# Fair Credit Equipment Financing (640 to 679)

Canonical URL: https://fundmyequipment.com/learn/credit-tier/fair-credit/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_credit_tier

## Summary

Equipment financing for fair credit profiles (FICO 640 to 679). Higher rates, some restrictions, down payment usually required.

## Content

Fair credit (FICO 640-679) qualifies for most equipment financing but at higher rates. Most prime lenders will work with fair-credit applicants who have strong revenue, time in business, and equipment as collateral.

What to expect

Typical APR13.9-17.9%
Typical term36-60 months
Down payment10-20%
Time to fund2-7 business days


What lenders want to see
Fair credit applicants face stricter scrutiny on compensating factors:

Strong monthly revenue ($30K+/month)
2+ years in business
Clean bank statements (no NSF/overdrafts)
Larger down payment
Equipment with strong resale value
Limited existing short-term debt (MCA, working-capital advances are flags)


Path to better rates
The rate gap between fair (~16% APR) and good (~12% APR) is about 4 points. On a $100,000 5-year loan that is roughly $10,000 of interest. Common improvements:

Pay down credit-card balances (utilization is fastest mover)
Time-out a recent late payment (24+ months without recurrence)
Pay off collections or settle judgments
Build business tradelines (Paydex score)


If you have other red flags
Even with fair credit, certain items disqualify many lenders: active tax liens, recent bankruptcy (under 2 years), recent equipment repo (under 3 years). See our active tax liens and recent bankruptcy guides.

Apply at /apply/ for soft-pull pre-qualification.