Equipment financing is not one-size-fits-all. Lenders develop sector expertise — and pricing, term lengths, and advance rates vary significantly by asset class. Understanding how your industry is viewed by lenders helps you shop smarter and set realistic expectations before you apply.
Construction and heavy equipment
Construction equipment — excavators, skid steers, cranes, dump trucks — is among the most commonly financed asset class in small-business lending. Lenders favor it because the secondary market is deep and liquid: a repossessed piece of iron can be resold through auction without significant effort. This means construction equipment often qualifies for high advance rates (sometimes 100% of purchase price on new equipment) and competitive terms even for borrowers with limited credit history. Loan terms of 36–72 months are common.
Key consideration: utilization rates matter. A seasonal contractor may have strong annual revenue but uneven monthly cash flow — lenders who specialize in construction understand this and will underwrite to annual revenue, not monthly receipts.
Commercial vehicles and transportation
Semi-trucks, box trucks, refrigerated trailers, and other commercial vehicles are heavily financed through a combination of bank lenders, captive finance arms (manufacturer-affiliated), and specialized transportation lenders. Credit standards in this space can vary widely. For-hire carriers with active authority and clean operating records generally get favorable terms. Owner-operators starting out may face higher rates and down payment requirements, particularly if they are financing older equipment.
- New Class 8 trucks: often financed through manufacturer captive arms at competitive rates.
- Used trucks and trailers: generally require more documentation; age-at-payoff rules apply (see our used equipment guide).
- Refrigerated units: specialized collateral that some lenders prefer to avoid; seek transportation-specialist lenders.
- Fleets: volume purchase agreements may be available from captive lenders; fleet management software subscriptions can sometimes be bundled.
Restaurant and food-service equipment
Restaurant equipment — commercial ranges, walk-in coolers, dishwashers, POS systems, smallwares — has lower residual value than construction or transportation equipment. A repossessed commercial kitchen is hard to resell at full value. This means lenders are more cautious: advance rates may be lower, terms shorter, and underwriting more focused on the business's revenue and profitability. Established restaurants with two or more years of strong sales will generally have much better access than new concepts.
One important nuance: some lenders treat restaurant equipment as a single package (the full kitchen buildout) and others will only finance individual high-value items. If you're outfitting a full kitchen, ask whether the lender will finance a package or only itemized equipment over a per-item threshold.
Medical and dental equipment
Medical practices and dental offices are among the most actively financed professional services businesses. Lenders view them favorably: recurring patient revenue, relatively inelastic demand, and professional licensure requirements create stable cash flow profiles. A dental practice financing a CBCT imaging system or a medical clinic purchasing an ultrasound machine will typically find competitive terms and a wide range of lenders.
Medical equipment often has very long useful lives and maintains value well. New digital X-ray systems, diagnostic equipment, and surgical tools depreciate, but high-quality systems from established manufacturers have strong used markets. Longer terms (60–84 months) are available for major medical equipment investments.
Manufacturing and industrial machinery
CNC machines, lathes, laser cutters, injection molding machines, and similar industrial equipment are highly financeable. The key underwriting questions are typically: Is the business profitable? Does the equipment have a broad secondary market, or is it highly specialized? A standard 5-axis CNC machining center is easy to resell; a custom-built proprietary production line is not. Lenders will apply a larger haircut (lower advance rate) on specialty equipment that has limited resale potential outside the current buyer's industry.
Agriculture
Farm equipment — tractors, combines, planters, irrigation systems — has deep lender coverage through manufacturer captive finance arms (John Deere Financial, CNH Industrial Capital), agricultural banks, and Farm Service Agency programs. Seasonal cash flow is well-understood in this space and lenders structure payments accordingly, often with seasonal payment profiles aligned to harvest cycles rather than equal monthly payments.
What every industry application needs
- Business tax returns (2 years) or personal tax returns for newer businesses.
- Bank statements (3–6 months) showing revenue and cash flow.
- Equipment quote, invoice, or auction confirmation with asset details.
- Brief business description — what you do, how long you've been in operation.