Average Interest Rates for Equipment Loans: What to Know About Equipment Financing and How Equipment Affects Loans

If you’re planning to upgrade your business tools, equipment, or machinery, understanding the average interest rates for equipment loans can make a real difference in your financing decisions. Whether you run a restaurant, construction firm, manufacturing business, or medical practice, the type of equipment you’re financing affects your loan options.

This guide breaks down what impacts interest rates, how equipment loans work, and how to choose financing that fits your business goals. Sunwise Capital offers a fast, supportive path to the funding you need, even if your credit isn’t perfect or you don’t have collateral.

Understanding Average Interest Rates for Equipment Loans in Today’s Market

Interest rates for equipment loans typically range between 6 percent and 15 percent, but several factors influence where your rate falls. These include your credit profile, business revenue, time in business, and the type and age of the equipment. Since equipment loans are usually secured by the equipment itself, they may come with more favorable rates than unsecured business loans.

Most equipment loans offer fixed interest rates, giving businesses consistent monthly payments that are easier to budget. Equipment value and your industry type also play a role. For example, newer equipment with good resale value may qualify for better rates. Businesses with at least $25,000 in monthly revenue and credit scores as low as 500 may be eligible with Sunwise Capital.

Whether you are upgrading manufacturing machinery or investing in service vehicles, knowing what affects your loan rate puts you in a better position to make a confident choice. Sunwise Capital offers fast application reviews, and in many cases, funds can be disbursed within 24 hours.

Comparing Equipment Loan Options for Small Businesses

When it comes to business loans for equipment, knowing how to compare your options is just as important as understanding average interest rates. Different equipment loan products can vary in terms, rates, and flexibility, which can ultimately impact your monthly payments and overall cash flow.

Here are key features to consider when comparing small business equipment loan options:

• Loan Amount Range
  Sunwise Capital offers equipment loans from $10,000 to $30 million. This allows both new purchases and larger equipment upgrades to be financed without straining working capital.

• Repayment Term Options
  Flexible loan terms up to 84 months help businesses manage monthly payments effectively and match repayment to revenue cycles.

• Application Speed and Funding Time
  The simple online application takes just minutes. For qualifying borrowers, approval can happen within hours and funding within 24 hours.

• Credit Score Requirements
  Equipment financing is available for credit scores starting at 500, along with other loan eligibility criteria that are often within reach for small manufacturers. A FICO score helps lenders evaluate your creditworthiness and potential lending risk.

• Monthly Revenue Minimums
  Businesses with at least $25,000 in monthly revenue may qualify. This ensures the loan structure fits companies that are actively generating income.

• No Hard Credit Pull to Prequalify
  The prequalification process uses a soft credit check. This protects your credit score while exploring equipment loan options.

• Collateral-Free Financing Options
  Many loans are available without requiring additional collateral, as the equipment itself often secures the loan.

• Fixed Interest Rates Available
  Sunwise Capital offers fixed rate equipment loans. This provides predictable monthly payments and helps with budgeting over the life of the loan.

By comparing these features and aligning them with your specific equipment financing needs, you can confidently choose a loan option that supports growth without adding financial strain.

Using a Loan Calculator to Estimate Equipment Loan Payments

Knowing your potential monthly payment before committing to an equipment loan can make a big difference for your business. That’s where a loan calculator comes in. It’s a straightforward yet powerful tool that helps you visualize exactly what you’ll pay and how that fits into your budget.

With a loan calculator, you can enter variables like loan amount, interest rate, and repayment term. The result gives you clarity on total repayment, estimated interest, and monthly obligations. This makes planning more effective, especially for small and mid-sized businesses with tight margins.

Understanding your numbers helps you decide if a specific loan structure is workable. Even better, Sunwise Capital has no prepayment penalties, so you have flexibility to pay off the loan early if your cash flow allows. Adjusting loan inputs helps you build a plan that aligns with both your current needs and long-term goals.

Evaluating Loan Term and Repayment Flexibility With Equipment Financing

When you’re weighing equipment financing options, the loan term and repayment flexibility can play just as big a role as the interest rate. The length of your loan term affects your monthly cash flow and how quickly you build equity in the equipment.

Here are key features to consider:

• Loan Terms Up to 84 Months
  Sunwise Capital offers flexible loan terms that allow businesses to spread out equipment loan payments in a way that fits their operating cycle and financial strategy.

• No Prepayment Penalties
  You can pay off your equipment loan early without fees, which helps reduce overall loan interest and gives your business more control over repayment.

• Fixed Monthly Payments
  Equipment financing with fixed interest rates helps you manage consistent monthly payments and maintain predictable cash flow.

• Repayment Tailored to Business Needs
  Loan structures can be aligned with how and when your equipment will generate revenue, supporting both short-term use and long-term planning.

Choosing the right loan term and repayment structure gives your business the flexibility to grow without added financial pressure. With Sunwise Capital, you can secure equipment financing that fits your operations and supports long-term success.

Is Equipment Leasing a Better Fit Than Purchasing With Loans?

For many small and mid-sized businesses, deciding between equipment leasing and purchasing with loans depends on available cash flow, usage needs, and how long the equipment will remain valuable in your operations.

Here are a few important considerations:

• Lower Monthly Payments With Equipment Leasing
  Leasing equipment can offer lower monthly payments and eliminate the need for a large upfront investment, making it easier to preserve working capital.

• Upgrade Flexibility
  Equipment leasing allows you to upgrade to newer models more easily at the end of the lease, which is helpful if your industry relies on rapidly changing technology.

• Ownership and Long-Term Value With Equipment Loans
  Financing equipment with a loan means you own the asset once it is paid off, which may provide long-term value and potential tax advantages through depreciation.

• Tailored Solutions for Your Industry
  Sunwise Capital offers both equipment loans and leasing options to fit different business models, helping you choose the structure that supports your cash flow, loan term, and operational timeline.

The decision between leasing and purchasing equipment depends on factors like expected equipment lifespan, cash flow preferences, and how often upgrades are needed. Understanding the differences between leasing and buying equipment can help you make a financing choice that supports long-term operational efficiency.

Get Started With Equipment Financing Today

Need new or used equipment to grow your business? With Sunwise Capital, applying is quick, secure, and won’t affect your credit score. You can prequalify in minutes with a soft credit check, receive approval in as little as four hours, and access funding within one business day for loans up to $750,000.

Loan amounts range from $10,000 to $30 million, with flexible terms up to 84 months and no prepayment penalties. Whether you’re upgrading a single piece of equipment or financing multiple purchases, Sunwise Capital offers straightforward, fixed-rate equipment financing designed to fit your goals and cash flow.