Funding option

Equipment Financing

The equipment secures the financing, so rates stay lower. Finance machinery, vehicles or tech using the equipment itself as collateral.

Written and reviewed by the BFG Funds Editorial Team · Updated October 15, 2026

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Funding amount: $20K – $2M
Speed to funding: 2–5 business days
Typical term: 2–7 years, matched to useful life
Typical cost: Fixed monthly payments; rates depend heavily on credit, time in business and the type of asset

Overview

Is equipment financing the right fit?

Because the asset itself is the collateral, equipment financing usually beats unsecured options on rate — often with little or nothing down and possible Section 179 tax treatment (ask your tax advisor).

Trucks, trailers and fleet vehicles
Construction, manufacturing and shop machinery
Medical, kitchen, and technology equipment

Pros

Lower rates than unsecured funding
Little or nothing down in many cases
Payments spread over the asset's useful life

Cons

Money can only be used for the equipment
Older or specialized assets are harder to finance
The equipment can be repossessed if you default

How it works

From application to funded in four steps

Send the equipment quote

Vendor invoice or spec sheet tells lenders the asset value and useful life.

Credit and asset review

Lenders review you and the equipment together, which helps keep the rate down.

Choose your structure

Term length, down payment and end-of-term options such as a $1 buyout.

Vendor gets paid

The lender pays the vendor directly and you take delivery — payments usually begin the next month.

Typical time to funding for this program: 2–5 business days.