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Equipment Loan Rates: APR by Credit Tier, Lender, and Equipment Type

By Waleed Akram · Last reviewed: October 22, 2026 · General information only — see our disclaimer

Equipment loan rates are quoted everywhere and combined nowhere: one page cuts them by credit score, another by lender, a third by industry. This page combines all three cuts — with the monthly payment each tier actually produces — so you can locate your likely rate in one reading. Rates below are typical ranges as of October 2026 from the lender/market sources cited; your quote depends on your file, and the ranges are wide because equipment lending prices the machine as well as the borrower.

General information, not a loan offer. Ranges synthesised from the published sources named below; verify with live quotes before deciding.

Cut 1 — By credit tier (Axiant’s published bands)

Credit profileTypical APRTypical terms
A-tier: 720+7–9%Up to 84 months, 0–10% down
Mid: 640–71910–14%36–72 months, 10–20% down
Below 64015–22%24–60 months, 20–30% down
On a $100,000 loan over 48 months (Bay Street’s worked column format), that is roughly $2,441/month at 8%, $2,633 at 12%, and $2,938 at 18% — the tier you land in is worth ~$500/month between best and worst on a mid-size machine.

Cut 2 — By lender type (Liminal’s published table, summarised)

LenderTypical APRNotes
Captive / manufacturer finance0–12%Promotional rates on new machines from the maker’s finance arm
Banks6–14%Slowest, cheapest, strictest
SBA 504 (heavy equipment/fixed assets)~5.8–6.9% on the CDC portionFixed, long terms — see 504 rates
SBA 7(a)Prime + spread (caps apply)See 7(a) rates
Online / alternative lenders7.99–35%Fast approvals, widest band
Marketplaces (e.g., Kapitus “starting at”)From ~7.5%Starting-at figures are best-tier teasers

Cut 3 — By equipment situation

The honest headline number

NerdWallet’s summary of the whole market: rates span roughly 4% to 45% APR depending on lender, credit, and equipment life. The 4% floor is promotional/captive or SBA-adjacent money for pristine borrowers; the 45% ceiling is last-resort online credit for challenged files. Most established small businesses land in the 7–15% corridor of Cut 1.

Lowering your rate (the levers that actually move it)

  1. Down payment — 20%+ down is the single most reliable tier-improver.
  2. Machine choice — newer, standard, resale-liquid equipment prices better than old or bespoke.
  3. Term discipline — shorter terms price lower; stretching to cut the payment raises both rate and total interest.
  4. Lender shopping in parallel — bank + captive + one online quote is the minimum viable comparison set; quotes cluster by channel (Cut 2), not by luck.

Frequently asked questions

What is the average equipment loan rate? There is no single average worth using — NerdWallet spans the market at 4%–45% APR. The usable averages are the tier bands: ~7–9% for 720+ credit, ~10–14% mid-tier, 15–22% below 640.

How does my credit score change the rate I get? Through the tier tables above (Axiant and Bay Street both organise the market this way): each tier step on a $100k/48-month loan is worth roughly $190–300/month. Time in business and revenue can offset a tier; nothing offsets them entirely.

Are rates different for new vs used equipment? Yes — Liminal’s published comparison: new 6–18% APR with 0–20% down; used 8–25% with 10–30% down. Age caps and appraisals come with the used premium (used calculator).

Which lender type offers the lowest equipment rates? Captive/manufacturer finance on promotions (0–12%), then SBA structures and banks (Liminal’s by-source table). The trade is speed and strictness: the cheapest channels are the slowest and most document-hungry.

Do SBA loans give lower equipment rates? For eligible purchases, yes — Liminal lists SBA 504 heavy-equipment money around 5.8–6.85% (CDC portion) against 6–14% bank conventional. The full structures are on the 504 rates and 7(a) rates pages.


General information, not a loan offer. Sources: NerdWallet equipment financing rates guidance; Axiant Partners credit-tier table; Liminal Lending lender/category tables; Bay Street Lending worked examples; Kapitus product page (questions/ranges as published, October 2026). Reviewed 2026-10-22.

How we work: every guide is researched against IRS, CFPB, CMS and SBA primary sources, written by Waleed Akram, and date-stamped at review. General information only — not tax, legal, or financial advice. See our editorial policy.