How Commercial Equipment Financing Works — Step by Step
A complete walkthrough of the commercial equipment financing process — from application to funding. Learn what to expect, what documents you need, and how LeaseSource gets deals done in 24 hours.
Commercial equipment financing sounds complicated — but the process is straightforward when you know what to expect. Here's exactly how it works, from the moment you decide you need equipment to the day it's funded and in your hands.
Submit Your Application
The process starts with a simple application — business name, equipment type, amount needed, and basic financial information. LeaseSource's application takes about 5 minutes. Unlike bank loan applications, you don't need to submit full tax returns or audited financials upfront. For transactions under $150,000, a one-page application is often all that's needed.
Credit Review & Lender Matching
Once your application is submitted, LeaseSource reviews your credit profile and matches your transaction to the right lender from our network of 25+ funding sources. This is where working with a broker like LeaseSource pays off: we know which lenders specialize in your industry, your equipment type, and your credit profile. A bank sees one set of criteria. We see 25.
Approval Decision
For most transactions, you'll receive an approval decision within 24 hours. The approval will specify the approved amount, term, rate, and any conditions (such as a personal guarantee or additional documentation). For larger transactions or complex credit situations, the review may take 2–3 business days.
Documentation
Once approved, you'll receive a lease or loan agreement to review and sign. For equipment already identified, you'll also provide a vendor invoice or purchase agreement. LeaseSource handles the paperwork — you review, sign, and return. Most documentation can be completed electronically.
Funding
After documents are signed and any conditions are met, LeaseSource funds the transaction — typically within 1–3 business days. For equipment purchases, we pay the vendor directly. For sale-leaseback transactions, funds go directly to you. From application to funding, most LeaseSource transactions close in 3–7 business days.
What Documents Do You Need?
Requirements vary by transaction size and credit profile, but here's what most applicants need:
Under $150,000
- One-page application
- Equipment invoice or quote
- Personal guarantee (typically)
$150,000–$500,000
- Application
- Last 2 years business tax returns
- Last 3 months bank statements
- Equipment invoice
Over $500,000
- Full application
- Last 2–3 years tax returns
- Current financial statements
- Business plan (if startup)
- Equipment specs and vendor info
Startups (under 2 years)
- Application
- Personal tax returns (2 years)
- Personal financial statement
- Business plan
- Equipment invoice
Common Questions
Do I need to have the equipment identified before applying?
No. You can apply for pre-approval before you've selected specific equipment. Pre-approval tells you how much you qualify for and at what rate, so you can shop with confidence.
Does applying hurt my credit score?
LeaseSource performs a soft pull for initial qualification, which does not affect your credit score. A hard pull is only done when you proceed to formal approval.
Can I finance used equipment?
Yes. LeaseSource finances new and used equipment. For used equipment, we'll need the age, condition, and appraised or purchase value. Some lenders have age restrictions (typically no more than 10–15 years old at end of term).
What if I've been turned down by a bank?
Bank declines are common — banks have rigid criteria and limited appetite for equipment financing. LeaseSource works with 25+ lenders, including specialty lenders who focus on credit-challenged businesses, startups, and industries banks avoid.
Ready to start? It takes 5 minutes.
- Simple online application — no tax returns required under $150K
- Decision in 24 hours from our network of 25+ lenders
- Funding in 3–7 business days
- No obligation to accept — review terms before you commit
- 30+ years helping businesses get the equipment they need