Equipment Loans in Texas
An equipment loan is a secured term loan used to purchase business equipment, with the equipment itself serving as collateral. The borrower owns the equipment at signing, makes fixed payments over the loan term, and owns the asset outright at payoff. Equipment loans are available from banks, non-bank lenders, and equipment finance companies across Texas.
- Typical deal size: $50,000 to $5,000,000
- Collateral: the equipment being financed (first lien)
- Typical term: 36 to 84 months
- Down payment: 10–20% typical; 100% financing available for strong borrowers
- Rates: fixed or floating; fixed-rate loans are more common for equipment under $500,000
Overview
An equipment loan is the most straightforward equipment financing structure: the lender advances funds to purchase equipment, takes a first lien on that equipment as collateral, and the borrower repays principal and interest over a fixed term. Ownership transfers to the borrower at signing, not at payoff.
This ownership feature distinguishes equipment loans from equipment leases. For businesses that plan to use the equipment for its full useful life, or who want to build equity in a depreciable asset, loans are generally preferable to leases. For businesses that rotate equipment frequently or want to preserve balance sheet flexibility, leases may be the better structure.
In Texas, equipment loan lenders span the full spectrum: large banks (which typically handle larger deals and require stronger financial profiles), regional and community banks (which are often willing to work with longer-tenured local businesses on mid-sized deals), and non-bank equipment finance companies (which move faster and work with younger businesses, at higher rates).
The key qualifying factors for equipment loans are: the type and resale value of the equipment, the borrower's credit profile, time in business, and annual revenue. Equipment that is purpose-built for a single industry or that depreciates rapidly is harder to finance at full value — the lender's recovery on foreclosure depends on being able to resell it.
For Texas businesses in energy services, agriculture, and construction — industries with specialized, high-value equipment — lenders who understand those specific markets will underwrite more accurately than generalist lenders applying national templates.
Verified Lenders
This category is being populated.
Lenders are added as they pass The Registry Standard verification. Check back or use the Get Matched form to describe your situation directly.
Frequently Asked Questions
What types of equipment qualify for equipment loans in Texas?
Most tangible business equipment qualifies: commercial vehicles, construction and agricultural equipment, manufacturing machinery, restaurant and kitchen equipment, medical and dental equipment, and technology hardware. Equipment must be identified before closing — most lenders do not advance funds before the purchase is specified.
Can a startup use an equipment loan?
Most equipment loan lenders require at least 1–2 years of business operating history. Startups with strong personal credit and a 20–30% down payment may qualify with some non-bank lenders. SBA equipment loans require 2+ years in most cases.
Is an equipment loan or an equipment lease better for my business?
A loan is better if you plan to use the equipment for its full useful life and want to own it outright. A lease is better if you prefer lower monthly payments, plan to upgrade the equipment regularly, or want to keep the asset off your balance sheet. The tax treatment differs between the two — consult your accountant before choosing.
How quickly can an equipment loan close in Texas?
Non-bank equipment finance companies can often close small deals (under $150,000) in 3–5 business days. Bank equipment loans typically take 2–4 weeks. Larger deals involving formal appraisals and more complex credit packages take longer regardless of lender type.
Related Categories
Page last updated: August 2026