funding range
$10K–$5M
Minimum credit score
550+
Funding speed
2–3 days
Rate type
Factor rate
Funder
View summary

Alternative lender with flexible revenue-based products.