When essential equipment is holding your business back, paying the full cost upfront can leave too little cash for payroll, inventory, emergencies, or growth. Financing can help you acquire the tools you need while spreading repayment over time, so the equipment can support revenue instead of straining your operating account.

Talk with a Lyft Capital financing specialist about your equipment options.

The right choice depends on what you are buying, how it will strengthen your business, and whether ownership or flexibility matters most. Start by understanding what this type of financing actually covers and how it differs from leasing.

What Is Equipment Financing?

Equipment financing is a way for a business to purchase the tools, machinery, vehicles, or technology it needs without paying the entire cost upfront. The financing provider pays for the equipment, and the business repays that amount in fixed installments over an agreed term. Because the business is purchasing the equipment rather than renting it, it owns the asset outright once the financing obligation is satisfied. The U.S. Small Business Administration explains this distinction as purchasing equipment while spreading the purchase price over several years.

For example, suppose a landscaping company needs a $30,000 commercial mower and trailer. Paying cash could leave less available for payroll, fuel, insurance, or a slow season. With small business equipment financing, the company can put the equipment to work while repaying the purchase through predictable installments. The exact payment and approval terms depend on the business, equipment, and provider, so ask a financing specialist for current details rather than assuming a particular rate or fee.

Preserve cash for the rest of the business

The main practical benefit is flexibility. Equipment financing can preserve cash flow for operating needs, emergencies, or investments that help the company grow. A restaurant that finances a $20,000 refrigeration system, for instance, may keep its cash reserve available for inventory and staffing instead of using nearly all of it on one purchase. The equipment itself may also support additional revenue or lower operating costs, but the business should evaluate those expectations realistically before taking on a payment.

Consider the potential tax treatment

Financing may also provide tax benefits, including the ability to deduct interest and depreciation expenses. Tax treatment depends on the business structure, the equipment, and current tax rules. A qualified tax professional can explain which deductions may apply and how to document them. Do not treat a possible deduction as a reason to buy equipment the business does not genuinely need.

Match the term to the equipment

Equipment financing terms can extend up to five years. A longer term may make a major purchase easier to fit into monthly cash flow, while a shorter term may pay down the balance sooner. Consider how long the equipment should remain productive, whether it will generate enough value to support the payments, and how quickly technology or business needs may change. The right structure should help the business use an important asset without creating an unnecessary strain on its budget.

Types of Equipment You Can Finance for Your Business

Equipment financing can support far more than a single machine or vehicle. If an asset helps your business produce, serve customers, deliver products, or operate efficiently, it may be worth discussing with a financing specialist. Common examples include:

• Vehicles and trucks: Work vans, box trucks, semi-trucks, trailers, and other commercial vehicles can help contractors, delivery companies, landscapers, and distributors expand capacity.
• Industrial machinery: Manufacturers may finance CNC machines, presses, welders, compressors, forklifts, and other production equipment.
• Restaurant and commercial kitchen equipment: Ovens, refrigeration systems, dishwashers, prep stations, coffee equipment, and point-of-sale hardware can support a new location or a kitchen upgrade.
• Medical and dental tools: Dental chairs, imaging equipment, sterilization systems, diagnostic devices, and treatment equipment may be financed by practices that need to improve patient care without using all their operating cash.
• Construction equipment: Excavators, skid steers, loaders, lifts, backhoes, and specialized tools can help construction and trade businesses take on larger projects.
• Farm and agricultural machinery: Tractors, harvesters, irrigation equipment, planters, and other machinery may be practical investments for farms and agricultural operations.
• Computers and office technology: Servers, computers, copiers, communications systems, and other technology can be useful when a growing team needs an upgrade all at once.
• Software: Business management, accounting, design, logistics, and industry-specific software may qualify when it is part of a broader equipment or technology investment.

The financed amount may also account for certain soft costs connected to putting the asset into service. For example, Crest Capital notes that equipment financing can include delivery and installation costs, rather than covering only the sticker price of the equipment. Setup, configuration, and related implementation expenses may be worth asking about as well.

Many equipment financing arrangements cover the full equipment cost, so a down payment may not be required. Lyft Capital states that its equipment financing covers the entire cost with no down payment requirement, subject to approval and review. That can make a $40,000 commercial oven, $75,000 work truck, or $25,000 medical device easier to acquire while preserving cash for payroll, inventory, repairs, and other operating needs. Terms can extend up to five years, depending on the equipment and financing structure. A specialist can help you determine which assets and related costs fit your situation.

How Equipment Financing Works vs an Equipment Loan

The labels can overlap, so the most useful distinction is how the financing is structured. With equipment financing, the equipment being purchased generally serves as the security for the transaction. You spread the purchase cost over an agreed term, and once the balance is repaid, you own the equipment outright. The U.S. Small Business Administration describes this as purchasing equipment while spreading the purchase price over several years. Read the SBA’s guidance on equipment financing and leasing.

