Equipment Rate Tracker · Updated Weekly

Today's Equipment Financing Rates, July 2026

Q: What are current equipment financing rates (July 2026)?

As of July 1, 2026, equipment rates by program: bank equipment loan 6.50 to 9.50%, SBA 7(a) equipment 9.00 to 9.75% (Prime + 2.25 to 3.0%), captive manufacturer financing 4.99 to 8.99%, equipment lease (operating + capital) 6.99 to 13.99%, sale leaseback 8.50 to 12.50%. Captive financing offers tightest pricing for new equipment from major OEMs (Caterpillar, Deere, Ford, etc.).

Q: What's the difference between equipment loan and equipment lease?

Equipment LOAN: borrower owns the equipment from day 1, finances purchase with debt secured by equipment. Tax: depreciation deduction + interest deduction. Title and residual value belong to borrower. Equipment LEASE: lessor owns equipment, lessee pays use over term. Tax: lease payment deduction. Operating lease has off balance sheet treatment + lower payment. Capital lease (true tax lease) closer to loan economics. Sale leaseback monetizes existing owned equipment.

Q: What's a typical Section 179 / bonus depreciation benefit?

Section 179 (2026 limit ~$1.22M deduction, $3.05M phase out) allows immediate full expensing of qualifying equipment in year of purchase. Bonus depreciation 80% in 2026 (declining schedule from 100% in 2022). Combined: most operators expense ~85 to 90% of equipment cost in year 1 vs. multi year MACRS depreciation. Reduces effective cost of equipment financing by 15 to 25% on tax paying buyers. Use the PeerSense Section 179 Calculator to model your tax savings.

Q: What are SBA 7(a) equipment financing rates?

SBA 7(a) equipment rates 9.00 to 9.75% as of July 2026, Prime + 2.25 to 3.0% variable. Prime currently 6.75%. 10 year term standard for equipment, $5M maximum loan size, full recourse with personal guarantee, 10% borrower equity, SBA guarantee fee 3.5 to 3.75% one time at close. Best fit: borrowers who don't qualify for conventional bank financing OR want SBA's longer term + lower equity than bank. Stackable with MARC working capital revolver for manufacturers.

Q: What is sale leaseback financing?

Sale leaseback monetizes equipment a company already owns. The financier purchases the equipment at fair value, then leases it back to the original owner over a multi year term. Effective rate 8.50 to 12.50%. Use cases: liquidity event without selling the operating asset, balance sheet recap, debt refinance, growth capital. Tax treatment varies by structure (true sale + true lease vs. financing deemed sale). Specialized for $500K to $50M+ equipment values across manufacturing, medical, transportation, technology.

Q: What are captive manufacturer financing rates?

Captive financing rates 4.99 to 8.99% as of July 2026 from manufacturer affiliated finance arms: Cat Financial, John Deere Financial, Ford Credit Commercial, GM Financial, Volvo Financial Services, Komatsu Financial, Kubota Credit, Toyota Industries Commercial Finance, Hyundai Capital Commercial, etc. Best rates available on new equipment from the captive's parent OEM. Offers 0% promotional financing during seasonal sales periods (Q4 fiscal year end common). Delivery + installation + service often bundled.

Q: What's the typical equipment financing term?

Equipment financing term typically matches expected useful life: heavy construction equipment (Caterpillar bulldozers, John Deere excavators) 5 to 7 years, medical imaging equipment (MRI, CT) 5 to 7 years, manufacturing equipment (CNC, injection molders) 5 to 10 years, IT equipment (servers, networking) 3 to 5 years, transportation equipment (trucks, trailers) 5 to 7 years, automation + robotics 7 to 10 years. SBA 7(a) caps at 10 years on equipment regardless of useful life.

Q: Are equipment financing rates going down in 2026?

Equipment financing rates compressed 25 to 50 bps from January to July 2026 as Prime fell ~25 bps and bank credit appetite for equipment lending returned. Captive financing rates compressed more (~50 to 75 bps) on aggressive OEM marketing programs targeting fleet replacement cycles. Forward curves suggest further 25 to 50 bps compression possible if Fed signals additional rate cuts. Section 179 + bonus depreciation accelerate tax effective cost reduction independent of rate moves.

Q: What's the maximum equipment loan amount?

Equipment loan maximums by program: SBA 7(a) $5M, captive financing typically $50M+ (essentially unlimited for established borrowers), bank equipment $25M+ (relationship driven), bank equipment + working capital combined $50M+ for established manufacturers, equipment lease $100M+ on aircraft / large industrial / medical imaging fleets. Sale leaseback $1M to $100M+ depending on equipment fair value + lessor appetite.

Current equipment financing rates as of July 1, 2026 across bank equipment loans, SBA 7(a), captive manufacturer financing, equipment leases, and sale leaseback. Manufacturing, medical, transportation, technology, construction equipment benchmarks. Sourced from active equipment finance lenders weekly.

