Can I get equipment financing with bad credit?

Equipment financing approvals are routine down to a 600 FICO score, with specialty asset‑based lenders funding borrowers with scores of 550 or higher and some lenders allowing scores below 550 when a 25%+ down payment or a cosigner is provided (axiantpartners.com).

Credit score thresholds and lender types

Most lenders approved equipment financing for borrowers with a personal FICO score of 600 or higher, or 575 with specialty lenders, provided the business had at least one year of operation and monthly revenue of $15,000 or more (baystreetlending.com).

Borrowers with a personal FICO score of 600–649 can obtain equipment financing, but they usually face a modest rate premium compared with prime borrowers (smbcompass.com).

• Ask each lender what minimum credit score they accept and whether a down payment or cosigner can lower the requirement.

• Write down the score you were told you need for each lender you contact.

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Interest rates and loan terms you may see

Borrowers with a 600–649 FICO score can expect interest rates of 14–22% APR and typically need to put down 10–20% of the equipment’s purchase price (axiantpartners.com).

In October 2026, typical equipment financing rates ranged from 6% to 22% APR over repayment terms of 2 to 7 years (baystreetlending.com).

Business loan marketplaces report equipment financing rates ranging from about 5% to 25% APR, often including an origination fee (finder.com).

• Request a written quote that shows the APR range and repayment length for the equipment you want.

• Record the APR and term for each quote to compare side‑by‑side.

Review Can I Get Equipment Financing with Bad Credit in District of Columbia? while preparing questions for the lender.

Down‑payment expectations

A down payment of roughly 10% to 20% of the equipment’s price is commonly required by lenders (finder.com).

• Ask the lender the exact down‑payment percentage required for your credit profile.

Why equipment as collateral helps

Equipment is considered the easiest asset to finance with damaged credit because the lender’s recourse is the equipment itself rather than the borrower’s promise to pay (smbcompass.com).

Because the equipment acts as collateral, qualifying for equipment financing with a low credit score is often easier than qualifying for an unsecured small business loan (biz2credit.com).

Many equipment loans for bad credit rely more on soft credit pulls, bank statements, and the asset’s value than on a FICO number alone (biz2credit.com).

• Confirm that the equipment you plan to purchase will be used as collateral and ask how its value affects approval.

• Ask the lender whether they will pull a soft credit check or rely mainly on bank statements and asset value.

Typical documentation you’ll need

Typical documentation required for equipment financing includes a business license, registration, EIN, recent bank statements, a profit and loss statement, and a quote or invoice for the equipment (alwayscapital.com).

• Ask the lender to list the documents it wants to review and write down where to submit them.

• Gather your business license, registration, EIN, recent bank statements, profit and loss statement, and a quote or invoice for the equipment.

Speed of funding and next steps

Approved equipment financing files generally funded within 3 to 5 business days (baystreetlending.com).

Approval for equipment financing with bad credit depends on the lender, the business’s financial health, and the equipment’s suitability as collateral, and it does not automatically guarantee approval (trifectabusinessgroup.com).

• Ask the lender how many business days funding typically takes after approval.

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.

Sources

• axiantpartners.com
• baystreetlending.com
• smbcompass.com
• finder.com
• biz2credit.com
• alwayscapital.com
• trifectabusinessgroup.com