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Page written by Chris Godfrey. Last reviewed on January 29, 2025. Next review due October 1, 2026.
Factories, warehouses, airports, seaports, logistics centers and more – in many types of location you’ll see specialized machinery keeping business humming. Material handling equipment is designed to move all kind of goods and materials from A to B, but for smart business owners, these expensive machines all have one thing in common: The best way to buy them is with an equipment lease or loan.
Material handling equipment finance is a form of equipment financing, Suitable for businesses in many different industries – manufacturing, agriculture, food processing, construction, logistics and more – this type of financing allows companies to acquire specialist machinery without making a major dent in cash reserves. By spreading the cost of expensive machinery over time, material handling equipment finance helps businesses preserve working capital and better manage their cash flow while ensuring access to essential machinery.
If it’s used to move goods and materials from one place to another, you can almost certainly finance it with a material handling equipment loan. Finance machinery as varied as:
Yes, although some lenders may place restrictions on the types of used materials handling equipment you can finance and may also set a limit on the number of operating hours the machine has worked.
Depending on the type of loan you are seeking, material handling equipment finance can be complicated. The sum you can borrow, the interest rate you’ll pay and other terms and conditions will vary from one lender to another. It therefore makes sense to shop around before settling on a deal. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will immediately introduce you to a choice of financing offers from a range of lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for borrowers who have never taken out an equipment loan before.
Although every lender will have their own qualifying requirements, borrowers will usually need the following to obtain a material handling equipment loan:
Yes. Although it’s never easy to obtain business loans with less-than-stellar credit, it’s not impossible. Three options to consider:
Lastly, if you lack collateral and cannot bring in a co-signer, you may be able to obtain funding from lenders who specialize in loans for borrowers with bad credit. However, be aware that this type of borrowing is usually more costly than regular business lending and the sums you may be able to borrow will often be much smaller.
Just because you can’t qualify for standard equipment finance, it doesn’t mean you can’t obtain funding for your business. Alternative financing options include:
Available from lenders who are part of the US Small Business Administration lender network, SBA microloans can be obtained up to $50,000 in value. Designed for organizations that have difficulty accessing traditional business finance, SBA microloans typically come with more relaxed qualifying rules and can be obtained with FICO scores as low as 500, or even with no credit score at all.
Business grants are free money, they do not have to be repaid if you spend them properly and in most cases, funders do not consider credit scores when considering applications. The good news is, there are thousands of grants available across the US and they are provided by federal, state and local governments as well as foundations, non-profits and other organizations. The downside to this route is the fact that small business grants are usually highly competitive, slow to fund and often come with strict qualifying rules.
No matter if you’re seeking your first material handling equipment loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for funding. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality equipment financing from a choice of lenders. Let us carry the load for you. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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