Equipment Financing Rates — February 2026

Equipment financing rates in February 2026 reflect the broader improvement in borrowing costs following the Federal Reserve's rate cuts in late 2025. With the equipment serving as collateral, equipment loans typically offer more competitive rates than unsecured business financing.

Rates vary significantly based on the type of equipment, whether it is new or used, your credit profile, and the lender you choose. This guide breaks down current rates across all major categories.

Equipment Financing Rate Ranges

Here are the typical rate ranges you can expect for equipment financing as of February 2026:

Rates by Equipment Type

Different equipment categories carry different risk profiles, affecting available rates:

Equipment with strong resale markets (vehicles, construction equipment) typically commands better rates because lenders can more easily recover their investment if you default.

New vs. Used Equipment Rates

Whether you are financing new or used equipment affects both your rate and available terms:

Used equipment carries higher rates because the collateral has less value, depreciation is harder to predict, and the equipment may have maintenance issues. However, the lower purchase price can offset the higher rate in total dollars paid.

Rates by Credit Tier

Your business and personal credit profile significantly impacts available rates:

Business factors also matter. Lenders consider time in business (2+ years preferred), annual revenue, profitability, and existing debt levels when pricing equipment loans.

Equipment Loan vs. Lease

You can either purchase equipment with a loan or lease it. Here is how they compare:

Manufacturer vs. Independent Financing

Many equipment manufacturers offer their own financing (captive finance companies). Here is how they compare to independent lenders:

• Manufacturer financing advantages — Promotional rates (sometimes 0%), streamlined process, may bundle service/warranty
• Manufacturer financing drawbacks — May require specific equipment purchase, promotional rates may have restrictions, less negotiation room
• Independent lender advantages — Finance any equipment, more term flexibility, can shop rates
• Independent lender drawbacks — No promotional rates, separate relationships to manage

When a manufacturer offers 0% or very low promotional financing, always read the terms. Sometimes these promotions require forgoing a cash discount that would be more valuable, or have prepayment penalties.

SBA Options for Equipment

SBA loans offer competitive rates for equipment purchases, especially for larger amounts:

• SBA 7(a) — Up to $5 million, 10-year terms for equipment, rates currently 9.00%-11.50%. Good for general equipment needs.
• SBA 504 — For heavy equipment over $350,000 with 10+ year useful life. Fixed CDC rates of 5.80%-6.85%, only 10% down. Best rates available for qualifying purchases.
• SBA Express — Up to $500,000, faster approval, rates 11.25%-13.25%. Good for smaller equipment with time pressure.

How to Get the Best Rate

Follow these strategies to secure the most competitive equipment financing rate:

• Improve your credit — Even 20 points can move you to a better tier
• Make a larger down payment — Reduces lender risk and often improves rates
• Choose equipment wisely — Well-known brands with resale markets get better rates
• Shop multiple lenders — Get at least 3 quotes; rates vary significantly
• Consider SBA — For purchases over $100,000, SBA options may beat conventional
• Ask about manufacturer promos — Check for promotional rates before buying
• Provide financials upfront — Strong documentation can help negotiate better terms

Current Market Outlook

Equipment financing rates have improved from their 2023-2024 peaks, following the decline in the prime rate from 8.50% to 6.75%. For borrowers who delayed equipment purchases waiting for better rates, current conditions offer the best financing environment in over two years.

With the Federal Reserve signaling patience on further rate cuts, rates may stay at current levels for several quarters. If you have equipment needs and qualify for competitive financing, this is a reasonable time to move forward.