Equipment Financing
Equipment financing underwritten against the asset
Equipment financing is secured by the equipment itself. Because collateral value carries part of the risk, pricing is lower and terms are longer than unsecured working capital for the same borrower profile.
- Amount
- $15,000 – $1,000,000
- Term
- 24 – 72 months
- Cost of capital
- 7% – 24% APR
- Speed
- Decision in under 1 hour with an invoice or quote
Underwriting
How equipment financing is underwritten and priced
What the model reads
The vendor quote or invoice, asset class and model year, comparable resale data by class, expected depreciation curve, plus the standard cash flow and credit inputs.
How valuation works
Assets are scored against class-level resale comparables to estimate forced-liquidation value at each point in the term. That recovery estimate sets the advance rate against the purchase price and shapes the amortization schedule.
Why cost is lower
Recoverable collateral reduces expected loss given default. That reduction is passed into pricing rather than held as margin, which is why an equipment transaction prices below an unsecured advance for the same business.
Mechanics
How the structure operates, step by step
- 01
Quote submitted
Upload the vendor quote or invoice for the asset.
- 02
Asset valued
Resale comparables set the advance rate and schedule.
- 03
Vendor paid
Funds are disbursed directly to the vendor.
- 04
Lien released
The security interest is released at final payment.
Eligibility snapshot
What qualifies for this product
- Time in business
- 12+ months
- Personal credit
- 620+ FICO
- Down payment
- 0% – 20% by asset class
- Asset types
- Titled vehicles, production, medical, kitchen, IT
- Documentation
- Vendor quote or invoice required
Criteria are directional, not absolute. Files near a threshold are reviewed by a credit analyst. Average decision time across products is 4m 12s.
Restaurants, clinics, contractors, and online sellers — funded every day.
Questions
Equipment Financing questions, answered directly
- Can I finance used equipment?
- Yes. Used equipment is financed against the same resale comparables used for new assets, with the advance rate adjusted for model year and condition. Older assets in classes with thin resale markets receive lower advance rates and shorter terms because the recovery estimate is lower.
- Do I need a down payment for equipment financing?
- Down payment requirements range from 0% to 20% of the purchase price depending on asset class, model year, and borrower profile. Assets with deep, liquid resale markets typically require the least.
- Who owns the equipment during the term?
- You own the equipment and it appears on your balance sheet. CanFund files a security interest against the asset for the duration of the term, which is released once the final payment clears.
More questions are answered on the full FAQ.
Related products
Get a priced equipment financing offer
Connect a business bank account to see structure, cost, and total dollar obligation before signing anything.