Rates as of August 2026
Need equipment financing?
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0% Down Payment for 620+ FICO
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Start-Up Long-Haul Trucking (no fleet size minimum)
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No Minimum Time in Business
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**Soft Credit Pull **Underwriting (doesn’t affect your score)
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Application Only Funding under $350K
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Most Industries & Equipment Considered!
What equipment financing is
Equipment financing is a loan or lease used to acquire business assets — machinery, trucks, trailers, tools, and technology — where the equipment itself secures the debt. Because the asset is the collateral, approvals lean on the equipment’s value and your business cash flow rather than a large down payment, so you keep working capital free for payroll, materials, and the next job.
For real estate investors and contractors, that means buying the excavator, dump truck, or HVAC fleet you need to take on bigger projects without tying up the cash you’d otherwise deploy into deals.
What we finance
- Construction and heavy equipment — excavators, skid steers, bulldozers, loaders, compactors
- Commercial trucks and trailers — long-haul tractors, box trucks, dump trucks, service vehicles
- Trade and shop equipment — HVAC, electrical, plumbing, welding, and fabrication tools
- Technology and software — point-of-sale, fleet telematics, and back-office systems
- New and qualifying used equipment, including vendor and private-party purchases
How the terms work
Most deals run 6%–14% depending on credit, equipment type, and term length, with repayment schedules of 2–7 years matched to the asset’s useful life. Application-only funding (no full financial package) is available under $350K; larger requests use a streamlined documentation package. Many borrowers also pair financing with Section 179 and bonus-depreciation planning to offset a meaningful share of year-one cost — confirm specifics with your CPA.
Financing vs. paying cash
Paying cash for equipment depletes the reserves you need to weather slow seasons and pounce on opportunities. Financing preserves liquidity, builds business credit, and lets the equipment earn while you pay for it. Structured well — seasonal or step-up payments aligned to your revenue cycle — the monthly cost is covered by the additional work the equipment makes possible.
When your projects also need property capital, pair equipment financing with fix and flip or DSCR rental at 5.75%–10.5% programs to fund the whole operation.
If the cash you need is not sitting on a serial number — payroll, mixed invoices, a merchant cash advance payoff, or a partner buyout — use unsecured term loans ($50,000–$500,000, 3/5/7 years, approx. 6%–18% quoted per file, no equipment UCC). Compare the two stacks on unsecured vs equipment financing. Do not mix that illustration band with this equipment range of 6%–14%.
Worked example: contractor excavator purchase
A fix-and-flip operator in Indianapolis needs a mini excavator to self-perform site work:
| Line item | Amount |
|---|---|
| Equipment cost (used CAT 305) | $62,000 |
| Down payment (0% on 620+ FICO program) | $0 |
| Financed amount | $62,000 at 9.5% |
| Term | 60 months |
| Monthly payment | ~$1,300 |
| Projects enabled per year | 4 additional flips |
| Average profit per flip | $45,000 |
| Equipment cost covered by | Under 1 flip profit |
The excavator preserves $62,000 in cash that deploys into the next hard money acquisition at 8.99%–13.5%.
Industries and equipment we consider
Beyond construction, Jaken Finance Group equipment financing covers:
- Long-haul and regional trucking — start-up friendly, no fleet minimum
- Landscaping and tree service — chipper, stump grinder, fleet trucks
- HVAC and mechanical contractors — van stock, lift equipment, diagnostic tools
- Manufacturing and fabrication — CNC, press brake, welding stations
- Agriculture and land management — tractors, implements (select files)
Application-only funding under $350K uses a soft credit pull that does not affect your FICO score. Larger requests require a streamlined financial package.
Equipment financing vs. lease
| Finance (loan) | Operating lease | |
|---|---|---|
| Ownership | Yours after final payment | Return or buyout at term end |
| Section 179 / depreciation | Borrower claims (confirm with CPA) | Lessor claims |
| Best for | Long-term core equipment | Technology with short useful life |
| End of term | Paid off — no payment | New lease or buyout negotiation |
Consult your CPA on Section 179 deductions and bonus depreciation before choosing structure.
Pair with real estate capital
Investors and contractors running parallel businesses often need both equipment and property financing:
- Fix-and-flip — fix-and-flip loan requirements for the deal, equipment financing for the fleet
- BRRRR rental portfolio — DSCR at 5.75%–10.5% on stabilized doors, equipment loan on the truck and tools
- Ground-up construction — ground-up construction loans plus excavator/fleet financing
Pre-qualify equipment · real estate loan programs · (833) 264-7776
Equipment vs. real estate capital — do not mix products
| Need | Wrong tool | Right tool |
|---|---|---|
| Excavator for land dev | DSCR rental | Equipment 6%–14% |
| Flip SFR rehab | Equipment loan | Hard money 8.99%–13.5% |
| Stabilized rental | Equipment | DSCR 5.75%–10.5% |
| MHP pad infrastructure | Personal LOC | Bridge / commercial CRE |
Jaken Finance Group equipment programs are distinct from real estate — see loan parameters · commercial financing · vacant land loans.
Real estate investor equipment traps
Do not use equipment LOC for down payment on investment property — lenders trace sourced funds.
| Use | Product |
|---|---|
| Skid steer on land dev | Equipment 6%–14% |
| SFR flip rehab | Hard money 8.99%–13.5% |
| Rental hold | DSCR 5.75%–10.5% |
Loan process · vacant land · commercial financing.
