What credit score do I need for equipment financing?

Credit is the lender's underwriting. PeerSense does not set a FICO floor. For asset heavy deals with high value machinery and strong resale markets, some lenders evaluate collateral quality and operator experience. Talk to PeerSense.

How fast can I get approved for equipment financing?

Small ticket deals ($500 to $1.5M) close in 3 to 10 business days. Mid market deals ($25K to $25M) close in 1 to 5 business days. Large ticket heavy equipment ($1M to $100M) takes 2 to 6 weeks due to complex underwriting.

Should I lease or buy my equipment?

Leasing preserves cash and offers tax advantages as an operating expense. Buying builds equity and is better for long life assets. The right choice depends on your tax situation, cash flow needs, and planned use duration.

Can I finance used equipment?

Yes. Most lenders finance used equipment up to 10 to 15 years old depending on asset type and remaining useful life. Older equipment may require larger down payments or shorter terms. Construction equipment, manufacturing machinery, and medical devices qualify at higher ages with strong resale value.

What industries does PeerSense cover for equipment financing?

PeerSense covers manufacturing, construction, transportation, healthcare, agriculture, logistics, food processing, hospitality, mining, aviation, and more. Our capital sources includes sector specialists who understand specific asset values and depreciation curves.

What does PeerSense charge for equipment financing?

PeerSense earns a referral fee at closing. It is paid by the lender, borrower, or split depending on deal structure. The fee is established upfront before any work begins. Initial consultation is free.

Can I finance multiple pieces of equipment in one deal?

Yes. Fleet financing and multi asset deals are common. For larger transactions, master lease agreements or equipment credit facilities allow you to draw down as you acquire additional assets over time.

Do you work with newer businesses?

Most lenders prefer established operators with 2+ years of history and demonstrated cash flow. Newer businesses may qualify through SBA programs or asset heavy deals where equipment value and operator experience drive approval. Strong industry experience and solid collateral improve options.

What are typical equipment financing rates and terms for an excavator if my construction company earned $1.2M last year?

An excavator purchase for an established construction company with strong annual revenue typically falls into the Small Ticket ($500 to $1.5M, 3 to 10 business day close) or Mid Market ($25K to $25M, 1 to 5 business day close) program, depending on the excavator's price and whether it is new or used. Rates run within the overall equipment financing range of 6.5% to 14%, and the Conventional EFA/Loan structure used for used equipment and fleet deals prices around 6.5% to 12% over a 3 to 7 year term with 10 to 20% down. A recent PeerSense arranged deal for a site prep contractor financed an excavator and dozer package at 7.4% fixed on a 5 year term with 15% down. Operators with 2 or more years in business and demonstrated cash flow generally qualify for the more competitive end of that range, while newer businesses with less operating history typically see higher pricing or narrower program options.

Equipment Financing 2026: $100K to $25M+ | Rates from 5.61%

SBA 504, conventional loans, and lease options. Approvals in 24 hours for deals $100K to $1.5M.

/ 01 · Equipment Capital Advisory

Timeline: Day 0 deal sent → Day 2 to 4 term sheets → Day 30 to 45 close

$100K+ minimum|SBA 504 for long life equipment. Equity injection is lender underwriting.|New & used equipment

Get an Equipment Quote Call (317) 452 6990

Institutional capital advisory · PeerSense matches equipment + FF&E deals to a curated SBA 504, conventional + lease finance network · Updated July 2026

Last updated: July 6, 2026·By Ed Freeman, Capital Advisor. PeerSense

Quick Answer

How does equipment financing work for businesses?

Equipment financing covers 80 to 100% of equipment cost with the asset itself as collateral. July 2026 all in rates: conventional equipment loan 9.0 to 12.0%, SBA 504 (CDC portion) 5.50 to 6.50%, captive financing 0 to 8% on promotional offers. Section 179 + 100% bonus depreciation under OBBBA 2026 lets businesses fully expense up to $2.56M of equipment in year 1, with $4.09M phase out threshold.

, PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated July 2026.

$10M to $50M

Equipment Deal Range

5,475

Lenders Tracked

SBA + specialty + captive

$2.56M

Section 179 Deduction Limit

OBBBA 2026

Indicative as of October 1, 2026. Not a quote. Lenders set final pricing at underwriting.

