Who Finances What? The Industry Guide to Equipment Lending

Different industries have unique financing needs, and your best option will depend on your priorities. Here’s a quick breakdown:

Banks typically offer the lowest interest rates, but they also come with the most paperwork and longest processing times—often several weeks. These are best for well-established businesses with strong financials that can afford to wait.

Captive financing—offered by equipment manufacturers themselves (like John Deere or Caterpillar)—can offer promotional rates and simplified approvals, but usually require excellent credit and are limited to that brand’s equipment.

Specialty finance lenders offer speed and flexibility, often approving deals in a matter of days, with more tolerance for newer businesses or imperfect credit. While rates may be slightly higher, they’re designed to move fast and support a broader range of borrowers.

This guide highlights several well-known equipment finance providers by industry, but it’s by no means exhaustive. Many regional, niche, and emerging lenders may be a better fit depending on your credit profile, equipment type, or financing need.

🚧 Construction and Heavy Equipment

Construction businesses often face seasonality and cyclical project pipelines. Lenders will closely evaluate your current contracts, backlog, and overall financial stability.

🍴 Restaurants and Food Service

Restaurants are typically seen as higher-risk due to their higher failure rates. Expect lenders to scrutinize your cash flow, historical performance, and competitive landscape.

🩺 Medical and Dental Practices

Medical and dental practices are generally considered low-risk borrowers due to stable revenue streams and consistent demand. Attractive terms and lower rates are often available.

🏭 Manufacturing and Industrial

Manufacturing companies need to demonstrate consistent order flow, inventory management, and capacity utilization. Lenders prefer clearly defined ROI on financed equipment.

🚛 Transportation and Trucking

Trucking firms will be assessed based on fleet age, route stability, and historical operational efficiency. Reliable contracts and fuel management practices improve financing prospects. Smaller, less established transportation businesses will have a more difficult time securing approvals and favorable terms due to tight margins, vulnerability to economic fluctuations, and a high industry failure rate.

💻 Technology and Office Equipment

Technology financing decisions focus on rapid asset depreciation and obsolescence risk. Strong credit and shorter terms are common for financing tech and office equipment.

🛒 Retail and POS Systems

Retail businesses must clearly demonstrate consistent cash flow and resilience against economic downturns. Lenders may look for proven locations and stable foot traffic.

🔋 Renewable Energy and Sustainability

Renewable energy projects require lenders to understand energy generation projections, government incentives, and long-term sustainability of the project.

⚙️ Need Help Choosing?

Diogenes quickly matches you with the right lenders for your specific industry and equipment needs.

Next in the series: When Equipment Financing Isn’t the Right Move