Equipment financing: amounts, terms, down payments and Section 179 (2026)
Edited by Moe Ameen · Published
Equipment financing pays for machinery, vehicles or tools, usually with the equipment itself as collateral. The lenders we checked finance up to $500,000 on a single application over two to six years, and Kapitus and Crest Capital say buyers they accept can finance the full cost with no down payment. SBA 504 and 7(a) loans also cover equipment; 7(a) equipment loans run up to 10 years, and 504 terms follow the equipment's useful life.
Key takeaways
- Kapitus says the equipment you buy is the only collateral it needs.
- Crest Capital and Kapitus advertise 100% financing with no down payment for applicants they accept.
- A loan means you own the equipment; a lease ends with a buyout, renewal or return.
- The IRS's 2026 Section 179 limit is $2,560,000.
How does equipment financing work?
The lender pays for the equipment and you repay over a fixed term. The equipment usually secures the loan, so lenders may skip other collateral.
Kapitus says the equipment you're buying is the only collateral it needs [3]. Crest Capital says it takes no blanket liens and no cross-collateral [2]. Ameris Bank Equipment Finance, formerly Balboa Capital, sets different limits for hard and soft collateral: up to $500,000 and $350,000 on an application alone [1].
Should I lease or finance equipment?
Financing means you own it from day one. A lease ends with a choice to buy the equipment, renew the lease or return it.
Crest Capital says with a loan you own the equipment from day one, and a lease ends with a buyout or renewal [2]. National Funding describes its lease as giving you the option to renew, return or buy [4]. Wells Fargo offers TRAC and operating leases, but its equipment finance unit serves businesses with $25 million to $2 billion in revenue [5].
How much down payment do I need for equipment financing?
Sometimes none. Crest Capital and Kapitus both advertise 100% financing with no down payment for applicants they accept.
Crest Capital says most applicants it accepts get 100% financing with no down payment [2], and Kapitus says the full cost can be financed with no down payment for buyers who meet its criteria [3]. Ameris doesn't publish a down payment figure [1].
What credit score do equipment lenders want?
Ameris Bank publishes 640, Crest Capital 650 for owners of 20% or more, and Kapitus 660, each with two years in business.
Ameris also asks for $100,000 in annual revenue [6]. Crest wants two years under current ownership and states no revenue minimum [7]. Kapitus lists a $20,000 minimum financing amount [3]. More lenders are compared in funding with fair credit.
Can I deduct financed equipment under Section 179?
Possibly. For 2026, the IRS caps the Section 179 deduction at $2,560,000, reduced once equipment placed in service tops $4,090,000.
That's the IRS's 2026 limit [8]. Crest Capital notes financed equipment may count if it meets Section 179 requirements and is placed in service during the tax year [2]. A tax professional can tell you whether your purchase fits.
Glisten check
Equipment lenders side by side
| Lender | Amount | Term | Down payment | Collateral |
|---|---|---|---|---|
| Ameris Bank Equipment Finance | Up to $500,000 on application only [1] | 24, 36, 48 or 60 months [1] | Not published | Hard or soft collateral tiers [1] |
| Crest Capital | $10,000–$500,000 on one application [2] | 24–72 months [2] | None for most applicants it accepts [2] | No blanket liens or cross-collateral [2] |
| Kapitus | From $20,000; application only up to $500,000 [3] | Up to 72 months [3] | None for buyers who meet its criteria [3] | The equipment only [3] |
| National Funding | Up to $150,000 [4] | 2–5 years [4] | Not published | Not stated on the page we read |
| SBA 504, via lenders | Up to $5 million; $5.5 million for small manufacturers [11] | 10, 20 or 25 years [9] | Not stated on sba.gov's 504 page | Not stated |
National Funding's page cites a Section 179 limit of $2,560,000, which matches the IRS's 2026 figure [4][8]. The SBA 504 loan only covers equipment with at least 10 years of useful life left [9].
Is this right for you?
Best for
- Owners buying machinery, vehicles or tools with a long useful life.
- Businesses that want to keep other assets free of liens.
Not ideal for
- Working capital or inventory. See working capital options instead.
- Tax advice on Section 179. Ask a tax professional.
Frequently asked questions
Can I finance used equipment?
National Funding says it finances or leases new or used equipment [4].
Is equipment financing hard to get with fair credit?
Ameris Bank publishes a 640 minimum and Crest Capital 650, both with two years in business [6][7].
What's the Section 179 limit for 2026?
$2,560,000, reduced dollar for dollar once eligible equipment purchases exceed $4,090,000 [8].
How we know this
On October 28, 2026 we read each equipment lender's own product and requirements pages, the SBA's 504 and 7(a) pages, and IRS Publication 946 for the 2026 Section 179 limits.
- Equipment financing, Ameris Bank Equipment Finance. Checked October 28, 2026.
- Crest Capital, Crest Capital. Checked October 28, 2026.
- Equipment financing, Kapitus. Checked October 28, 2026.
- Equipment leasing, National Funding. Checked October 28, 2026.
- Equipment financing, Wells Fargo. Checked October 28, 2026.
- Equipment leasing, Ameris Bank Equipment Finance. Checked October 28, 2026.
- Credit requirements, Crest Capital. Checked October 28, 2026.
- Publication 946: How to depreciate property, IRS. Checked October 28, 2026.
- 504 loans, SBA. Checked October 28, 2026.
- 7(a) loans, SBA. Checked October 28, 2026.
- SBA 504 loans, NerdWallet. Checked October 28, 2026.
- SBA loans for equipment, NerdWallet. Checked October 28, 2026.