Equipment Financing Rates by Structure, July 2026

As of July 6, 2026

Program	Current Rate	Term	Loan Size	Best For
Conventional Equipment Loan	9.00 to 12.00%	3 to 7 yr	$10M and up	Established borrower, owns at signing
$1 Buyout Capital Lease	8.50 to 11.00%	3 to 7 yr	$10M and up	Loan equivalent, lessor tax benefit
FMV Operating Lease	7.00 to 10.00%	3 to 5 yr	$10M and up	Refresh cycle equipment (printing, fleet, IT)
SBA 504 (CDC portion)	5.50 to 6.50%	10 to 25 yr	$125K to $5.5M	Combined real estate + equipment >$500K
Vendor Financing	0.00 to 8.00%	12 to 60 mo	$10M and up	Promotional manufacturer financing
Captive Financing	0.00 to 7.00%	36 to 84 mo	$10M and up	Caterpillar, John Deere, Toyota, Volvo equipment
Large Ticket & Sale Leaseback	Varies by structure & credit	18 mo to 6 yr	$10M to $100M+	Heavy equipment, manufacturing lines, marine/aircraft, A through D credit considered

Conventional Equipment Loan9.00 to 12.00%
Term
3 to 7 yr
Loan Size
$10M and up
Best For
Established borrower, owns at signing
$1 Buyout Capital Lease8.50 to 11.00%
Term
3 to 7 yr
Loan Size
$10M and up
Best For
Loan equivalent, lessor tax benefit
FMV Operating Lease7.00 to 10.00%
Term
3 to 5 yr
Loan Size
$10M and up
Best For
Refresh cycle equipment (printing, fleet, IT)
SBA 504 (CDC portion)5.50 to 6.50%
Term
10 to 25 yr
Loan Size
$125K to $5.5M
Best For
Combined real estate + equipment >$500K
Vendor Financing0.00 to 8.00%
Term
12 to 60 mo
Loan Size
$10M and up
Best For
Promotional manufacturer financing
Captive Financing0.00 to 7.00%
Term
36 to 84 mo
Loan Size
$10M and up
Best For
Caterpillar, John Deere, Toyota, Volvo equipment
Large Ticket & Sale LeasebackVaries by structure & credit
Term
18 mo to 6 yr
Loan Size
$10M to $100M+
Best For
Heavy equipment, manufacturing lines, marine/aircraft, A through D credit considered

Rates indicative as of July 2026 across the specialty equipment lenders and captive programs in the PeerSense network. Pricing varies with credit, term, age of equipment (new vs used), business years operating.

Estimate Your Equipment Financing Monthly Payment

Updates instantly · Estimates only · Talk to PeerSense for committed pricing

Loan Amount

Interest Rate (% all in)

Term (years)

Monthly Payment

$10,624

Principal + Interest

Total Paid

$637,411

Total Interest

$137,411

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Section 179 Calculator (2026 Tax Strategy) →Get Real Quote from a Lender

2026 Market Data

Q4 2025 Originations: Up 9.2% YoYELFA Confidence Index: Highest in 3 years (Feb 2026)Demand Drivers: E commerce, onshoring, supply chain reconfigurationIndustrial Vacancy: Only 5.8% (Q4 2025)

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Equipment Financing by Deal Profile

Every deal is different. PeerSense matches your credit profile, equipment type, and deal size to the right lender, not the other way around.

Asset Value Underwriting

$10M and upLender underwrites

For established operators with strong collateral, lenders may focus more on equipment value and deal structure than traditional credit metrics alone.

Equipment quality drives approval
Strong collateral can offset credit factors
Structured for experienced operators
Deal specific underwriting approach

Typical approval: 3 to 10 business days

Talk to PeerSense

Mid‑Market Equipment

$10M to $25MA to C Credit

Standard A‑C credit profiles. Most industries covered. Lease and loan structures with faster approval than traditional bank equipment loans.

Competitive rates for strong credit
Faster than bank equipment loans
New and used equipment
Flexible term lengths

Typical approval: 1 to 5 business days

Talk to PeerSense

Challenged Credit & Recent Bankruptcy

$10M to $15MC to D Credit

C‑D credit lenders exist in PeerSense’s network. Recent bankruptcies may still qualify. Equipment serves as primary collateral. The asset matters more than the score.

