Equipment financing: real rates and real timelines

No teaser rates and no 60-second miracles. Here is what equipment financing actually costs a US manufacturer, how long it actually takes, and what moves your number.

The short answer

Equipment financing lets a manufacturer buy a machine now and pay for it over its productive life, with the machine itself as collateral. Directional pricing runs about 7-18% APR, funding can cover up to 100% of the cost, and a complete file typically funds in 5-15 business days. Your actual offer depends on your credit, time in business, revenue, and the equipment itself.

Real rate ranges

Anyone quoting you a specific rate before seeing your file is guessing. What we can give you is the honest band:

Strong file (established shop, clean credit, titled new equipment): the low end of the range, roughly 7-10% APR.
Average file (a few years in business, decent credit, standard machine): the middle, roughly 10-14% APR.
Stretched file (newer shop, bruised credit, used or specialized equipment): the high end, roughly 14-18% APR, sometimes with a larger down payment.

The machine matters as much as the borrower. A CNC mill with a deep resale market prices better than a custom-built line with 1 buyer in the world.

The real timeline, step by step

Quick app or a call (day 0). Basic info on the business, the equipment, and the seller. Free, no obligation.
Placement (day 0-1). The file goes to the equipment funder whose box it fits, not a blast to every lender on the internet.
Full application and documents (day 1-3). Bank statements, the equipment quote or invoice, and basic financials.
Underwriting (day 3-7). The funder reviews credit, cash flow, and the equipment. Used or private-party deals add appraisal time here.
Offer and signing (day 5-12). You review the real terms and sign directly with the institution.
Funding (day 8-15). The funder pays the seller, and you take delivery.

Total: 5-15 business days for a clean deal. Anyone promising same-day funding on a 6-figure machine is selling you something else.

Loan vs. lease vs. $1 buyout

Equipment loan. You own the machine from day 1, the lender holds a lien, and you build equity with every payment.
Operating lease. Lower payments, you return or buy the machine at the end. Fits equipment you expect to upgrade before it wears out.
$1 buyout lease. Structured as a lease, functions like a loan: fixed payments, and you own it for $1 at the end. Common because some funders approve leases more easily than loans.

What moves your rate

Time in business: 2+ years opens the best pricing tiers.
Owner credit: stronger scores get stronger pricing, but the collateral softens the cutoff.
Revenue consistency: underwriters read bank statements for stable deposits, not just totals.
The equipment: age, hours, resale market, and whether it is new, used, or private-party.
Down payment: more skin in the game lowers both rate and approval risk.

Used equipment and private-party sales

A large share of the machines we see financed are used, including auction and private-party purchases. They are financeable, but plan for more documentation: photos, serial numbers, condition or hours reports, and sometimes a third-party appraisal. Build an extra week into your timeline and do not wire a deposit before the funder has seen the machine's paperwork.

Read the full program breakdown on our equipment financing page, or see how the placement process works.

Manufactor Finance is a US independent commercial finance broker. We are not a bank, lender, or lessor. Rate and timing ranges above are directional, not quotes, and every offer is set by the funding institution after underwriting.

Equipment financing FAQs

There is no single cutoff, because the machine itself is collateral. Stronger credit gets stronger pricing, but shops with bruised credit can still get approved, usually with a larger down payment or a higher rate. Time in business and revenue consistency matter as much as the score.

Plan on 5-15 business days from a complete application to funding. Simple deals with a clean file and a titled machine can move faster; used equipment, private-party sales, or large ticket sizes take longer because of appraisal and documentation.

Yes. Most equipment funders finance used machines, including private-party and auction purchases. Expect more documentation: photos, serial numbers, hours or condition reports, and sometimes a third-party appraisal.

A $1 buyout lease is structured like a lease but functions like a loan: you make fixed payments and own the equipment for $1 at the end. It exists for accounting and approval reasons, and the total cost is usually comparable to an equipment loan.

No. We are a US independent commercial finance broker, not a bank, lender, or lessor. We match your file with the funding institution that fits, and you sign directly with that institution.

Free PDF

Funding Requirements Checklist for US manufacturers

See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.

What documents you need for each program
Typical time-to-fund by program
Common disqualifiers worth knowing up front
How Manufactor Finance is compensated — $0 fees to you

3-page PDF · No application, origination, or closing fees to you · We're a independent broker, not a bank.

See the full requirements breakdown

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