A quick funding process that offers equipment loans to business owners.
Last Updated on April 14, 2025
Shield Funding TeamWhether it’s a conveyor in your sawmill or a commercial oven in a restaurant, many businesses depend daily on core pieces of equipment. If this equipment breaks down, the resulting idle time can harm sales and customer relationships. The faster it’s fixed or replaced, the faster your business can get back on track.
Alternatively, a new and improved machine, such as a ventless hood in your kitchen or multi-step water dispenser, could save you money or increase operating efficiency. Investing in new equipment that supports increased capacity or a new product line could help you expand your business.
There are many reasons that it could be time for a small business owner to purchase new equipment. Unless you have a large sum of capital saved, and spending it on equipment wouldn’t harm your working capital ratios, taking out a business loan to fund these purchases is often your best choice. If you’re ready to apply for an equipment loan now, you can apply online in just a few minutes.
However, if you’re still unclear how much you need to borrow, or the best loan product to meet your needs, read on.
Apply For Your Equipment Loan Today!
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
OR
If you don’t want to wait for an equipment appraisal, or are buying a less expensive piece of equipment, a same day business loan might be your best option. You could pay it off quickly, sometimes in just a few months.
Alternative lenders offer same day business loans with terms of just six to twenty-four months, but at higher interest rates than a bank, 9% to 45%. However, banks often won’t lend for shorter periods of time because the costs of a short term loan are the same as long term loan but they make less money on them. Banks also take months sometimes to put an approval through, definitely nothing near same day funding.
To apply for a same day business loan you must have been in business for a minimum of two years and need a credit score of at least 650. Your businesses minimum monthly revenues must exceed $10,000, but you can borrow as little as $15,000, and there are no prepayment penalties. If you want to pay off the loan quickly, a short term loan could be better for your business than an equipment financing loan.
Unfortunately, the ups and downs of the economy over the past few years could have negatively impacted your business and damaged your credit score. If you had to borrow significantly to get through the pandemic, and saw your credit score slip, traditional lenders may no longer be willing to work with you.
Banks are very picky about lending and reject more loan applications than they approve. Even if your credit score could qualify you for bank financing, other factors also lead to a loan application’s rejection, too. They often want to see over five years in business, or significant cash reserves.
This is what makes a merchant cash advance so attractive. Borrowers with blemishes on their credit histories can get funded quickly, and you could use the proceeds from the advance to purchase equipment. If your business generates monthly revenues above $8,000 and you have a credit score above 500, you can qualify for this type of financing. Shield Funding gives borrowers loans in amounts ranging from $5,000 to $1 million, at rates of 12% to 45%.
If you know that it’s time to take out an equipment financing loan or another loan to purchase equipment, apply today! It takes just a few minutes online, and your loan could be funded the same day.
Businesses have a lot of day-to-day expenses, and that’s what working capital funding is for. Whether it’s covering payroll, stocking inventory, or taking advantage of a marketing or advertising opportunity, these loans help you with the more mundane expenses of running a business.
Like our term loans, you can get up to $1,000,000 in working capital. You still get the option of terms between 12 and 36 months and interest rates from 9–45%. You’ll need to have two months in business, and at least $10,000 in monthly revenue to qualify. You’ll also need a credit score of 650 or better.
If you meet these qualifications, you can get the funding you need the same day to cover any expense you might come across, from an emergency repair to making sure your inventory is full.
Apply for Equipment Financing!
Work with Shield Funding to bring the market’s direct lenders to the table and have them compete for your business. You can save money and get funded the same day in many cases.
Equipment loans are a great solution for business owners who need to purchase machinery or tools to keep their operations efficient and competitive. Whether you’re upgrading outdated equipment, expanding production, or replacing something that broke down, these loans provide the capital you need without requiring large upfront costs. Equipment loans typically range from $10,000 up to $1 million and are secured by the equipment itself, so no additional collateral is needed. Approval is based on factors like time in business, revenue, and overall financial health, with flexible terms and competitive rates available.
If your credit isn’t ideal or you’ve had trouble securing traditional financing, we also offer alternative options to help you acquire essential equipment. Even if you’ve been turned down by a bank, you may still qualify for one of our customized equipment financing solutions. We’re committed to helping business owners of all backgrounds get the tools they need to grow and succeed.
Equipment loans offer business owners a reliable and cost-effective way to purchase essential tools, machinery, or technology needed to operate and grow. Whether you’re upgrading outdated equipment, expanding your production capabilities, or launching a new service that requires specialized tools, equipment financing allows you to spread the cost over time instead of making a large upfront investment. These loans can also help you stay competitive by allowing you to take advantage of time-sensitive opportunities—such as limited-time discounts on new equipment or immediate replacement of broken-down machinery to avoid disruptions.