Recent bankruptcy may qualify
Equipment as primary collateral
Asset value drives approval
Specialized capital sources

Typical approval: 5 to 14 business days

Talk to PeerSense

Heavy Equipment: Construction, Transportation, Mining, Aircraft

$10M to $100MCash Flow Based

Large‑ticket iron. Cash flow underwriting. Specialized lenders who understand asset values in construction, transportation, mining, and aviation sectors.

Cash flow underwriting model
Sector‑specialized lenders
Complex deal structuring
Fleet and multi‑asset financing

Typical approval: 2 to 6 weeks

Talk to PeerSense

Equipment Loan Programs Compared

Current rates as of July 2026. Actual rate depends on credit, time in business, and equipment resale value.

Program	Rate Range	Term	Down	Best For
SBA 504	5.61 to 5.79%	10 to 25 yrs	10%	Owner occupied CRE + equipment, manufacturers
Conventional EFA/Loan	6.5 to 12%	3 to 7 yrs	10 to 20%	Used equipment, fast close, fleet deals
FMV Lease	7 to 18%	2 to 6 yrs	0 to 10%	Tech refresh cycles, preserve cash, Sec 179
$1 Buyout Lease	8 to 16%	3 to 7 yrs	0 to 10%	Want ownership, lower payments than loan
TRAC Lease	6 to 10%	3 to 7 yrs	0%	Trucks, trailers, over the road vehicles

Recent Equipment Closings

SBA 504 ManufacturingQ1 2026

$1.2M

Laser Cutting System, Metal Fabrication

Rate: 5.71% blended | 20 year term

Down: 10%

Conventional ConstructionQ1 2026

$780K

Excavator + Dozer, Site Prep Contractor

Rate: 7.4% fixed | 5 year term

Down: 15%

Medical FMV LeaseQ1 2026

$440K

CT Scanner, Imaging Center

Payment: $7,200/mo | 6 year FMV

Down: $0 ($1 buyout)

Industries We Serve

PeerSense has specialized equipment lenders for every equipment‑intensive sector. If it generates revenue, we can likely finance it.

Manufacturing

CNC machines, injection molding, packaging lines, robotics

Construction

Excavators, cranes, dozers, concrete equipment, scaffolding

Transportation

Class 8 trucks, trailers, fleet vehicles, refrigerated units

Healthcare

MRI, CT scanners, dental chairs, surgical equipment, lab systems

Agriculture

Tractors, harvesters, irrigation systems, grain storage

Logistics

Forklifts, conveyor systems, warehouse automation, pallet jacks

Food Processing

Commercial ovens, mixers, bottling lines, cold storage

Hospitality

Kitchen equipment, laundry systems, HVAC, furniture packages

Program Comparison

Equipment Loan vs Lease vs SBA 504 vs Sale Leaseback: Which Structure Fits Your Capex

Four common ways to finance business equipment, each with fundamentally different tax treatment, ownership at the end of the term, and use of capital. Pick based on how long the equipment will earn, your tax bracket, whether you want to own it at payoff, and whether you already own the asset and want to release capital from it.

