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Good Credit Equipment Financing (680 to 719)

Equipment financing for good credit profiles (FICO 680 to 719). Competitive rates, standard terms, most programs available.

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Good credit (FICO 680-719) qualifies you for mainstream equipment financing at competitive rates. You have access to most lender programs, with rate ranges slightly above excellent-credit pricing but well below sub-prime.

What to expect

Typical APR 9.9-13.9%
Typical term 48-72 months
Down payment 5-15%
Time to fund 1-5 business days

Where you sit

Good-credit borrowers are the sweet spot for most prime equipment lenders. The difference between you and an excellent-credit borrower is 3-4 points of APR; over a 60-month $100,000 loan, that adds ~$8,000 of total interest. Moving from good to excellent over time (paying down revolving balances, building tradelines) can pay back significantly on your next financing.

Where you can negotiate

  • Get 2-3 soft-pull pre-qualifications. Lenders vary by 1-3 points within the good-credit tier.
  • For larger transactions ($250K+), brokers can sometimes pull captive promotional offers.
  • If you have strong revenue (10x+ monthly payment), some lenders will price you near excellent-credit tier.

Improving to excellent

  1. Pay down credit card balances to under 30% utilization (under 10% for top FICO)
  2. Pay every bill on time, every month, for at least 6 months
  3. Avoid new hard inquiries in the 60 days before financing
  4. Keep old accounts open (length of credit history matters)
  5. Mix of credit (revolving + installment) helps

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

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Editorial review by Ed Stapleton Jr. · Founder & Editor

How lenders evaluate this profile and common questions

Good credit (680-719 FICO) accesses standard equipment financing programs with competitive rates and broad approval. Good credit borrowers may face slightly higher rates than prime but access app-only programs at standard equipment terms.

Good credit improvement to prime (720+) can save 50-150 basis points on equipment financing rates.

Our financing programs for Good Credit Equipment Financing (680 to 719)

The programs below describe the buckets we work in for this equipment. We match every application against the program tier that fits the credit profile, time in business, and structure preference. The program assignment is the single biggest driver of rate, term, and approval speed.

Standard equipment program

App-only to $150K with competitive rates.

  • Min credit: 680
  • Min time in business: 24 months
  • Typical advance: 100% new
  • Best for: Good credit established borrowers

Manufacturer captive financing

Available with slightly higher rates than prime borrowers.

  • Min credit: 680
  • Min time in business: 24 months
  • Typical advance: 100% new
  • Best for: Good credit OEM equipment buyers

Issues specific to Good Credit Equipment Financing (680 to 719) deals

These are not the standard equipment-finance pitfalls. They are the patterns we see on this exact equipment, in this exact market, that buyers without recent experience tend to miss.

Approaching prime threshold

Borrowers within 20 points of prime threshold benefit from credit improvement before equipment purchase. 50-150 basis points rate savings on prime threshold crossing.

Down payment vs rate tradeoff

Good credit borrowers can sometimes lower rate by 25-75 basis points with additional down payment. Calculate breakeven.

Time in business adds 25-75 basis points

24+ months TIB at good credit accesses better terms than under 24 months at same credit.

How we evaluate this

Our perspective on the topic above weighs four primary factors. Knowing how they map to your specific situation helps frame the rest of the process.

  • Equipment as collateral. The equipment itself secures the loan. Asset class, age, condition, configuration, and resale market depth all factor into how lenders advance against the cost.
  • Use of equipment. Will the asset generate revenue immediately, will it replace an existing producing asset, or is it additive capacity. Revenue-replacement deals close most easily.
  • Financial statement quality. For transactions above $250,000, lenders weight the quality of financial statements: are they CPA-prepared, are they current within 90 days, do they reconcile to bank statements. Strong financial reporting opens up better pricing on larger transactions.
  • Business credit profile. D&B Paydex, Experian Intelliscore, and trade references from current vendors. Stronger business credit reduces personal-guarantee scope and improves the rate.

