Can I Get Equipment Financing with Bad Credit?

Can I Get Equipment Financing with Bad Credit?

Yes—you can get equipment financing with a 620‑679 FICO. Specialized lenders offer 9‑13% APR on 60‑72 month loans.

Check rates in 2 minutes—no credit‑score hit.

The specifics

A bad‑credit equipment lender will typically look for:

• Credit score: 620‑679 FICO – the minimum for most trade lenders  (SBA)
• Time in business: 12‑18 months  (CapexResources)
• Annual revenue: $100,000+ recommended, though 3‑6 months of solid bank statements can offset a lower turnover  (NationalFunding)
• Down payment: 10‑20% (BPA ‑ 15‑20% is the SBA range  (SBA))
• Term: 60‑72 months (SBA caps at 84 months  (SBA))
• APR: 9‑13% for equipment loans  (SBA)
• Debt‑to‑income ceiling: Monthly debt service must be 8‑12% of gross revenue  (SBA))
• DSCR requirement: 1.25×  (SBA))

Use our affordability calculator to see how much you need to put down and how it will affect your monthly payment. If you’re looking to scale further, inspect the Working Capital for Electrical Contractors page for loan or line‑of‑credit options that can be paired with equipment financing.

Qualification & edge cases

• 620‑640 FICO: Most lenders still approve, but you’ll likely see a 3‑5% APR premium and a 15‑20% down‑payment demand. A co‑signer or collateral (e.g., a commercial van) can lower the APR by 1‑3% (SBA).
• 620‑679 with a recent bankruptcy: SBA lenders generally require at least 2 years of positive payment history after a Chapter 7 discharge. Some specialized lenders may approve after 18‑24 months, but rates will rise to 13‑16% (NationalFunding).
• Below 620: Options narrow. Look for credit‑specifically tailored lenders, or consider leasing where the focus is on equipment use rather than credit history (CapexResources).
• States with hard‑credit programs: Many states run programs that allow lower scores to qualify for equipment funding. Refer to state‑specific guides like [bad‑credit‑alabama] for local options.

Background & how it works

Equipment financing treats the purchased tool or van as collateral. Lenders review your business bank statements, profit‑and‑loss outlook, and the equipment’s resale value. The SBA, as the primary guarantor, sets 9‑12% APR limits and 8‑12% debt‑service ratios, ensuring the loan is affordable. Providers routinely pull a soft‐credit pre‑check, meaning you can see a rate quote without damaging your credit score (SBA). Acceptance generally takes 30‑45 days, but multiple lenders in the trade space now offer 5‑10 business day turnaround for bad‑credit applicants (CapexResources).

Bottom line

Even with a 620‑679 FICO, you can still get a competitive equipment loan: 9‑13% APR, 60‑72 month term, and a 10‑20% down payment. Start by plugging your numbers into the calculator now to see your exact rate—no hard pull, no score hit.

Disclosures

This content is for educational purposes only and is not financial advice. electricians.finance may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• SBA
• NationalFunding
• CapexResources