	Equipment Loan (EFA) Own from day one	Equipment Lease (Operating) Rent · return at end	SBA 504 (Long life) Lowest rate · 20 to 25 yr	Sale Leaseback Release Capital from Owned Equipment
Ownership During / After Term	Borrower owns from day one · lien released at payoff	Lessor owns · borrower has use rights · $1 buyout, FMV, or return at term end	Borrower owns from day one · CDC holds second lien behind bank first mortgage	Borrower sells equipment to lender, then leases it back · lender owns
Rate Range (July 2026)	7.5% to 12% (credit / collateral driven)	6% to 10% implied (FMV structure)	6% to 7.5% fixed on CDC portion	8% to 13% effective (lease payment reflects asset value + capital cost)
Term	3 to 7 years typical · up to 10 years on heavy / long life equipment	2 to 5 years (operating) · 3 to 7 years ($1 / FMV)	10 years (heavy equipment) · 20 to 25 years (real estate + equipment combined)	3 to 7 years
Advance Rate	80% to 100% of equipment cost (soft costs may be included)	100% of equipment use value over term	Up to 90% (50% bank + 40% SBA + 10% equity) on eligible project cost	70% to 90% of appraised fair market value of existing equipment
Down Payment	0% to 20% of equipment cost	First + last payment (+ security deposit) typical	10% of project (as low as 10% with CDC/bank split)	0% (no new equipment purchase)
Tax Treatment	Borrower depreciates (Section 179 / MACRS / bonus depreciation) · interest deductible	Operating lease: full payment deductible · Capital lease: depreciates + interest	Borrower depreciates · bank interest deductible · CDC portion interest deductible	Lease payment deductible · borrower no longer depreciates (sold the asset)
Section 179 Eligibility	Yes, deduct up to $1.22M (2026) of equipment cost in year one · bonus depreciation on excess	$1 buyout / finance leases = yes · True operating lease = no (payment deductible instead)	Yes, full Section 179 plus bonus depreciation	Not applicable. Already owned; new lease payment deductible as operating expense
Collateral / Security	UCC 1 lien on specific equipment purchased	Lessor retains title · UCC 1 filing	Bank first lien + SBA/CDC second lien on equipment and/or real estate	Lessor takes title · UCC 1 filing
Credit Requirements	Lender underwrites credit and cash flow · 2+ years in business is common	Lender underwrites · smaller businesses may use application only programs up to ~$250K	Lender underwrites · SBA size + industry eligibility · personal guarantee	Asset driven underwriting (equipment value can matter more than a personal score)
Typical Deal Size	$25K to $50M	$25K to $5M (application only ≤ ~$300K)	$500K to $20M (up to $25M max SBA loan)	$250K to $50M
Best For	Long life assets you'll use 5+ years · want to own outright · need Section 179 deduction in year one	Short hold or rapidly obsoleting equipment (tech, servers, vehicles) · want predictable monthly · want flexibility to upgrade	Heavy manufacturing / medical / industrial equipment tied to an owned facility · equity injection is lender underwriting · long life assets	Owner operators sitting on fully paid equipment who need working capital without selling or taking traditional debt
Balance Sheet Impact	Asset on · debt on (capital lease if structured that way)	Operating lease: off balance sheet (pre ASC 842) · post 842: ROU asset + lease liability on balance sheet	Asset on · bank + CDC debt on · lowest P&I payments due to long amort	Removes asset · removes debt · adds operating lease expense · frees cash

Ownership During / After Term

Equipment Loan (EFA): Borrower owns from day one · lien released at payoff

Equipment Loan (EFA)Own from day one: Borrower owns from day one · lien released at payoff
Equipment Lease (Operating)Rent · return at end: Lessor owns · borrower has use rights · $1 buyout, FMV, or return at term end
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Borrower owns from day one · CDC holds second lien behind bank first mortgage
Sale LeasebackRelease Capital from Owned Equipment: Borrower sells equipment to lender, then leases it back · lender owns

Rate Range (July 2026)

Equipment Loan (EFA): 7.5% to 12% (credit / collateral driven)

Equipment Loan (EFA)Own from day one: 7.5% to 12% (credit / collateral driven)
Equipment Lease (Operating)Rent · return at end: 6% to 10% implied (FMV structure)
SBA 504 (Long life)Lowest rate · 20 to 25 yr: 6% to 7.5% fixed on CDC portion
Sale LeasebackRelease Capital from Owned Equipment: 8% to 13% effective (lease payment reflects asset value + capital cost)

Term

Equipment Loan (EFA): 3 to 7 years typical · up to 10 years on heavy / long life equipment

Equipment Loan (EFA)Own from day one: 3 to 7 years typical · up to 10 years on heavy / long life equipment
Equipment Lease (Operating)Rent · return at end: 2 to 5 years (operating) · 3 to 7 years ($1 / FMV)
SBA 504 (Long life)Lowest rate · 20 to 25 yr: 10 years (heavy equipment) · 20 to 25 years (real estate + equipment combined)
Sale LeasebackRelease Capital from Owned Equipment: 3 to 7 years

Advance Rate

Equipment Loan (EFA): 80% to 100% of equipment cost (soft costs may be included)

Equipment Loan (EFA)Own from day one: 80% to 100% of equipment cost (soft costs may be included)
Equipment Lease (Operating)Rent · return at end: 100% of equipment use value over term
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Up to 90% (50% bank + 40% SBA + 10% equity) on eligible project cost
Sale LeasebackRelease Capital from Owned Equipment: 70% to 90% of appraised fair market value of existing equipment

Down Payment

Equipment Loan (EFA): 0% to 20% of equipment cost

Equipment Loan (EFA)Own from day one: 0% to 20% of equipment cost
Equipment Lease (Operating)Rent · return at end: First + last payment (+ security deposit) typical
SBA 504 (Long life)Lowest rate · 20 to 25 yr: 10% of project (as low as 10% with CDC/bank split)
Sale LeasebackRelease Capital from Owned Equipment: 0% (no new equipment purchase)

