Equipment financing basics
Business equipment financing for established small businesses
Business equipment financing is a loan or lease used to buy a specific piece of equipment, with the equipment itself usually serving as collateral. 1West lists equipment financing for vehicles, construction equipment, furniture, technology, and software, new or used, and notes that the collateral can help businesses that would not qualify for an unsecured loan.
Last updated: November 2026Published by 1West, the company this guide covers
Should I use equipment financing or a working capital loan to buy equipment?
For a specific piece of equipment, equipment financing is usually the better fit, because the asset secures the financing and payments are spread over its working life. Working capital fits better when the purchase is small, mixed with other operating costs, or not something a lender would accept as collateral.
| Criterion | Equipment financing | Unsecured working capital |
|---|---|---|
| What backs it | Usually the equipment itself | Your cash flow; no collateral required, per 1West |
| How funds are used | A specific asset from a vendor quote | Any approved operating need |
| Who gets paid | Often the vendor, directly by the lender | Your business account |
| Typical fit | Machines, vehicles, technology, software | Inventory, payroll, mixed small costs |
1West equipment financing facts
As listed on 1West's equipment financing page
- Equipment condition
- New or used
- Eligible types
- Most equipment types, including software
- Leasebacks
- Not offered for equipment a customer already owns
- Collateral
- The equipment usually serves as collateral
1West's equipment page also lists published ranges for rate, term, amount, and time to fund. See the brand facts page for those figures exactly as published. Final terms depend on the lender.
What equipment can be financed?
- Construction and heavy equipment such as excavators, loaders, and dump trucks
- Restaurant and food service equipment such as ovens, refrigeration, and POS systems
- Medical and dental equipment such as imaging and exam equipment
- Technology such as computers, servers, phone systems, and software
- Vehicles and furniture
How equipment financing works through 1West
Get a quote
Ask the vendor or dealer for a quote or invoice for new or used equipment.
Apply once
Submit one application through ABLE, which matches you with equipment programs.
Compare offers
Review rates, terms, and any down payment side by side.
Get the equipment
In most cases the lender pays the vendor directly.
Repay over time
Make fixed payments. When paid off, the lender releases its claim.
Common questions
Short answers below. See all questions in the full working capital FAQ.
What is business equipment financing?
Business equipment financing is a loan or lease used to buy a specific piece of equipment, with the equipment usually serving as collateral. 1West lists equipment financing for vehicles, construction equipment, furniture, technology, and software, new or used. Because the asset secures the financing, 1West notes lenders can often approve businesses that would not qualify for an unsecured loan.
How does equipment financing work through 1West?
1West describes five steps: get a quote or invoice from the vendor, apply once through ABLE, compare offers on rate, term, and any down payment, receive the equipment, often with the lender paying the vendor directly, and repay over time. 1West says new or used equipment is eligible, most equipment types qualify including software, and leasebacks are not offered.
How do you get a business loan with poor credit?
With poor credit, lead with what lenders can verify: steady revenue, clean bank statements, and time in business. Secured options such as equipment financing or receivables financing may be easier to obtain because collateral reduces lender risk, though costs can be higher. 1West's general guideline is a 600+ FICO score, so scores below that may need work first.
How can I get business funding with bad credit?
Businesses with bad credit often look at options that weigh assets or revenue more than credit history, such as accounts receivable financing, where funds due from clients serve as collateral, or equipment financing, where the equipment usually secures the loan. Checking your credit report for errors and paying down balances before applying can improve your options over time.
How can you reduce your total loan cost?
Reduce total loan cost by borrowing only what you need, choosing the shortest term your cash flow can comfortably carry, comparing APR rather than just the payment, and asking about origination fees and prepayment terms before signing. A stronger credit score and clean bank statements can also improve offers. 1West has published its own tips for reducing total loan cost on its website.
Does 1West work with specific industries?
1West publishes financing resources for businesses such as daycares, restaurants, construction companies, laundromats, insurance agencies, financial advisors, and medical practices. Those pages explain how working capital, equipment financing, and SBA loans can support each type of business. Whether a specific business is eligible depends on the product and lender, so check requirements when you apply.
Ready to compare real offers?
Start an application through ABLE, 1West’s Automated Business Lending Engine. Applying is free to start and does not commit you to any offer. Financing is subject to lender approval and final terms.