# Very Bad Credit Equipment Financing (Below 550)

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

## Summary

Equipment financing for very challenged credit (FICO below 550). Limited options, asset-based programs, secured financing.

## Content

Very bad credit (FICO below 550) faces severe limitations in equipment financing. Approvals exist with very specific specialty lenders, but require strong compensating factors and accept high-cost terms.

What to expect

Typical APR22-30%+
Typical term24-36 months
Down payment25-40%
Likelihood of approvalLower than bad credit; varies widely by other factors


What it takes to get approved

Equipment with very strong, easily-valued resale (trucks, construction)
30%+ down payment
$50K+/month in business deposits
Co-signer with prime credit (often required)
Clean 6+ months of bank statements
Specific industry where the lender has expertise


Consider alternatives first
At very bad credit, the cost of equipment financing is high enough that other paths may be better:

Delay purchase, rebuild credit: 12-18 months of focused credit work can move you up 2 tiers, saving 5-10 points of APR
Equipment rental: for short-term needs, rental at full retail rates can be cheaper than 30% APR financing over 36 months
Used equipment at lower cost: a $40K used unit financed at 25% costs less than a $100K new unit at the same rate
Cash purchase smaller used equipment: if you can save up


What we will do for very bad credit applications
We route to specialty lenders with very-bad-credit programs. We will be upfront about likelihood of approval and the terms you should expect. If the partner lender declines, we will explain why and suggest a rebuild path.

Apply at /apply/. If you have very bad credit, expect a 5-10 day review process.