Tax Treatment

Equipment Loan (EFA): Borrower depreciates (Section 179 / MACRS / bonus depreciation) · interest deductible

Equipment Loan (EFA)Own from day one: Borrower depreciates (Section 179 / MACRS / bonus depreciation) · interest deductible
Equipment Lease (Operating)Rent · return at end: Operating lease: full payment deductible · Capital lease: depreciates + interest
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Borrower depreciates · bank interest deductible · CDC portion interest deductible
Sale LeasebackRelease Capital from Owned Equipment: Lease payment deductible · borrower no longer depreciates (sold the asset)

Section 179 Eligibility

Equipment Loan (EFA): Yes, deduct up to $1.22M (2026) of equipment cost in year one · bonus depreciation on excess

Equipment Loan (EFA)Own from day one: Yes, deduct up to $1.22M (2026) of equipment cost in year one · bonus depreciation on excess
Equipment Lease (Operating)Rent · return at end: $1 buyout / finance leases = yes · True operating lease = no (payment deductible instead)
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Yes, full Section 179 plus bonus depreciation
Sale LeasebackRelease Capital from Owned Equipment: Not applicable. Already owned; new lease payment deductible as operating expense

Collateral / Security

Equipment Loan (EFA): UCC 1 lien on specific equipment purchased

Equipment Loan (EFA)Own from day one: UCC 1 lien on specific equipment purchased
Equipment Lease (Operating)Rent · return at end: Lessor retains title · UCC 1 filing
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Bank first lien + SBA/CDC second lien on equipment and/or real estate
Sale LeasebackRelease Capital from Owned Equipment: Lessor takes title · UCC 1 filing

Credit Requirements

Equipment Loan (EFA): Lender underwrites credit and cash flow · 2+ years in business is common

Equipment Loan (EFA)Own from day one: Lender underwrites credit and cash flow · 2+ years in business is common
Equipment Lease (Operating)Rent · return at end: Lender underwrites · smaller businesses may use application only programs up to ~$250K
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Lender underwrites · SBA size + industry eligibility · personal guarantee
Sale LeasebackRelease Capital from Owned Equipment: Asset driven underwriting (equipment value can matter more than a personal score)

Typical Deal Size

Equipment Loan (EFA): $25K to $50M

Equipment Loan (EFA)Own from day one: $25K to $50M
Equipment Lease (Operating)Rent · return at end: $25K to $5M (application only ≤ ~$300K)
SBA 504 (Long life)Lowest rate · 20 to 25 yr: $500K to $20M (up to $25M max SBA loan)
Sale LeasebackRelease Capital from Owned Equipment: $250K to $50M

Best For

Equipment Loan (EFA): Long life assets you'll use 5+ years · want to own outright · need Section 179 deduction in year one

Equipment Loan (EFA)Own from day one: Long life assets you'll use 5+ years · want to own outright · need Section 179 deduction in year one
Equipment Lease (Operating)Rent · return at end: Short hold or rapidly obsoleting equipment (tech, servers, vehicles) · want predictable monthly · want flexibility to upgrade
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Heavy manufacturing / medical / industrial equipment tied to an owned facility · equity injection is lender underwriting · long life assets
Sale LeasebackRelease Capital from Owned Equipment: Owner operators sitting on fully paid equipment who need working capital without selling or taking traditional debt

Balance Sheet Impact

Equipment Loan (EFA): Asset on · debt on (capital lease if structured that way)

Equipment Loan (EFA)Own from day one: Asset on · debt on (capital lease if structured that way)
Equipment Lease (Operating)Rent · return at end: Operating lease: off balance sheet (pre ASC 842) · post 842: ROU asset + lease liability on balance sheet
SBA 504 (Long life)Lowest rate · 20 to 25 yr: Asset on · bank + CDC debt on · lowest P&I payments due to long amort
Sale LeasebackRelease Capital from Owned Equipment: Removes asset · removes debt · adds operating lease expense · frees cash

Indicative only, as of July 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Program criteria current as of July 2026.

Section 179 annual limits updated per IRS guidance: $1.22M in 2026 with phase-out beginning at $3.05M in equipment purchased. Bonus depreciation for 2026 is 60% (40% phase-down vs. 2025 at 80%). Rate ranges reflect indicative July 2026 market pricing. Actual terms depend on equipment type, useful life, credit profile, and lender. Tax treatment simplified. Consult your CPA.

