How equipment financing works
- You pick the equipment and get a quote from the dealer.
- A lender approves a loan for some or all of the cost.
- The lender pays the dealer.
- You make fixed monthly payments to the lender.
- When the loan is paid off, you own the equipment free and clear.
The equipment is the collateral. Kapitus says it does not require other business assets as cross-collateral.
What it costs
Kapitus publishes a starting rate of 7.5%. Your own rate depends on three things:
- The amount financed
- Your personal credit score. Kapitus says personal credit is weighted heavily.
- Your business’s financial health
Because the loan is secured, equipment financing usually costs less than unsecured working capital.
Why it is easier to qualify for
The lender can recover the equipment if the loan fails. That lowers its risk, which is why:
- No down payment is required for qualified buyers.
- Up to 100% of the cost can be financed.
- Deals up to $500,000 can be decided on the application alone.
What qualifies
The equipment must produce revenue and come from a licensed dealer. Common examples:
- Vehicles and trailers. Box trucks, semis, service vans, food trucks.
- Construction. Excavators, skid steers, lifts.
- Manufacturing. CNC machines, machine tools, robotics, material handling.
- Restaurants. Ovens, refrigeration, POS systems.
- Medical and dental. Treatment units, imaging, lab equipment.
- Shops and services. Auto lifts, salon equipment, laundry machines, fitness equipment.
When it fits
- You need a specific piece of equipment with a known price.
- You want to keep cash in the business.
- You want a fixed monthly payment that matches the equipment’s working life.
When it does not
- The need is cash, not equipment. Look at a line of credit or a term loan.
- The equipment comes with soft costs. Delivery, installation, training, and the months before the machine earns are not part of an equipment loan. We can cover those with working capital financing alongside it.
- The equipment will be obsolete before it is paid off. Match the term to how long you will use it.
- You have under 1 year in business. Kapitus publishes a 2-year minimum. Other lenders it works with start at 1 year. Below that, most equipment lenders will pass.
How to apply
- Get a quote or invoice from the equipment dealer.
- Fill out our short form.
- Complete the lender’s application.
- Review the rate, term, and monthly payment.
- Sign. The lender pays the dealer and you take delivery.
Sources
- Kapitus: Equipment Financing, checked October 12, 2026