If you operate a business in an equipment-heavy industry like construction, transportation, or restaurants, you’re constantly in the market to buy or lease new equipment. In this guide, we’ll explore the current best lending solutions for an equipment loan. We analyzed 138 companies nationwide to identify the top 5 alternative lenders. The ratings were compiled based on reviews from customers on TrustPilot, interest rates, speed of application process, approval rates, and statistics from the Small Business Administration. Without further ado, here are the top five lenders:
1. Clarify Capital: Best Equipment Loan for Instant Approval
A boutique lending firm based out of New York City, Clarify’s core mission is helping small business owners achieve success. They do this by specializing in unsecured short-term loans, unsecured business lines of credit, and equipment financing. Offering some of the lowest interest rates, Clarify Capital’s core offering is their hands-on concierge service and fast approval process. A dedicated loan advisor assigned to you to handle all the paperwork and application process. This frees up your time to run your business and avoid filling lengthy applications.
2. SBA: Best Equipment Loan for Excellent Credit
An SBA 7(a) or Micro-loan offer some of the lowest interest rates in the space. If you have a great personal credit score and are willing to go through a hefty application process, SBA loans are the way to go. The SBA doesn’t lend money themselves, however, they have approved lenders and up to 80% of the loan is backed by the government agency. That lowers the downpayment you have to put down to secure the funding. The downside is that most businesses don’t meet the strict requirements of an SBA loan.
3. American Express: Best Lender for AMEX Card Holders
If you have an American Express Business Platinum card, you can get up to $50,000 as an unsecured working capital loan. The primary benefit is the ease of transaction as the entire process happens through your account’s portal. In most cases, $50K can be enough to cover day to day expenses and smaller equipment purchases. But if you’re looking to buy or lease more expensive equipment, a traditional term loan can be a better fit.
4. Kabbage: Best Lender for Line of Credit
Get quick access to working capital with a Kabbage business line of credit. They specialize in credit lines that range from $2,000 to $250,000. Kabbage is a good fit for business owners with bad credit scores looking for short repayment terms of 1 year or less. The approval process is fast and easy, but interest rates are higher than other lenders on this list.
5. OnDeck: Best Equipment Loan for Bad Credit
OnDeck was one of the primary lending companies to go completely digital with their applications. The main lending products offered by OnDeck are business term loans and revolving lines of credit. They have low credit rating requirements that allow for founders with less than 650 credit score to get approved. Since the business requirements are lax, expect to pay a higher interest rate with shorter term lengths.