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.
This page is one option inside our broader guide to Alternative Financing. See how it stacks up against the other alternative-funding tools we track.
Last updated · Reviewed by Cody Dreis
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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.
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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Important Disclosures
Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
Funding figures and timelines shown on this page are illustrative and represent ranges within our lender network, they are not guarantees and individual outcomes may vary based on business profile, industry, time in business, revenue, credit history, and lender availability. Not all applicants qualify for every product.
The initial inquiry does not impact your personal credit score. Some lenders may perform a hard credit pull during underwriting; Quordx only authorizes such checks with your specific consent for the lender presenting an offer. Applicants are protected under the Equal Credit Opportunity Act (ECOA) from discrimination based on race, color, religion, national origin, sex, marital status, age, or because all or part of an applicant's income derives from any public-assistance program.
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