Equipment Capital Channels

Where Equipment Debt Comes From in 2026

Equipment financing routes through four distinct channels, each with different ticket sizes, application thresholds, and asset type appetite. PeerSense matches every deal to the channel and lender that best fits the borrower + asset profile.

Independent Specialty EFAs

Independent equipment finance companies dominate the $25K to $250K app only band with 2 to 5 day credit decisions. Broad asset type appetite (technology, construction, transportation, light manufacturing). Faster than banks on smaller deals.

Bank EFA Divisions

The top ten bank equipment finance divisions handle $250K+ tickets with full doc underwriting. Strongest on healthcare, manufacturing, transportation, and SBA 504 equipment combos.

Captive / Vendor Programs

Manufacturer captive finance arms (Caterpillar Financial, John Deere Financial, Volvo Financial Services, Toyota Industries Commercial Finance, Komatsu Financial, PACCAR Financial, Kubota Credit, GM Financial Commercial, Daimler Truck Financial) offer the cheapest rates, often 0 to 4% promotional, but only on the manufacturer's own equipment.

SBA 504 Equipment + Real Estate

SBA 504 (~5.50 to 6.50% on the CDC portion, 25 yr fixed) is typically the cheapest debt for combined real estate plus equipment projects ≥ $500K total. Routed through a participating bank + Certified Development Company partnership.

Worked Example

$500K CNC Machine Tool: Tax Adjusted Effective Cost

Manufacturing sponsor in 24% federal + 5% state bracket purchasing a $500,000 CNC machining center via 60 month equipment loan at 9.0%. Section 179 + bonus depreciation walk through under 2026 OBBBA rules.

Equipment + Loan

Equipment cost: $500,000
Down payment (10%): $50,000
Loan amount: $450,000
Rate: 9.00% (60 mo EFA)
Monthly P&I: $9,341
Total interest paid over term: $110,460

Year 1 Tax Treatment

Section 179 deduction (cap $1.22M, well within): $500,000
Bonus depreciation (60% on excess in 2026): $0 (Section 179 covered full cost)
Year 1 deductible interest: $38,275
Total Year 1 tax deductible expense: $538,275
Combined federal + state tax rate: 29%
Year 1 tax savings: $156,100

Effective Cost Analysis

Sticker price: $500,000
Year 1 tax savings: −$156,100
Year 1 effective cost: $343,900
Tax savings reduce effective Year 1 capital outlay by 31.2%. Subsequent years pay only interest deduction (declining annually) plus the operating loan payment. Total 60 month effective cost net of Year 1 deduction: ~$471,200 vs $610,460 stick price + interest.

Section 179 deduction limit for 2026 is $1.22M with phase out beginning at $3.05M in total equipment purchased. Bonus depreciation for 2026 is 60% (phasing down from 100% in 2017 to 2022). Above the $1.22M Section 179 cap, equipment can still be 60% bonus depreciated in Year 1. Always confirm tax treatment with your CPA.

Run Your Numbers in the Section 179 Calculator →

Lease vs. Loan: Which Structure Fits?

The right structure depends on your tax situation, cash flow needs, and how long you plan to use the equipment. Here's a side by side breakdown.

Equipment Lease

Use the equipment without owning it

Ownership:Lender retains ownership during term

Down Payment:Little to none, preserves cash

Tax Treatment:Payments may be fully deductible as operating expense

Balance Sheet:May be kept off balance sheet (operating lease)

End of Term:Return, purchase at fair market value, or renew

Best For:Technology, medical devices, equipment that depreciates quickly

Upgrade Flexibility:Easy to upgrade at end of term

Equipment Loan

Own the equipment from day one

Ownership:You own the equipment from day one

Down Payment:Typically 10 to 20% required

Tax Treatment:Depreciation deductions + interest expense

Balance Sheet:Asset and liability both appear on balance sheet

End of Term:Equipment is yours, no residual payment

Best For:Long life assets: heavy machinery, real property improvements, vehicles

Equity Building:Builds equity in the asset over time

Equipment Lease

Ownership:Lender retains ownership during term

Down Payment:Little to none, preserves cash

Tax Treatment:Payments may be fully deductible as operating expense

Balance Sheet:May be kept off balance sheet (operating lease)

End of Term:Return, purchase at fair market value, or renew

Best For:Technology, medical devices, equipment that depreciates quickly

Upgrade Flexibility:Easy to upgrade at end of term

Not sure which is right? PeerSense can model both structures for your specific deal and show you the total cost of ownership comparison. No charge for the analysis.