A general equipment loan may also be designed around a specific purchase, but its collateral requirements, approval process, repayment structure, and funding limits depend on the lender. Ask exactly what secures the loan, whether a personal guarantee is required, how ownership is documented, and what happens if the equipment is sold or replaced.

A simple example

Suppose a landscaping company needs a $60,000 commercial mower. Under an approved equipment financing structure that covers the full cost, the business could finance the $60,000 purchase without making a down payment. The mower supports the financing, and the owner makes scheduled payments over the selected term. After repayment, the company owns the mower and can continue using it to serve customers, expand capacity, or replace older equipment.

The right choice depends on more than the label. Compare the total repayment amount, security terms, ownership language, payment schedule, and any required guarantees. Lyft Capital can explain available options and current terms through a financing specialist, without publishing one-size-fits-all pricing.

Who Qualifies for Small Business Equipment Financing?

Eligibility depends on more than a credit score. Lenders generally want evidence that your business is established, can manage repayment, and has a practical reason for purchasing the equipment. They may also consider the equipment itself, your revenue history, and the way the purchase fits into your operating plan.

Lyft Capital’s baseline requirements

For equipment financing through Lyft Capital, the published baseline is at least two years in business and a 600 credit score. These requirements can give established owners a clear starting point when preparing an application, but they do not guarantee approval. Final decisions are subject to review of the complete application, business circumstances, and requested equipment.

Credit requirements vary considerably by provider. Some traditional bank products set a higher bar. For example, NerdWallet lists a 700 minimum credit score for Bank of America’s equipment loan, while other equipment-financing products in its comparison use lower minimums. That difference is one reason an owner who has been declined by a bank may still have another financing path worth exploring. Lyft Capital is designed to help small businesses underserved by traditional banks. With dedicated financing specialists available to discuss the situation rather than relying only on an automated yes-or-no experience.

Be ready to explain the equipment’s business case

A lender may ask how the purchase will improve the business. The U.S. Small Business Administration notes that an equipment financing provider may want a projection of increased revenue or cost savings resulting from the equipment. Keep the explanation concrete. A delivery company might show how a vehicle adds one route each day. A contractor could explain how a new machine reduces rented-equipment costs or allows the team to accept more jobs. A restaurant might connect upgraded equipment with faster service or greater production capacity.

You do not need to promise a specific outcome. Instead, outline the current limitation, the equipment’s expected role, and the assumptions behind your estimate. Bring a vendor invoice as well, since it is required to complete Lyft Capital’s equipment financing application.

Review your credit information before applying

Before contacting a provider, review your business credit report and correct outdated or inaccurate information. The SBA recommends this step because errors or incomplete records can complicate an otherwise reasonable application. Also gather basic business details, recent financial information, and the equipment quote so a financing specialist can evaluate the request efficiently.

If you are comparing small business funding options, start with the requirements you can document and the repayment plan your cash flow can support. You can also review Lyft Capital’s equipment financing program and discuss your circumstances with a specialist before deciding whether to apply.

Equipment Financing vs Leasing: Which Is Better?

The better choice depends less on the equipment itself than on what you want to happen at the end of the agreement. With equipment financing, you purchase the asset and own it outright after repaying the financing. With leasing, the lender or lessor owns the equipment while you pay for the right to use it. The U.S. Small Business Administration distinguishes the two approaches in these terms: financing builds toward ownership, while leasing provides access without immediate ownership. Learn more about equipment financing and leasing from the SBA.

Choose financing when ownership is the goal

Equipment financing is usually the stronger fit when you expect to keep the asset for many years. Once the financing is repaid, the business owns the equipment and can continue using it without a lease ending or renewal decision. That can make sense for durable machinery, vehicles, restaurant equipment, or other assets that support operations over a long useful life.

Ownership may also provide more control over the equipment’s future. You can keep it, sell it, or continue using it as your business grows. Financing can help preserve cash flow for other operational needs rather than requiring the full purchase price upfront. Lyft Capital’s equipment financing may cover the full equipment cost with no down payment requirement, subject to approval and review. Tax treatment varies by business and situation, so ask your tax professional how depreciation and interest deductions may apply.

Consider a capital lease for planned ownership

A capital lease can bridge the gap between financing and leasing when you plan to take ownership at the end of the term. According to the SBA, this structure is generally appropriate for businesses that intend to keep the equipment, including owners investing in long-term machinery. Review the agreement carefully so you understand the purchase option, end-of-term responsibilities, and total cost before signing.

Use an operating lease for equipment that changes quickly

An operating lease may be more practical when the equipment becomes outdated quickly or you expect to replace it frequently. High-tech equipment, computers, and copiers are common examples. Leasing can help you access current technology without committing to own an asset that may have limited value when the agreement ends. It may also make budgeting more predictable, but you will need to understand renewal terms, upgrade options, maintenance obligations, and what happens when you return the equipment.

