Use case · Equipment financing
Equipment down? Honest options to get back to revenue this week.
A dead truck or failed walk-in freezer is a revenue emergency. The good news: equipment financing exists specifically for this, funds in 3–5 days, and costs a fraction of an MCA because the equipment is the collateral. Here's the honest comparison.
If you have 10 minutes
Take the 2-min quiz, then talk to us.
The quiz tells you which tier you're in. If you qualify for equipment financing, we'll say so — it's almost always cheaper. If MCA is your best realistic option, we'll route you to the right A-paper funders. No credit pull on either.
Options ranked cheapest to most expensive
Equipment financing is collateralized, which is why it's so much cheaper. The equipment itself secures the loan — you just need to qualify on credit and cash flow.
| Option | Fund speed | Cost | Realistic? |
|---|---|---|---|
| Existing LOC draw | Same day | 6–30% APR | If you have one |
| Equipment financing (Currency, Crest, Balboa) | 3–5 days | 6–18% APR over 2–7 yrs | 620+ FICO, 12+ mo TIB |
| Vendor / dealer financing | 1–3 days | 0% promo to 15% APR | If dealer offers it |
| Lease-to-own | 3–5 days | Similar to financing | If you want lower monthly |
| Owner contribution | Same day | 0% — just your cash | If you have it |
| MCA (A-paper) | 4 hrs – 2 days | 1.20–1.32 factor | Last resort — expensive |
| MCA (B/C-paper) | 2–5 days | 1.32–1.50 factor | Very expensive |
The speed gap between equipment financing (3–5 days) and MCA (1–2 days) is often not worth the 5–10x cost difference. Apply for equipment financing first, in parallel — you can always decline if something faster is needed.
Five-minute decision tree
Read top to bottom. Stop at the first “yes.”
Step 1
Do you have an active business LOC with available capacity?
Draw from it now. Cost is dramatically lower than any MCA, funds today. Pay it back from the revenue you recapture once equipment is running. Stop reading.
Step 2
Does the equipment dealer or manufacturer offer financing or vendor programs?
Apply through the dealer first. Vendor-affiliated lenders (think CAT Financial, Kenworth Financial, or restaurant equipment OEM programs) often have promotional APRs because they want to move equipment. Easiest and often cheapest.
Step 3
Do you have 620+ personal FICO and 12+ months in business?
Apply for equipment financing today through Currency Financial, Crest Capital, or Balboa Capital. These are not slow SBA programs — clean files fund in 3–5 business days. The equipment is the collateral; they underwrite it heavily, which is why the rate is 6–18% APR vs. an MCA's 60–100% APR-equivalent.
Step 4
Want lower monthly payments and don't mind not owning it outright immediately?
Lease-to-own is worth comparing. Monthly payment is lower because you're not fully amortizing the purchase. Trade-off: you'll pay more total over the lease term. Good for equipment you plan to upgrade in 3–5 years; bad for equipment you'll run for 10 years.
Step 5
None of the above — credit is challenged (below 580), under 12 months TIB, or need funding in under 48 hours?
MCA is a legitimate option here, but only if the lost revenue from downtime exceeds the MCA cost. A trucker losing $4,000/week while waiting for equipment financing pays more in lost revenue than the extra MCA cost. Do the math. Get your match and compare to your equipment-financing options in parallel.
Equipment loan vs. MCA — the real numbers
Owner-operator trucker. Monthly revenue: $80,000. Engine blows — needs $40,000 for a replacement. Option A: equipment loan at 10% APR over 5 years. Option B: MCA at 1.35 factor over 9 months.
Option A — equipment loan (10% APR, 5 yr)
Option B — MCA (1.35 factor, 9 mo)
The equipment loan saves you $3,000 in fees and costs 7x less on an APR basis. Monthly payment is $5,150 lower. The only scenario where the MCA wins: you truly can't qualify for equipment financing and every week of downtime costs more than the extra $3,000 in fees.
Run your own numbers in the calculator before you sign anything.
What not to do
- Don't take an MCA for equipment if you qualify for equipment financing. Equipment financing is collateralized — the lender holds a lien on the equipment, not your daily revenue. That's why it's 6–10x cheaper on an APR basis. Before you sign an MCA, apply to Currency or Crest Capital. Takes the same 10 minutes and might save you $10,000+.
- Don't lease long-term equipment you'll use for 10 years. Leasing makes sense for equipment you'll upgrade in 3–5 years. For a truck or commercial oven you plan to run for a decade, ownership almost always wins. Run the total cost of ownership comparison before choosing lease over loan.
- Don't assume equipment financing takes 6 weeks. That's the SBA 504 program. Private equipment lenders like Currency, Crest, and Balboa fund clean files in 3–5 business days. You do not have to choose between speed and cost here.
- Don't double up on equipment financing and MCA for the same purchase. Some owners take an MCA for a down payment and equipment financing for the rest. The combined daily ACH plus monthly loan payment is often more than the revenue the equipment generates. Get one or the other, not both for the same asset.
- Don't fund equipment with the same MCA you used for working capital. If you're already in an MCA and need equipment now, treat them as separate decisions. Using MCA renewal funds to also cover equipment compounds your daily ACH and makes the financial position opaque. Evaluate equipment financing as a standalone option first.
Frequently asked questions
- How much down payment do I need for equipment financing?
- Typically 0–20% depending on your credit, the equipment type, and the lender. New equipment from established manufacturers (Kenworth, Caterpillar, Hobart) often qualifies for 0-down programs through vendor-affiliated lenders. Used equipment usually requires 10–20% down. Currency Financial and Crest Capital commonly do 0-down for A-paper borrowers on new commercial equipment.
- Can I get an MCA AND equipment financing at the same time?
- Yes, but be careful. Equipment lenders underwrite based on your ability to service the monthly payment. If you already have a significant daily ACH from an MCA, the equipment lender's debt-service coverage calculation may decline you. Get the equipment financing first (it's cheaper), then consider MCA for working capital if needed. Running both simultaneously is workable if your margins support it — do the math.
- What credit score do I need for equipment financing?
- Most equipment financing lenders want 620+ personal FICO for approval, with better rates above 680. Currency and Crest Capital have programs down to 580 for certain equipment types with larger down payments. Compare to MCA underwriting, which focuses on bank statement revenue and NSFs rather than FICO — an MCA may be more accessible if your credit is challenged, but it will cost significantly more.
- Will an equipment-financing funder approve used commercial equipment?
- Yes, most will — with conditions. Used equipment typically requires an appraisal or dealer invoice to establish value, and lenders cap their advance at 80–100% of appraised value. Age and condition matter: a 5-year-old Kenworth T680 is easier to finance than a 15-year-old one with no service records. Currency and Balboa Capital both have active used-equipment programs.
- How fast does Currency or Crest Capital fund?
- For clean applications (equipment invoice, 3 months business bank statements, driver's license), Currency typically funds in 3–5 business days. Crest Capital is similar. Compare that to the common assumption that equipment financing takes 6–8 weeks — that's the SBA 504 program, not a private equipment lender. For an urgent equipment need, apply Monday and you can often fund by Thursday.
Right now
Two minutes. No credit pull. Real options.
Our pre-qualification flow scores you against equipment lenders and MCA funders simultaneously and shows you indicative rates for both before you hand over any documents. We'll tell you which is cheaper for your actual numbers.
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