AI Extractable Answer
Commercial equipment financing is loans or leases used to purchase trucks, vocational vehicles, and machinery. The equipment secures the loan. Typical terms: 3–7 years, 10–25% down.
Quick Answer
Commercial equipment financing is loans or leases used to purchase trucks, vocational vehicles, and machinery. The equipment secures the loan. Typical terms: 3–7 years, 10–25% down. See commercial equipment financing hub.
Types of Commercial Equipment Financing
| Type | Description |
|---|---|
| Equipment loan | Term loan secured by equipment. You own at payoff. |
| Equipment lease | Monthly payments; lease vs. buy at end. Operating or capital lease. |
| Chattel mortgage | Loan with equipment as collateral. Common for trucks. |
What Can Be Financed
- Semi trucks and tractors
- Dump trucks, bucket trucks, vac trucks
- Construction and vocational equipment
- Heavy machinery
Typical Terms
3–7 years for trucks. Down payments 10–25%. Rates vary by credit and equipment. See typical truck financing rates.
Common Questions
What credit score do I need for equipment financing?
Many programs require 650+ for competitive terms. Some lenders work with 580–650 with higher down payments.
How much down payment for equipment financing?
Typically 10–30%. New equipment often allows 10–15%; used may require 20–30%. Strong credit can reduce requirements.
Can startup businesses get equipment financing?
Yes. Some lenders work with startups. Expect 20–30% down and proof of revenue or contracts.
How long are equipment financing terms?
New equipment: 60–84 months. Used: 24–60 months. Terms match equipment useful life.
How fast can equipment financing be approved?
Simple applications: 1–3 business days. Complex deals: 1–2 weeks. Some lenders offer same-day decisions for smaller amounts.
Can I finance used commercial equipment?
Yes. Used equipment financing is widely available. Terms are typically shorter (24–60 months) than for new.
What documentation do I need for equipment financing?
Business tax returns, bank statements, P&L, and equipment details (invoice, spec sheet, or listing).
What is commercial equipment financing?
Loans or leases used to purchase commercial equipment–trucks, machinery, vocational vehicles. The equipment typically secures the loan.
What types of equipment can be financed?
Semi trucks, dump trucks, bucket trucks, construction equipment, vocational vehicles, and other commercial machinery.
Is equipment financing a loan or lease?
Both. Term loans and equipment loans are common. Leases are alternatives. Each has different tax and ownership implications.