How to Qualify for Equipment Financing as a Small Business

📅 Posted by Hybrid Funder

Published July 22, 2025

💡 Introduction

Need new equipment for your business but don’t want to pay out of pocket? Equipment financing is one of the smartest ways to preserve cash flow while upgrading your tools, vehicles, or machines.

In this guide, we’ll show you exactly how to qualify for equipment financing, even if you’re a new business or have less-than-perfect credit.

🛠️ What Is Equipment Financing?

Equipment financing is a type of funding that allows you to purchase new or used equipment by spreading the cost over time. This can include:

• Trucks and trailers

• Commercial kitchen equipment

• Medical or dental machines

• Manufacturing and construction equipment

• POS systems, printers, computers, and more

The equipment itself usually serves as collateral, which makes it easier to qualify than a traditional loan.

✅ Key Benefits of Equipment Financing

• Finance up to 100% of the equipment cost

• Keep your working capital intact

• Fixed monthly payments

• Tax advantages (Section 179 deduction)

• Upgrade outdated gear without a large upfront cost

• Both new and used equipment eligible

📋 What You’ll Need to Qualify

At HybridFunder, we work with a national network of lenders — including South End Capital — to get you approved fast.

Here’s what you typically need:

1. Basic Business Information

• Business name, address, and EIN

• Time in business (startups OK with good credit)

• Industry type

2. Bank Statements

• Last 3 to 6 months of business bank statements

• Shows revenue and account activity

3. Credit Score

• We work with businesses starting at 500+ credit

• For internal programs, 700+ credit is ideal

4. Invoice or Equipment Quote

• For pre-approvals, you’ll need a quote or invoice from the vendor you’re purchasing from

🚚 Can Startups Get Equipment Financing?

Yes — startups can qualify if the following apply:

• The owner has 700+ credit score

• The equipment is essential to operations

• You can provide a strong personal financial statement or cash reserves

Our marketplace lenders offer custom options for early-stage companies — including flexible terms like deferred payments or seasonal structures.

💡 Pro Tips to Improve Approval Odds

• Maintain a healthy bank balance

• Avoid recent NSFs or overdrafts

• Choose equipment that’s mission critical (essential to your business)

• Be ready to provide a down payment if you’re a startup

🤝 Why Work With HybridFunder?

Unlike a single lender, HybridFunder is a syndication partner. We shop your deal across multiple funders — including banks and alt lenders — to match you with:

• ✅ The best terms

• ✅ Fastest approvals

• ✅ Flexible payment options

• ✅ Custom structures (seasonal, step, leaseback, etc.)

We’ve helped businesses across trucking, restaurants, salons, logistics, and construction get the equipment they need — without the wait.

📥 Ready to Apply?

It takes just a few minutes.
📤 Apply Now — Upload your bank statements and a quote or invoice, and we’ll do the rest.

📩 Questions?

Email deals@hybridfunder.com or call/text us at (347) 201-2367
We’re based in Brooklyn, serving all 50 states.

🔒 Disclaimer

HybridFunder is a syndication partner, not a direct lender. Equipment financing offers are made through third-party lending partners and are subject to underwriting approval. All terms, conditions, and offers vary based on credit, equipment type, and business history. HybridFunder complies with all applicable local, state, and federal financing laws.