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Explore Equipment Financing Options

Specialized equipment financing programs for different needs

Heavy Equipment: $10M to $100M

Large ticket construction, transportation, mining, and aircraft equipment financing.

Learn More

Restaurant Equipment Financing

Hood lines, walk ins, ovens, POS, and full kitchen build outs. Loan, lease, SBA 504, and vendor structures for QSR, fast casual, and full service operators.

Learn More

Sale Leaseback

Turn owned equipment into working capital. Keep using the equipment while accessing cash.

Learn More

Quick Answer

Our construction company earned $1.2M last year. What are typical equipment financing rates and terms for an excavator?

An established contractor with $1.2M in revenue financing an excavator typically fits the small ticket or mid market equipment programs. Close follows underwriting. There is no 5 day close program depending on the excavator's price and whether it's new or used. Pricing runs 6.5 to 12% on the Conventional EFA/Loan structure over a 3 to 7 year term with 10 to 20% down, similar to a recent PeerSense arranged excavator and dozer deal priced at 7.4% fixed over 5 years. Two or more years in business and demonstrated cash flow earn the more competitive end of the range.

, PeerSense Capital Advisory. Grounded in current program rate ranges and a recent arranged deal.

Quick Answer

My credit score is just over 500. What equipment financing rates can I expect for a $50K CNC machine?

Credit is the lender's underwriting. PeerSense does not set a FICO floor. Pricing moves with the file. A weaker personal score often sits toward the top of the 6.5 to 14% range, if a deal can be structured at all. On asset heavy deals like a $50K CNC machine, some lenders weigh the equipment's resale value and the operator's cash flow and experience alongside credit score rather than relying on the score alone. That is not a guarantee of approval at any score.

, PeerSense Capital Advisory. Not a guarantee of approval at any credit score.

Frequently Asked Questions

Credit is the lender's underwriting. PeerSense does not set a FICO floor. For asset heavy deals, some lenders weigh equipment value, cash flow, and operator experience. Talk to PeerSense.

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Sources & References

Equipment Finance Sources & References

IRS: Section 179 Deduction: Authoritative IRS Publication 946 on Section 179 + bonus depreciation rules that drive equipment finance economics.
U.S. Small Business Administration: 504 Loan Program: SBA 504 program: fixed rate financing for major equipment + facility purchases.
Federal Reserve: Selected Interest Rates (H.15): Prime + Treasury benchmarks underlying equipment finance loan + lease pricing.
Equipment Leasing and Finance Association: Monthly Confidence Index: Industry confidence + origination data across captive, bank, and independent equipment lessors.

External links are provided for informational and verification purposes. PeerSense is not affiliated with and does not endorse any third party site. Information was current at the time of publication.

Go Deeper on Equipment Financing

Equipment lender shortlists, Section 179 strategy, and industry specific equipment financing scenarios.

Lender Shortlists

Editorial Guides

Specialty Scenarios

See Related Rates by Program

PeerSense covers the full commercial capital stack. These are indicative levels direct capital sources have been pricing across these programs as of October 1, 2026.

Originator warehouse

$100M a month

Focus $100 million a month. Will look at $10 million a month. $10 million is not the focus.

See current rates

Invoice Factoring

0.5 to 3.5% / 30d

B2B invoices from $20 million a month. Advance 80 to 95 percent of face.

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CMBS Conduit

5.60 to 7.10%

10 year Non Recourse fixed, $10 million and up, fully assumable

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Bridge Loans

9.00 to 14.00%

$10 million and up. Cash in about 35 percent. Name the takeout first.

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Data Center

CRS to 89%

$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.

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Contracted revenue sale

Up to 89%

15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.

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Hotel Financing

Hotel financing is search only for $10 million and up, with cash in about 35 percent.

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Private Credit

7.80 to 18.00%

Non bank flexibility for commercial real estate at $10 million and up.

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SBA 7(a) & 504

Search path. Not a growth lane on this desk.

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Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
Edward L. Freeman founded PeerSense in January 2020.
In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed October 2, 2026LinkedIn profile About Edward Freeman