Not one of the twenty-six US lenders in this record publishes an interest rate on the pages checked, for equipment or for anything else. That is a finding rather than a gap: pricing in this market is set per file, and any published rate would be a headline nobody actually gets. What can be said usefully is what moves the number, and how to compare two offers that quote it differently.
The six things that move an equipment rate
The asset, because a machine with a deep resale market is better security than a bespoke one. Its age, because the facility should not outlive it. Your trading history and your credit file, which are the two numbers the published bars gate on. The deposit, because a larger one reduces the lender's exposure and is the fastest lever a borrower controls. The term, since a longer facility costs more in total even when the monthly figure looks kinder. And whether the seller is a dealer or a private party, because that changes what the lender can recover.
Rate, factor rate and total cost of borrowing
Equipment finance is usually quoted as an interest rate, working capital advances are often quoted as a factor rate, and the two are not comparable as written. A factor of 1.3 means you repay 1.3 times what you borrowed, whenever that happens; the annualised cost of that depends entirely on the term. Convert every offer to two numbers before comparing: the total amount repayable, and the payment per week or month. Those two are comparable across every product on this site, and the quoted rate frequently is not.
What to ask for in writing
The total cost of borrowing, the deposit, the term, the payment and its frequency, any documentation or arrangement fee, the end-of-term position including any buyout, and the early settlement terms. That last one catches people: some agreements charge the full cost however early you settle, which removes the benefit of paying down. A lender that will put all seven in one written schedule is a lender you can compare; one that will only give a monthly payment is asking you to buy on the smallest number.
Questions people ask about equipment loan interest rates
What is a typical equipment loan interest rate?
No lender in this record publishes one, so any typical figure would be somebody's estimate rather than a quoted price. Rates are set per file on the asset, the deposit, the term and your two eligibility numbers, and the only reliable figure is a written quote.
Why do lenders quote a factor rate instead?
Because short working capital facilities repaid daily or weekly do not fit an annual interest calculation neatly. A factor rate states the total multiple repaid; convert it into a total amount and a weekly payment before comparing it with anything quoted as interest.
Does a bigger deposit lower the rate?
Usually, and it is the lever a borrower most directly controls. It reduces the lender's exposure and its loss if the asset has to be sold, and on a marginal file it is often what turns a decline into an approval.