When your business relies on equipment, you need access to fast and flexible funding. Borrowing funds for manufacturing machinery, medical diagnostic machines, construction trucks, or service vehicles from the wrong lender can strain your cash flow and threaten your operations.
But term loans for business equipment can help you secure the assets you need and financing that works with your operations. A term loan provides a lump sum that you repay in fixed amounts over a few years, usually matching your equipment’s lifespan. These loans offer stability and planning power when you’re investing in long-term assets.
And when you work with a top business term loan lender, you gain a partner who truly understands your industry’s needs. Here’s what to look for in a term loan provider and five lenders that stand out for equipment-heavy businesses.
What to Look for in a Term Loan Lender
Many lenders offer business term loans, but not all offer equipment financing options or understand asset-dependent industries. Look for lenders with these key features before applying:
Industry Expertise
Lenders understand equipment financing when they regularly serve construction, logistics, manufacturing, medical, agriculture, landscaping, or technology companies. They’re better equipped to evaluate your business and cash flow and set realistic repayment structures that reflect your operational needs. Ideally, choose a provider with plenty of experience in your specific industry.
Loan Amount
You want a lender that offers loan sizes and term lengths suited to your equipment purchase. If your equipment costs between $1,000 and $500,000, look to online small business lenders. With their streamlined applications and accessible requirements, you can secure the tools you need quickly. But if you need $1 million or more, consider borrowing from a bank or specific equipment financing provider. These more established lenders can help you purchase the big-ticket items you need.
Term Lengths
Check whether the loan term aligns with the expected lifespan of your equipment. For example, business loans for medical practice equipment should last five to seven years, while a two to four-year term might better suit technology purchases. Think about how long before your new equipment generates revenue or needs an upgrade to pick the right term length.
Interest Structure
Some lenders offer term loans with fixed rates, while others tie interest to variable benchmarks. Fixed rates give you predictable payments through the life of the loan. Variable rates may save you money if rates drop or stay low, but you may also end up paying a higher monthly amount. Decide how much risk you are willing to manage and your business can absorb, before choosing your loan.
Prepayment Terms
Paying off your loan early can be a great option when business booms or you need to lighten your debt load. Some lenders charge prepayment penalties while others incentivize early payoff. If you hope to pay off your loan early, prioritize a lender that gives you that financial flexibility without extra fees.
Top Business Term Loan Providers for Equipment
Each of these lenders focuses on different business needs and offers unique strengths. The best option depends on your needs and risk profile. Use this breakdown of five of the top business term loan lenders that serve equipment-reliant industries to find the right financing for you.
1. Ameris Bank Equipment Finance
Ameris Bank Equipment Finance provides both term loans and direct equipment financing. They fund small business loans between $20K and $250K for up to 24 months,1 which could work well for purchasing small equipment that needs to be frequently upgraded. Their equipment financing products offer longer terms and higher loan amounts, with up to five-year terms and $500K,2 to accommodate larger investments.
For a bank-owned lender, Ameris Bank Equipment Financing actually has reasonable minimum qualifications and a fast approval process.2 If you want to secure competitive rates and have the security of bank-backed financing, consider this lender.
2. OnDeck
OnDeck specializes in small business funding, providing short-term loans with fast approvals and predictable terms. They use fixed interest rates and set daily or weekly payments.3 Owners can secure term loans for $5K and $400K and terms between three and 24 months through OnDeck.
While this term length is too short for significant equipment purchases, OnDeck is ideal for growing businesses that need quick capital to upgrade software or repair important tools. Fast-moving industries may find their options for same-day funding especially attractive.3
3. Lendio
While not a direct lender, Lendio allows you to compare multiple financing offers through a single application in the loan marketplace.4 Their network of lenders can fund business term loans up to $4 million5 and equipment financing up to $5 million,6 both with terms up to 10 years.
Because these loans come from different providers, Lendio can’t guarantee how much you’ll be offered, what interest rate you’ll secure, when you’ll make payments, or how quickly you’ll be funded. You’ll have to check each individual offer for the details. But if you want a big-picture view of what’s available to your business, start with Lendio.
4. First Citizens Bank
First Citizens Bank offers larger term loans and equipment financing tailored to businesses with substantial capital needs. They start funding business term loans at $250K and don’t set a maximum amount.7 These loans have up to 15- and 20-year terms, which support long-term assets like medical diagnostic machines and manufacturing CNC machines.
Their equipment financing programs are similarly targeted toward large enterprises and assets, with no maximum loan amount and terms ranging from one to six years.8 First Citizens Bank has experience funding equipment-heavy businesses in every industry, making it a good option for complicated or significant investments.
5. Cardiff
Cardiff’s EFAs also include options like payments that ramp up as equipment generates income, seasonal repayments, and one-year deferrals.10 They assign a loan advisor to each borrower to customize financing to the industry and business size and support owners through the life of the loan.9 Businesses that need flexible repayment options and personalized support can turn to Cardiff.
Capital Without Compromise
Business term loans are a powerful tool for equipment-heavy industries. They can preserve your cash flow and protect your business operations while giving you the funds to grow when you work with the right lender.
So take the time to compare top business term loan lenders to your business. Secure capital that doesn’t compromise your needs. A provider who understands your industry and matches your business model is as much an investment in your future as your new equipment.
1https://equipmentfinance.amerisbank.com/small-business-loans/
2https://equipmentfinance.amerisbank.com/equipment-financing/
3https://www.ondeck.com/business-term-loan
4https://www.lendio.com/
5https://www.lendio.com/business-loans/term-loans
6https://www.lendio.com/business-loans/equipment-financing
7https://www.firstcitizens.com/small-business/credit-financing/business-financing/business-loans
8https://www.firstcitizens.com/small-business/credit-financing/equipment-financing-leasing
9https://cardiff.co/
10https://cardiff.co/business-loans/products/equipment-leasing/