What Makes an Equipment Finance Deal Fundable | Broker-in-a-Box
The credit, collateral, documentation, and deal structure factors that determine whether an equipment finance deal gets approved and funded.
Frequently asked questions
What credit score does a borrower need to get equipment financing?
There is no single cutoff. Borrowers with a 700+ personal credit score qualify for the best rates and widest lender selection. Scores between 650 and 700 are still fundable but with fewer options and higher rates. Below 650, lenders exist but they specialize in challenged credit and the cost of capital reflects that. The credit score is one factor -- time in business, revenue, and collateral all play a role.
Can a startup get funded for equipment financing?
It is possible but significantly harder. Most A-credit lenders require two or more years in business. Startups typically need strong personal credit, a substantial down payment, and equipment with solid resale value. Some lenders specialize in startup financing, but the terms are tougher and the approval process is more rigorous.
Does the type of equipment affect whether a deal gets funded?
Absolutely. Lenders prefer equipment with strong resale value from recognized manufacturers. Branded, essential-use equipment like construction machinery, trucks, or medical devices is easier to finance than custom fabrications or soft costs. If the lender has to repossess, they want to know the equipment can be resold.
What is the most common reason equipment finance deals get declined?
Incomplete documentation is the number one reason deals stall or get declined. Missing bank statements, outdated tax returns, or vague equipment quotes force the lender to chase information. Many lenders will simply move on to the next deal in their queue rather than follow up repeatedly for missing documents.