The interest rate on an equipment loan generally varies from 2% to 20% and depends largely on your credit score, business revenue, how long you’ve been in business, the state of the equipment, and down payment.
The equipment cost also affects the interest rate as less expensive equipment tend to have higher rates.
A low credit score often attracts higher interest rates!
The equipment can be taken as collateral especially for heavier equipment that has a longer useful life. Otherwise, a down payment may be required.