Common pitfalls

The patterns below show up repeatedly on financing transactions. Catching any of these at the application or document-review stage saves real money later.

Cross-collateral creep

Adding new equipment financing through the same lender often includes cross-collateral language that ties the new equipment to the prior loan and vice versa. Not always bad, but it limits flexibility if you need to sell or refinance one piece of equipment without paying off the other.

Personal guarantee scope

On most equipment loans under $250,000, owners with 20 percent or more equity sign personal guarantees. Read the guarantee language. Some guarantees are limited to the specific loan; others are continuing and cover any future borrowing from the same lender. Limit the guarantee to the specific transaction when possible.

Add-on funding within the deal

During the application or document review stage, some borrowers add items (extended warranty, training, additional configuration) without realizing the loan amount is re-quoted at the higher figure. Each addition can change the rate, term, and approval terms. Confirm the final loan amount before signing rather than tracking changes piecemeal.

Insurance lapse triggers

We require physical damage insurance on the financed equipment for the life of the loan, with us named as loss payee. If your policy lapses, we place force-placed insurance at three to five times the cost of an open-market policy and bill you for it. Keep proof of insurance current with us.

What to verify before you sign

Lender funding documents reference the equipment and the transaction terms. Catching gaps between what was discussed and what is documented saves real money. The items below cover what to confirm before signing.

  • Electrical and instrument cluster. All gauges working, all warning lights cycling correctly on key-on, no fault codes stored in the ECU. Modern equipment with electronic controls is expensive to diagnose if anything is wrong.
  • Title or MSO clean. Title for titled equipment, manufacturer statement of origin (MSO) for new equipment that has not been titled yet. Check for prior liens, salvage history, and that the seller is the title holder.
  • Hydraulics and ancillary systems. Full range of motion on every hydraulic function, no leaks, smooth operation, no chatter or pump whine. Hydraulic repairs on heavy equipment run into five figures fast.
  • Service history complete. Maintenance records back to first owner where possible. Gaps in service history reduce both lender comfort and resale value.
  • Hours-meter or odometer history. Beyond the current reading, confirm the historical pattern of use. A unit with 4,000 hours from regular daily use is different from a unit with 4,000 hours from intermittent project work. Service records, when available, document the use pattern.

Common questions on this

Does my application count as a hard credit pull?
Prequalification through us is a soft pull with no impact on your score. When you accept our offer and proceed to formal application, we run a hard pull at that stage with your consent.
Can I see all the structures you can approve, or only the one you recommend?
You see the structure or structures we can approve based on your profile. We present the structure we believe fits your profile best. If you want to compare against an offer you have independently, share it with us and we will tell you how our approval stacks up.
Can I trade in equipment as part of the down payment?
Yes, on most loans. The trade value is treated as cash down for loan-to-cost calculations. We will want to see documentation of the trade-in and confirmation that any prior lien on the trade-in is being paid off through the transaction.
What if the equipment will be cross-border or international?
Equipment that crosses an international border in the course of business (cross-border trucks, certain aviation) is financeable but requires the lender to confirm coverage in the equipment use. Cross-border use can also affect insurance, registration, and apportioned licensing.
Are there programs for equipment under $25,000?
Yes. We offer a micro-ticket program from $5,000 to $25,000 with abbreviated documentation, faster decisioning, and slightly higher rates than mid-range deals. The trade-off is speed for pricing; for time-sensitive small purchases, the micro-ticket route closes in a day or two.
Can I pay off the loan early?
Yes, but check the pre-payment provision in your documents. Some structures carry a pre-payment penalty in the first 12 to 36 months. Others are open. Knowing the payoff math before signing prevents surprises if you decide to refinance or sell out of the equipment early.
Quick answer

Equipment financing at this credit profile accesses specific program tiers with rate ranges, down payment, and term length aligned to the credit risk. The exact program tier match comes from soft-pull pre-qualification against our program grid.

Quick answers

Direct answers to the questions we hear most on good credit equipment financing (680 to 719) applications. Each answer is one we have given to a real buyer in the last quarter.

