What it takes to get approved for equipment financing
Equipment financing isn’t one-size-fits-all. These guidelines show what lenders typically look for at each deal size. Use them as a guide, not a hard credit box: every lender has its own credit window, and most equipment lenders do a hard credit pull. Shopping your file to several brokers stacks up inquiries and can hurt your approval.
Liberty Capital has more than 20 years in equipment leasing. We know which lender fits which deal, and we can split a larger request into smaller exposures to keep it application-only (low-doc) up to about $250,000.
Typical credit guidelines for equipment financing
- 5-year clear credit history, no major derogatories, 7+ satisfactory trade lines
- Personal guaranty (FICO 600+)
- Bank statements averaging mid 4 figures — no NSFs
- Comparable credit, trade or personal ($35K+ through application and UCC)
- Multiple locations: disclosure and landlord waiver
This is the application-only limit for startups.
- Personal guaranty (FICO 650+)
- Bank reference in the low 5 figures (statements or bank rating)
- Business rated with Dun & Bradstreet, or a comparable rating
- Comparable credit, trade or personal (we pull business credit)
- Personal guaranty (FICO 650+)
- 2 years business tax returns
- 2 years personal tax returns (each owner)
- Personal financial statement
- Interim financials (P&L and balance sheet)
- Bank reference in the mid-to-high 5 figures
- 2 years business and personal tax returns (owners of 20%+)
- Personal financial statements
- Current interim P&L and balance sheet
- Personal guaranty (FICO 650+)
- Bank statements in the mid-to-high 5 figures
- Debt schedule (may be required)
- Personal guaranty (FICO 725+)
- Bank statements in the mid-to-high 5 figures
Stronger credit and time in business let us stretch application-only approvals.
- PayNet history available
- Publicly traded, or 75+ owners with no single owner above 20%
- Strong business credit
- Bank statements in the mid-to-high 5 figures
“Mid 4 figures” and “low/mid-to-high 5 figures” refer to the typical average daily balance lenders want to see in the business bank account.
Why equipment credit is tighter than working capital
Underwriting for equipment leases and loans has a narrower credit window than most working capital products. That’s why some lenders will offer a working capital loan before they’ll approve a lease. We know those windows lender by lender, so we match your file to the lender most likely to approve it, the first time.
Equipment dealers & vendors
Download our Vendor Package: program overview, these credit guidelines, and our fillable customer credit application.
How to become an approved vendor
Sell equipment? Offer your customers financing at the point of sale. Close more deals, get paid directly when the deal funds, and earn a referral fee on funded deals — with no cost to join.
Sign up as a vendorDownload the Vendor Packageor call (888) 511-6223
Buying equipment for your own business? Apply online — we start with a soft inquiry.
Comparing retail loans, equipment leasing and financing
| Feature | Buy now, pay later (retail) | Equipment leasing | Equipment financing |
|---|---|---|---|
| Buyout | Retail finance | $1 buyout, 10% FMV, FMV true lease | Equipment finance agreement (EFA) |
| Initial costs | Low to moderate | Low to moderate | Low to moderate |
| Monthly payments | Fixed | Fixed | Fixed |
| Tax benefits | Yes | Yes | Yes |
| Compounding interest | Yes | No | No |
| Maintenance responsibility | Yes | Sometimes included | Varies |
| Max term | 5 years | 5 years | 5 years |
| Min. credit score | 600+ | 600+ | 650+ |
Choosing between a retail loan, a lease or equipment financing depends on your cash flow, your industry and your long-term plans. What you can buy and what you can afford can be two different things — we’ll help you pick the structure that fits.
More equipment financing credit guidelines you need to know
Deposits vs. down payments
| Payment | Refundable? |
|---|---|
| Security deposit | Refundable |
| Down payment | Not refundable |
| First & last payments (advance payments) | Not refundable — they’re advance payments, not a down payment |
Qualification is never absolute. Lenders also weigh PayNet and PAYDEX scores, background, industry, business history, the type and age of the equipment (resale value matters), and whether you’re buying from a dealer or a private seller. Many buyers prefer to go straight to a direct lender, but the right approval often depends on matching the deal to the right lender — that’s what we do.
Rates and terms disclosure: Any rates, payments or terms shown are examples only. Sample rates apply to established businesses with 3–5+ years in business and strong credit (680+ FICO) and are subject to credit approval. Rates for startups vary and are subject to final approval. This is not an offer or commitment to lend. Liberty Capital Group, Inc. · NMLS #2009539 · CA DFPI #60-DBO49692.
Watch: how equipment financing approval works
Sign up as a vendor, or call (888) 511-6223 to talk through a deal.