What Lenders Look For in an Equipment Financing Application

If you’re thinking about financing equipment, you might be wondering: What do lenders actually care about when they review my application? Knowing this ahead of time can save you stress and improve your chances of approval.

Here are the key things lenders look at and in order of importance:

1. Credit History

Both your business and personal credit matter. Lenders want to see that you’ve managed debt responsibly in the past. Don’t panic if it’s not perfect — a broker can still find options for you.

2. Time in Business

The longer you’ve been operating, the better. Start-ups can still get approved, but established businesses usually have an easier time.

3. Financial Strength

Lenders often review your revenue, cash flow, and existing debt. They want to know if you can handle the new payment comfortably.

4. Equipment Value

What kind of equipment are you financing? Is it new or used? Specialized or common? Lenders like assets that hold their value and are easy to resell if needed.

5. Down Payment (Sometimes)

Not always required, but putting some money down can strengthen your application and lead to better terms.

Pro tip: Working with a broker helps because we know which lenders focus on which factors. Instead of wasting time applying in the wrong place, you get matched with the right fit from the start.