Equipment Financing — The Asset Qualifies Itself
Last updated: July 2026 · By the Your Capital Sources editorial team
Equipment financing funds the purchase of revenue-producing equipment — trucks, machinery, medical and shop equipment — with the equipment itself serving as collateral. Because the asset secures the deal, approval leans on its value and your revenue rather than credit alone, and through our partner REIL Capital, decisions come within 24 hours.
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How it works
- Pick the equipment — new or used, from any vendor; get the quote or invoice.
- Get it structured — a specialist reviews the asset and your revenue, then presents fixed-payment terms. Decisions within 24 hours.
- The funder pays the vendor — you take delivery and the machine starts earning while you repay on schedule.
Finance vs lease vs cash
| Finance | Lease | Cash | |
|---|---|---|---|
| Ownership | Yours (asset on your balance sheet) | Lessor's until buyout | Yours immediately |
| Upfront cost | Low | Lowest | Full price |
| Total cost | Purchase + financing cost | Often highest over time | Lowest |
| Cash preserved | Yes | Yes | No |
| Best when | Equipment earns from day one | Tech that obsoletes fast | Reserves are deep |
The math that matters
The only question worth asking: will the equipment earn more per month than it costs per month? A truck that books $9,000/month against a $2,500 payment is a growth engine regardless of rate. A machine that sits idle is expensive at any rate. Bring the revenue estimate to your specialist call — it shapes the structure.
What can be financed
- Trucks, trailers, and fleet vehicles
- Construction and earth-moving machinery
- Medical, dental, and veterinary equipment
- Manufacturing and packaging lines
- Restaurant and food-service buildouts
- Shop tools, lifts, and diagnostics
Industry-specific notes live on the industries page.
Qualification
- ~$250K+ annual revenue (or ~$15K+ monthly)
- 6+ months in business
- 3 months of business bank statements + the equipment quote
- 500+ FICO paths — the asset does the heavy lifting
Equipment financing FAQ
How does equipment financing work?
You select the equipment, the funder pays the vendor (or reimburses you), and the equipment itself serves as collateral while you repay on a fixed schedule. Because the asset secures the deal, approval weighs its value and your revenue more than credit alone — decisions come within 24 hours through REIL Capital.
Should I finance equipment or pay cash?
Finance when the equipment starts earning immediately and preserving cash matters — the payment comes out of the revenue the machine generates. Pay cash when financing costs would exceed the value of keeping reserves. Most growing businesses finance revenue-producing equipment and keep cash for operations.
What equipment can be financed?
Most revenue-producing business equipment: trucks and trailers, construction machinery, medical and dental equipment, manufacturing lines, restaurant kitchens, shop tools, and technology. New and used both qualify, subject to the funder's asset review.
Can I get equipment financing with bad credit?
Often — the collateral relaxes the credit bar. REIL Capital's paths start around 500+ FICO with roughly $250K annual revenue, and checking involves no hard credit pull.
How fast can equipment be funded?
Decisions within 24 hours; funding typically follows in days, so the machine can be earning within the week rather than after a multi-week bank process.
Get that machine earning this week
Decisions within 24 hours · New or used equipment · Fixed payments
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