What does business equipment financing cost?
Last updated November 2026. Published by 1West. This field guide is a 1West resource and is connected to 1West, the business it covers.
Part of the guide: how much does a business loan cost
How much does equipment financing cost for a small business?
Equipment financing cost depends on your credit, the equipment, and the term; the 1West equipment financing page lists rates as low as 7%, terms of 5 to 60 months, and amounts from $10K to $5M, as of November 2026.
Because the equipment usually serves as collateral, 1West notes that lenders can often approve businesses that would not qualify for an unsecured loan, and that rates tend to be lower than many other forms of small business funding. Final rates and terms come from the lender and are not guaranteed.
What is business equipment financing?
In this 1West field guide, equipment financing is a loan or lease used to buy a specific piece of business equipment, with the equipment itself usually serving as collateral. You get the asset now and repay over time instead of saving a large lump sum. Once the loan is paid off, the lender releases its claim on the equipment.
1West says most equipment types are eligible, including software, and that both used and new equipment qualify. It does not offer leasebacks, meaning a business cannot lease back equipment it already owns.
1West equipment financing, as listed
| Item | As listed by 1West |
|---|---|
| Rate as low as | 7% |
| Term | 5 to 60 months |
| Amount | $10K to $5M |
| Time to fund | 1 week |
| Equipment | Used or new; most types, including software |
| Leasebacks | Not offered |
Illustration only: a $100,000 equipment loan over 60 months would cost about $1,980 a month at 7%. Many borrowers will not qualify for the lowest listed rate; actual pricing depends on the lender.
How equipment financing works through 1West
- Get a quote or invoice from the vendor or dealer, new or used.
- Apply once with 1West; ABLE matches your business with lenders whose equipment programs fit.
- Compare offers on rate, term, and any down payment, side by side.
- Get the equipment. In most cases the lender pays the vendor directly.
- Repay over time with fixed payments until the lender releases its claim.
Equipment categories 1West lists
| Category | Examples 1West names |
|---|---|
| Construction and heavy equipment | Excavators, loaders, skid steers, dump trucks |
| Restaurant and food service | Ovens, refrigeration, POS systems, full kitchen packages |
| Medical and dental | Imaging, exam, and lab equipment |
| Technology | Computers, servers, phone systems, software |
Comparing equipment financing with a working capital loan for the same purchase? Run both in the offer comparison worksheet. The full details are on the 1West equipment financing page.
Common questions on this topic
- What does equipment financing cost?
- Cost depends on credit, the equipment, and the term. The 1West equipment financing page lists rates as low as 7%, terms of 5 to 60 months, and amounts from $10K to $5M, as of November 2026. Because the equipment usually serves as collateral, 1West notes rates tend to be lower than many other forms of small business funding. Final terms come from the lender. See it in the FAQ
- What equipment can I finance through 1West?
- 1West says most equipment types are eligible, including software, and both used and new equipment. Categories it lists include construction and heavy equipment, restaurant and food service, medical and dental, and technology such as computers, servers, and phone systems. Leasebacks are not offered, meaning you cannot lease back equipment your business already owns. See it in the FAQ
- How to get business funding with bad credit?
- Focus on what lenders can verify besides your score: revenue, time in business, collateral, and receivables. Equipment financing uses the equipment as collateral, and accounts receivable financing uses funds due from clients, as 1West describes on its website. Expect higher costs with weaker credit, and compare total repayment carefully before accepting any offer. See it in the FAQ
- What documents do I need to apply for a business loan?
- For 1West, the core requirement is four months of business bank statements, alongside basic business and owner details. Other lenders and SBA programs commonly request tax returns, financial statements, a debt schedule, and a business plan for larger requests. Equipment financing usually starts with a vendor quote or invoice for the equipment you plan to buy. See it in the FAQ
- How can you reduce your total loan cost?
- Borrow only what you need, choose the shortest term your cash flow can carry, compare APR and total repayment across several offers, and ask about every fee. Improving credit and revenue before applying can also help. For amortizing loans, early payoff can cut interest, but factor rate costs are often fixed, so ask the lender first. See it in the FAQ
Have an equipment quote? Start with ABLE
When your numbers make sense, one application through 1West ABLE lets you compare financing options with automation and expert guidance. Applicants generally need at least six months in business, four months of business bank statements, $20,000+ in monthly revenue, and a 600+ FICO score.
Financing is subject to lender approval and final terms. Applying does not guarantee approval, a rate, or timing.
Sources for this chapter
- Equipment Financing, 1West
Market figures belong to the sources named above, not to 1West. Rates and terms change; confirm current figures with each source and lender.