What is the difference between a captive lender and a bank?
Captive lenders are manufacturer finance arms (CAT Financial, John Deere Financial, etc.) that finance their own equipment. They often offer promotional rates and longer terms. Banks finance any equipment but typically at standard market rates with more conservative financing review and longer approval cycles.
Can I add attachments to an existing equipment loan?
Sometimes, depending on the program tier and the original loan structure. Adding to an existing loan typically requires a loan modification or amendment. More commonly, attachments finance as a separate transaction at standard equipment terms, sometimes at a modest premium over the original equipment rate.
How fast can I get funded?
Standard equipment loans on app-only programs (under $150K typically) close in 24 to 72 hours from doc submission. Full-financials programs run 3 to 7 business days. Titled equipment with title transfer adds 1 to 4 weeks.
Can equipment financing affect my ability to get other loans?
Yes, in two ways: the UCC filing is a public record affecting subsequent lender review, and the monthly payment becomes a fixed obligation affecting debt service coverage ratios. Blanket UCC liens (rather than specific equipment UCC) can specifically limit subsequent financing capacity.
Is equipment financing tax deductible?
The interest portion of equipment loan payments is deductible as a business expense. The equipment itself qualifies for depreciation or Section 179 immediate expensing if eligible. Lease payments on true operating leases deduct fully as business expense. Capital lease structures (EFA $1 buyout) get depreciation treatment.
Does a soft-pull pre-qualification affect my credit score?
No. A soft pull does not affect your credit score. The hard pull happens at final financing review if you accept the offer. That is the only inquiry that posts to bureaus.

How we structure financing

The financing structure that fits depends on the actual situation. Below are the most common decision branches we walk through with buyers, in plain "if X, then Y" form.

If You have access to manufacturer captive promotional financing
Then Compare carefully against bank/independent lender rates. Captive promotions sometimes look better on stated rate but include adjustments (lower discount, required service bundles) that change the net economics.
If You plan to cycle equipment every 36 to 48 months
Then A true operating lease with FMV residual often beats loan or EFA structures. The lower payment over a shorter term, with return option at the end, fits the use case.
If You expect rate environment to improve in the next 12 to 18 months
Then Consider open pre-payment structures or a shorter term you can refinance later. The trade-off is the upfront cost; the refinance option becomes valuable if rates drop 100+ basis points.
If You expect to pay the loan off within 12 months
Then Check the pre-payment penalty before signing. Standard structures penalize early payoff in year one. Open pre-payment loans cost slightly more in stated rate but eliminate the penalty.
If You are buying equipment that will be sub-rented or leased to others
Then Confirm at application. Sub-rental changes financing review analysis (revenue stability, asset risk) and may require a different program than owner-account use.

What if something changes mid-term

Equipment loans run for 36 to 96 months. Things change. The patterns below cover the situations that come up most often during the loan term and how they typically resolve.

Lender becomes difficult to work with

Most equipment loans are assumable or assignable with lender consent. Refinancing to a different lender is the more common path. Document the issues clearly; the situation rarely improves and the alternatives exist.

Business ownership change during loan term

Most equipment loans are personally guaranteed and assumable with our consent during ownership change. The new owner submits an application similar to the original; we review and either consent or require payoff.

Borrower cash flow stress mid-term

Contact us BEFORE missing a payment. We work with borrowers in temporary stress through extension, deferral, or restructure. Missed payments without contact trigger default mechanics that limit options.

Equipment damage during the loan term

Insurance proceeds pay off the loan balance or fund replacement equipment with lender consent. The loan does not cancel automatically with the equipment loss; coordination with lender is required.

Authoritative sources

The rate ranges, structures, and program details on this page are informed by our internal financing book and the public industry resources below. We link out so you can verify any specific claim or go deeper.

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Reviewed by

Ed Stapleton Jr.

Founder & Editor

Ed Stapleton Jr. is a serial entrepreneur who has started or acquired over a dozen businesses. He founded Fund My Equipment as the resource he wished he had along the way.

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