Quick Answer

What are current equipment financing rates as of July 1, 2026?

As of July 1, 2026, equipment financing rates by program: bank equipment loan 6.50 to 9.50%, SBA 7(a) equipment 9.00 to 9.75%, captive manufacturer financing 4.99 to 8.99%, equipment lease (operating + capital) 6.99 to 13.99%, sale leaseback 8.50 to 12.50%. Captive financing tightest for new equipment from major OEMs.

, PeerSense Capital Advisory · Updated July 1, 2026

Equipment Financing Rates by Program, July 1, 2026

As of July 1, 2026

Program	Current Rate	Term	Loan Size	Best For
Captive Manufacturer Financing	4.99 to 8.99%	3-7 yr	$10M to $50M+	New OEM equipment (Cat, Deere, Ford, GM, Volvo, Kubota)
Bank Equipment Loan	6.50 to 9.50%	3-10 yr	$10M to $25M+	Established borrowers + relationship banks
Equipment Lease (operating)	6.99 to 11.99%	3-7 yr	$10M to $50M+	Off balance sheet treatment + flexibility
Equipment Lease (capital)	7.99 to 12.99%	3-10 yr	$10M to $50M+	Eventually owns equipment + tax depreciation
Sale Leaseback	8.50 to 12.50%	5-10 yr	$10M to $100M+	Monetize existing owned equipment
SBA 7(a) Equipment	9.00 to 9.75%	up to 10 yr	$50K to $5M	Borrowers who don't qualify for conventional
MARC + Equipment Stack (manufacturers)	9.00 to 11.00% blended	20 yr (MARC) + 10 yr (equip)	$5M MARC + $5M 7(a)	NAICS 31/32/33 manufacturers

Captive Manufacturer Financing4.99 to 8.99%
Term
3-7 yr
Loan Size
$10M to $50M+
Best For
New OEM equipment (Cat, Deere, Ford, GM, Volvo, Kubota)
Bank Equipment Loan6.50 to 9.50%
Term
3-10 yr
Loan Size
$10M to $25M+
Best For
Established borrowers + relationship banks
Equipment Lease (operating)6.99 to 11.99%
Term
3-7 yr
Loan Size
$10M to $50M+
Best For
Off balance sheet treatment + flexibility
Equipment Lease (capital)7.99 to 12.99%
Term
3-10 yr
Loan Size
$10M to $50M+
Best For
Eventually owns equipment + tax depreciation
Sale Leaseback8.50 to 12.50%
Term
5-10 yr
Loan Size
$10M to $100M+
Best For
Monetize existing owned equipment
SBA 7(a) Equipment9.00 to 9.75%
Term
up to 10 yr
Loan Size
$50K to $5M
Best For
Borrowers who don't qualify for conventional
MARC + Equipment Stack (manufacturers)9.00 to 11.00% blended
Term
20 yr (MARC) + 10 yr (equip)
Loan Size
$5M MARC + $5M 7(a)
Best For
NAICS 31/32/33 manufacturers

Rates indicative as of July 1, 2026 across active equipment finance lenders. Captive financing rates from major OEM finance arms (Caterpillar Financial, John Deere Financial, Ford Credit, GM Financial, Volvo Financial). SBA 7(a) Prime + 2.25-3.0% variable (Prime 6.75%). Section 179 (2026 limit $1.22M) + 80% bonus depreciation accelerate effective tax-cost reduction.

What Changed This Month (July 2026 vs July 2026)

Prime now at 6.75%, down significantly from 7.75 to 8.50% in 2024 to 2025. SBA 7(a) equipment rates mechanically reflect this at Prime + 2.25 to 3.0% = 9.00 to 9.75%.
Captive OEM 0% promotional financing, Caterpillar Financial + John Deere Financial running aggressive Q2 fleet replacement programs with 0% APR for 36 to 48 months on qualifying new equipment. Limited time pricing.
Sale leaseback spreads compressed 25 to 50 bps, institutional credit appetite for equipment backed liquidity returned in April, particularly on manufacturing + medical imaging.
Section 179 + bonus depreciation, 2026 Section 179 limit $1.22M, 80% bonus depreciation. Combined effective expensing ~85 to 90% of equipment cost in year 1 for tax paying buyers. Use the Section 179 Calculator for tax savings model.

Equipment Financing Program Comparison, July 2026

Captive Manufacturer: 4.99 to 8.99% (tightest on new OEM equipment)
Bank Equipment: 6.50 to 9.50% (relationship + flexibility)
Operating Lease: 6.99 to 11.99% (off balance sheet)
Capital Lease: 7.99 to 12.99% (eventually owns + tax depreciation)
Sale Leaseback: 8.50 to 12.50% (liquidity from existing equipment)
SBA 7(a): 9.00 to 9.75% (when conventional unavailable)

When Each Program Wins

Captive financing wins on new equipment from major OEMs, tightest pricing + bundled installation/service. Bank equipment wins on established borrower relationship + multi asset financing. Operating lease wins on off balance sheet preferences + technology refresh cycles. Sale leaseback wins on liquidity needs without selling the operating equipment. SBA 7(a) wins when conventional bank declines (sub 680 FICO, recent credit event, sub 2yr operating history) + equipment financing is needed.