With flexible terms and fast approval times, equipment loans are a smart option for businesses that need to act quickly. They preserve your working capital and often come with fixed interest rates, making monthly payments predictable and easier to manage. If your business is ready to grow or needs new tools to stay on track, an equipment loan can be the perfect way to move forward without delay.
Before you borrow, analyze how the loan’s payment will impact your budget. Can your business’ cash flows cover daily operating expenses and the monthly loan payment ? If not, either lower how much you plan to borrow or wait to borrow until it’s affordable.
A loan payment consists of a portion of the loan’s capital with interest added to it, spread over the repayment term. Taking out a smaller loan leads to a smaller loan payment because you’re repaying less borrowed capital and the interest due is calculated on a lower amount. Lenders will give you an estimated loan payment when you apply, and you can use this payment to calculate the loan’s impact on cash flows.
Include a repayment plan in your budget, and look at how lower-than-anticipated sales could impact this plan. And try to plan for the unexpected, such as shipment delays or customers who don’t pay on time.
Knowing why you need the money – to replace an under counter fridge, or to buy a new band saw – is an important piece to successful borrowing.
The “why” dictates the “how much” when it comes to borrowing. If you don’t borrow enough money, you could end up having to take out another loan to complete the purchase. If you borrow too much, you’re paying interest and other fees you could have avoided.
Lenders also set equipment financing ranges that they lend within. If you need a small $5,000 loan and the equipment financier you normally work with doesn’t approve loans for less than $50,000 it would be a waste of time to apply. Before approaching lenders, make a list of the equipment you think you need and price out options.
Our equipment loans are a strong choice if you’re looking to finance new or used equipment without tying up your working capital. This type of loan typically offers competitive rates and terms, making it easier to invest in the tools your business needs to operate and grow. While a fair credit score is usually required, we also offer alternative solutions for business owners with lower credit.
Equipment loans are secured by the equipment itself, which may make approval more accessible than traditional financing. However, it’s important to consider the total loan cost and whether the monthly payments fit comfortably into your cash flow. Taking the time to evaluate how the equipment will benefit your operations can help ensure this financing option truly supports your long-term business goals.
Several factors play a role in qualifying for an equipment loan. While your credit score is reviewed, lenders often place more weight on your business’s financial performance and ability to repay. They’ll look at how long you’ve been in business, your monthly revenue, existing debt, and the overall health of your finances. In most cases, the equipment being financed serves as collateral, which can improve your chances of approval even if your credit isn’t perfect. Lenders may also consider the type of equipment you’re purchasing and how essential it is to your operations. A consistent cash flow and stable banking activity will help strengthen your application and increase the likelihood of securing funding.
The amount you can qualify for with an equipment loan depends largely on the cost of the equipment, your business’s financial strength, and the value the equipment provides as collateral. Lenders typically finance a percentage of the total purchase price—often up to 100% for well-qualified borrowers—especially when the equipment has a long useful life and strong resale value. They’ll evaluate your business’s cash flow, time in operation, credit profile, and how essential the equipment is to your operations. A solid financial history and consistent revenue can increase your approval chances and allow you to secure better rates and terms.
With an equipment loan, repayment typically starts soon after the funds are disbursed and is made through regular monthly installments over a set term. These payments usually include both principal and interest and are structured to be consistent, making it easier to manage within your business’s budget. Because the loan is secured by the equipment itself, interest rates can be more favorable than unsecured financing. This predictable repayment plan helps business owners maintain cash flow while building equity in a valuable asset, all without the pressure of large, one-time payments.
This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.
When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.
Yes, equipment loans can offer significant tax advantages. Under Section 179 of the IRS tax code, businesses can deduct up to $1,220,000 of the cost of qualifying equipment purchased or financed during the tax year. Additionally, interest paid on equipment loans is typically tax-deductible, further reducing taxable income.
It depends on the lender and the loan agreement. Some equipment loans, especially those with longer terms like SBA 504 loans, may have prepayment penalties that decrease over time. For instance, a 504 loan might start with a 3% penalty in the first year, decreasing annually until it reaches 0%.
Yes, many lenders allow financing for used equipment, provided it meets certain criteria regarding age, condition, and resale value. However, terms may vary, and some lenders might offer shorter repayment periods or higher interest rates for used equipment compared to new.
Yes, in most equipment loan agreements, the equipment itself serves as collateral. This means if you default on the loan, the lender has the right to repossess the equipment to recover the outstanding debt. This arrangement often allows for more favorable loan terms, such as lower interest rates.
Yes, businesses often use equipment loans in conjunction with other financing methods, such as lines of credit or working capital loans, to meet various financial needs. Combining financing options can provide flexibility, but it’s essential to manage debt responsibly to maintain financial health.
Don’t just take our word for it…