What the IRS instructions allow you to expense
Equipment debt and equipment tax deductions are separate decisions. Confirm both with your CPA. The rules below are the IRS instructions, not a tax opinion on your return.
IRS Instructions for Form 4562 state that for tax years beginning in 2025, the maximum section 179 expense deduction is $2,500,000. The limit is reduced by the amount by which the cost of section 179 property placed in service during the year exceeds $4,000,000. The same instructions cap the section 179 deduction for sport utility vehicles placed in service in tax years beginning in 2025 at $31,300.
Those dollar caps are written for tax years beginning in 2025. A return for a later year may use a different inflation-adjusted figure. Do not paste $2,500,000 onto a 2026 return until your CPA checks the instructions for that year.
The same instructions describe Public Law 119-21, the One Big Beautiful Bill Act, as reinstating a 100% special depreciation allowance for certain qualified property acquired and placed in service after January 19, 2025. Property that does not meet the “qualified property” tests does not get that allowance. Election, business-use percentage, and listed-property limits can all reduce the deduction.
Illustration, using the $62,000 used excavator in the example above. That cost is far under the $2,500,000 section 179 ceiling for tax years beginning in 2025. If the machine qualifies and the business elects, the cost can be expensed in the year it is placed in service instead of recovered slowly. The loan payment does not change because you elected the deduction. You still owe the note. The deduction changes the tax result, not the monthly draft.
A heavy SUV used as a job truck can hit the $31,300 section 179 vehicle cap even when the business is nowhere near $2,500,000 of purchases. Price the truck and the deduction as two lines.
A direct equipment loan is not an SBA guaranty
Jaken Finance Group equipment financing is a direct loan. Rates run 6%–14%. Terms run 2–7 years. Financing covers 80%–100% of equipment value. Minimum credit on the program is 600. The zero-down feature described above is for borrowers at 620 and higher. Complete files close in 5–10 business days. That product is not an SBA-guaranteed loan, and it is not priced like real estate hard money at 8.99%–13.5%.
The SBA 7(a) program can be used to purchase and install machinery and equipment. The maximum 7(a) loan amount is $5 million. The business must be a for-profit operating company in the United States, small under SBA size standards, and unable to obtain the desired credit on reasonable terms from non-federal, non-state, and non-local government sources.
SBA lender guidance adds the term rules. Most 7(a) loans are 10 years or less, unless the loan finances real estate or equipment whose useful life is longer than 10 years. Equipment and leasehold loans may add up to 12 months when installation needs that time. The maximum term, including extensions, is 25 years. SBA Express and Export Express cap the loan at $500,000, below the general $5 million maximum. For most 7(a) loans, SBA guarantees up to 85% of loans of $150,000 or less, and up to 75% of loans above $150,000. The rate is negotiated with the lender and capped against a base rate SBA publishes.
Use 7(a) when you need a longer amortization than 7 years and you cannot get the credit elsewhere on reasonable terms. Use the Jaken Finance Group equipment loan when the machine should be paid off inside 2–7 years and you want a 5–10 business day close. A 504 project is a third tool on that same SBA page. A private lender can hold a senior lien for up to 50% of project cost. A certified development company can hold up to 40%, backed by an SBA-guaranteed debenture. The borrower puts in at least 10%. That structure fits a building plus heavy machinery. It is a poor fit for one mini excavator.
Match the note to how the machine earns
A 60-month note on a machine you will own for a decade leaves the asset free and clear while it still works. A 7-year note on a truck you will replace in year four leaves you paying for equipment you no longer run. Jaken Finance Group terms stop at 7 years, so a long-lived asset still amortizes inside this decade.
Illustration. The $62,000 excavator financed at 9.5% for 60 months is the payment already shown above, about $1,300 a month. Four extra flips were the business case on that example, at an average $45,000 profit. One of those flips covers the machine several times over. The loan still has to be paid in months when you have no project. Keep a reserve equal to several payments in the operating account. Do not fund that reserve by pulling equipment-loan proceeds into a property down payment. Lenders on the real estate side trace large deposits.
Application-only funding under $350,000 is the lighter file. Larger requests need the streamlined financial package. Either way, the lender takes a security interest in the equipment. Title vehicles need the lien recorded the way the state titles trucks. Serial-number equipment is secured and perfected under state secured-transactions law, which your closing package will spell out. Do not sell or trade the machine until the lien is released.
Keep property debt in its own loan
| Need | Product at Jaken Finance Group | Clock |
|---|---|---|
| Mini excavator, truck, or shop tools | Equipment loan, 6%–14%, 2–7 years | 5–10 business days |
| House you will renovate and sell | Fix-and-flip, 8.99%–13.5% | 7–10 business days |
| Stabilized rental in an LLC | DSCR, 5.75%–10.5%, 30-year fixed or ARM | About 14 business days |
| Payroll or a partner buyout with no serial number | Unsecured term loan, about 6%–18%, $50,000–$500,000 | 3–10 business days |
The unsecured band is not the equipment band. The equipment band is not the hard-money band. If the project is a building rather than a machine, start with commercial real estate financing or fix-and-flip loan requirements.
Bring the vendor quote, the year and hours on used equipment, and the entity that will own the asset. Start with the loan finder or call (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon satisfaction of borrower conditions. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196