Where to Go Next

Full equipment financing details at Equipment Financing. Manufacturing equipment specifics at Manufacturing Equipment Financing. Section 179 tax savings at Section 179 Calculator. Manufacturer revolving credit at SBA MARC Loan. Compare across all rate hubs at Commercial Lending Rates Hub.

Current Equipment Rates Frequently Asked Questions

What are current equipment financing rates (July 2026)?+

As of July 1, 2026, equipment rates: bank loan 6.50 to 9.50%, SBA 7(a) 9.00 to 9.75%, captive financing 4.99 to 8.99%, equipment lease 6.99 to 13.99%, sale leaseback 8.50 to 12.50%. Captive financing tightest for new equipment from major OEMs.

What's the best equipment financing rate program?+

Captive manufacturer financing (Cat Financial, John Deere Financial, Ford Credit, GM Financial, Volvo Financial) tightest 4.99 to 8.99% for new OEM equipment. Bank equipment loans 6.50 to 9.50% for established borrowers. SBA 7(a) 9.00 to 9.75% when conventional unavailable. Equipment lease 6.99 to 13.99% offers flexibility.

What's the difference between equipment loan and equipment lease?+

Equipment LOAN: borrower owns from day 1, finances purchase with debt, depreciation + interest deductible. Equipment LEASE: lessor owns, lessee pays use over term. Operating lease has off balance sheet treatment. Capital lease closer to loan economics. Sale leaseback monetizes existing owned equipment.

What's a typical Section 179 / bonus depreciation benefit?+

Section 179 (2026 limit $1.22M deduction, $3.05M phase out) allows immediate full expensing of qualifying equipment. Bonus depreciation 80% in 2026. Combined: most operators expense 85 to 90% of equipment cost in year 1. Reduces effective cost 15 to 25% on tax paying buyers.

What are SBA 7(a) equipment financing rates?+

SBA 7(a) equipment rates 9.00 to 9.75%, Prime + 2.25 to 3.0% variable (Prime 6.75%). 10 year term, $5M maximum, full recourse with personal guarantee, 10% borrower equity, SBA guarantee fee 3.5 to 3.75%. Best fit: borrowers who don't qualify for conventional bank or want SBA's longer term.

What is sale leaseback financing?+

Sale leaseback monetizes equipment a company already owns. Financier purchases equipment at fair value, leases it back over multi year term. Effective rate 8.50 to 12.50%. Use cases: liquidity without selling operating asset, balance sheet recap, debt refinance, growth capital. $500K to $50M+ equipment values.

What are captive manufacturer financing rates?+

Captive financing rates 4.99 to 8.99% from manufacturer finance arms: Cat Financial, John Deere Financial, Ford Credit, GM Financial, Volvo Financial, Komatsu Financial, Kubota Credit, Toyota Industries, Hyundai Capital. Best rates on new equipment from the captive's parent OEM. 0% promotional financing during Q4 fiscal year end.

What's the typical equipment financing term?+

Term matches expected useful life: heavy construction 5 to 7 yr, medical imaging 5 to 7 yr, manufacturing 5 to 10 yr, IT 3 to 5 yr, transportation 5 to 7 yr, automation/robotics 7 to 10 yr. SBA 7(a) caps at 10 years on equipment.

Are equipment financing rates going down in 2026?+

Equipment rates compressed 25 to 50 bps from January to July 2026 as Prime fell ~25 bps and bank credit appetite for equipment lending returned. Captive financing compressed more (~50 to 75 bps) on aggressive Q2 OEM marketing programs.

What's the maximum equipment loan amount?+

SBA 7(a) $5M, captive financing typically $50M+, bank equipment $25M+, equipment lease $100M+ on aircraft/large industrial/medical imaging fleets, sale leaseback $1M to $100M+ depending on equipment fair value + lessor appetite.

Related Rate Hubs & Tools

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.

See current rates

CMBS Conduit

5.60 to 7.10%

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

See current rates

Bridge Loans

9.00 to 14.00%

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

See current rates

Data Center

CRS to 89%

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

See current rates

Contracted revenue sale

Up to 89%

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

See current rates

Hotel Financing

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

See current rates

Private Credit

7.80 to 18.00%

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

See current rates

SBA 7(a) & 504

Search path. Not a growth lane on this desk.

See current rates

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.

Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense sources capital through a curated network of commercial lenders and capital sources. Content is for educational purposes only. Rates and terms reflect approximate July 1, 2026 market conditions and may not reflect conditions at time of reading. Equipment financing pricing varies by equipment type, useful life, borrower credit, captive promotional programs, and tax structure. Consult an active equipment finance originator for transaction specific quotes.