Can I get equipment financing with bad credit?

Often yes, because the equipment secures the financing. Expect a higher rate, a shorter term, and a down payment.

What credit score is needed for equipment financing?

There is no universal minimum. Lenders weigh the equipment, down payment, time in business, and revenue along with the score.

What does a $50,000 equipment loan cost with weak credit?

Across the representative 8%–30% APR, $1,567–$2,123 a month over 36 months, with weaker credit toward the upper figure.

WithFunded › Best-of guides › By product

Best equipment financing for bad credit in 2026

The best equipment financing for bad credit is a standard equipment loan with a larger down payment, because the equipment as collateral does much of the work your score cannot. A sale-leaseback raises cash from equipment you already own. Expect a shorter term and a rate toward the top of the range, and choose equipment with strong resale value.

By the WithFunded team · Published November 11, 2026 · Rates as of November 2026

The short list

Best overall with money down: Equipment loan
Best for a lower payment: Equipment lease
Best if you own equipment outright: Equipment sale-leaseback
Best for a small equipment purchase: SBA microloan

The 4 best options, ranked

1. Equipment loan Best overall with money down

A lender that can repossess and resell the equipment is taking less risk on you. A down payment of meaningful size often turns a decline into an approval.

Watch for: Older or highly specialized equipment gets shorter terms and higher rates. Equipment financing guide →
2. Equipment lease Best for a lower payment

Some lessors work with challenged credit and keep ownership of the equipment, which lowers their risk and your payment.

Watch for: On a fair-market-value lease you do not own the equipment unless you pay the buyout. Equipment financing guide →
3. Equipment sale-leaseback Best if you own equipment outright

Borrowing against paid-off equipment depends on its value, not your score, and can fund a down payment or working capital.

Watch for: You turn an asset you own into a monthly payment, so the cash has to earn more than it costs. Equipment financing guide →
4. SBA microloan Best for a small equipment purchase

A nonprofit microlender will look at your whole situation for equipment under $50,000.

Watch for: Small amounts, and availability depends on an intermediary lender serving your area.

Side-by-side comparison

Option	Verdict	Cost basis	Funding speed	Qualifies on
Equipment loan	Best overall with money down	Representative 8%–30% APR, with the term matched to the equipment's useful life	Days to weeks	The equipment is the collateral, which can offset a thinner credit profile
Equipment lease	Best for a lower payment	A monthly lease payment; total cost depends on the end-of-term buyout	Days to weeks	The equipment is the collateral; often less cash up front than a loan
Equipment sale-leaseback	Best if you own equipment outright	Lease-style pricing on equipment you already own	Days to weeks	The resale value of equipment you own free and clear
SBA microloan	Best for a small equipment purchase	Rate set by the nonprofit intermediary; loans up to $50,000	Weeks	Open to startups and thinner credit, often paired with business training

What it costs

Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.

Amount	24 mo	36 mo	48 mo
$20,000	$905–$1,118	$627–$849	$488–$720
$50,000	$2,261–$2,796	$1,567–$2,123	$1,221–$1,800
$120,000	$5,427–$6,710	$3,760–$5,094	$2,930–$4,321

Financing $50,000 over 36 months costs about $1,567–$2,123 a month, or $6,405 to $26,413 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.

What lenders look at

The equipment's resale value. Common trucks and machines are easier than specialized ones.
How much you can put down.
Recent payment history, even if the overall score is low.

Mistakes to avoid

Agreements with end-of-term buyouts you cannot afford.
Paying a broker's upfront fee for a guaranteed approval.

Frequently asked questions

Can I get equipment financing with bad credit?: Often yes, because the equipment secures the financing. Expect a higher rate, a shorter term, and a down payment.
What credit score is needed for equipment financing?: There is no universal minimum. Lenders weigh the equipment, down payment, time in business, and revenue along with the score.
What does a $50,000 equipment loan cost with weak credit?: Across the representative 8%–30% APR, $1,567–$2,123 a month over 36 months, with weaker credit toward the upper figure.

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What our clients say

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Terry Gossman, Oct 29, 2026Landon and Austin were greatLandon and Austin were great. Knowledgable and explained everything in a way that made it all really easy to understand. I avoid these call like the plague but these two were a joy to work with.

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How we ranked these options

This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.

WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.

Related guides

The top-ranked option on this page is equipment loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.

Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.