A simple decision framework

• How long will you use it? Choose financing or a capital lease when you expect to keep the equipment for most of its useful life. Consider an operating lease when replacement is part of your normal technology cycle.
• Do you want an asset at the end? Financing and capital leases support ownership. An operating lease is primarily about access and use.
• What can your cash flow support? Compare the upfront payment, recurring obligations, maintenance costs, and flexibility each option creates. Do not evaluate the payment in isolation.

Before deciding, compare the complete terms and discuss your plans with a financing specialist. The right structure should support the equipment’s useful life, your ownership goals, and the cash flow your business needs to keep operating.

How to Apply for Small Business Equipment Financing

A thoughtful application can make it easier for a financing provider to understand what you need, what you are buying, and how the equipment supports your business. Prepare the key details first, then compare your options before choosing a provider.

1. Prepare the equipment quote and vendor invoice

   Ask the vendor for a written quote that identifies the equipment, model or specifications, purchase price, and any included costs. Keep the vendor invoice available in a clear digital format. Lyft Capital requires a vendor invoice upload to complete an equipment financing application, so requesting this document early can prevent delays. If installation, delivery, or other costs are included in the purchase, ask whether they appear on the quote or need separate documentation.

2. Review your business credit report

   Before contacting a provider, review your business credit report for outdated information, duplicate accounts, or errors. The U.S. Small Business Administration recommends correcting inaccurate details before applying for equipment financing. A clean, current report gives the provider a more reliable view of your business and lets you address questions before they become part of the review. Also gather basic business information, including time in business, monthly revenue, and the equipment’s expected contribution to revenue or cost savings.

3. Complete a focused application

   Lyft Capital’s equipment financing application takes about five minutes to complete. Start with accurate information rather than estimating figures to make the process faster. You may be asked how the equipment will be used and how it supports the business. A provider may also want a projection of increased revenue or cost savings associated with the purchase. Pre-approval is subject to review and does not guarantee final approval or funding terms.

4. Upload the vendor invoice and supporting details

   Submit the vendor invoice with the rest of the requested information. Check that the business name, equipment description, and purchase amount match across your documents. If the provider asks for clarification, respond directly and explain the business purpose of the purchase. Equipment itself may support the financing, but your overall situation matters too. If you are unsure how collateral for a business loan may affect your options, ask a financing specialist to explain the structure.

5. Compare providers before committing

   Do not choose the first offer automatically. The SBA recommends comparing rates, fees, lease terms, and available options across providers, including your bank and a manufacturer’s financing company. Review the total repayment obligation, payment schedule, ownership terms, early payoff language, and any conditions tied to the equipment. Lyft Capital can help you understand available options, but the funding issuer and final terms will be identified in the funding agreement.

6. Avoid sending many applications at once

   Research providers first and submit a focused application when you are ready. The SBA notes that multiple financing inquiries at the same time can raise questions for potential lessors about whether another provider declined the application. A smaller, better-prepared application set helps you maintain control of the process and explain your financing request clearly.

Get pre-approved with Lyft Capital and discuss your equipment financing options with a specialist.

Frequently Asked Questions

How much equipment can a small business finance?

The amount depends on the equipment, your business finances, and the provider’s review. Lyft Capital’s equipment financing can cover the full equipment cost, including the vendor invoice, with no down payment requirement subject to approval and review. See the equipment financing options for details.

What credit score do you need for small business equipment financing?

Requirements vary by provider. Lyft Capital lists at least two years in business and a 600 credit score for its equipment financing program, but approval also depends on your overall application and financial profile. Review your business credit report and correct outdated information before applying, as recommended by the U.S. Small Business Administration.

Can you finance used equipment?

Many equipment financing providers consider used equipment, but eligibility can depend on the equipment’s condition, age, value, and business purpose. Have a clear vendor invoice and be prepared to explain how the purchase will support revenue growth, improve efficiency, or reduce costs.

Is equipment financing better than leasing?

Neither option is automatically better. Financing generally lets you own the equipment after repayment, while leasing means the lender owns it during the lease term. Choose financing when long-term ownership matters, and consider leasing when you expect to replace technology or equipment frequently.

How long does the equipment financing application take?

Lyft Capital states that its equipment financing application takes about five minutes to complete, and a vendor invoice is required. Review is still necessary, so application speed does not guarantee approval or a specific funding timeline.

Ready to Check Your Equipment Financing Options?

Choosing the right equipment financing can help you pursue needed tools while keeping your business plans clear and manageable. Lyft Capital can help you review available options based on your business and equipment needs. Check your equipment financing options and get pre-approved to start the conversation. Pre-approval and financing terms are subject to review and approval.