How long does it take to get an equipment financing approval?
When business owners need equipment, it is usually a fairly immediate need. Maybe a piece of equipment broke down and would be too expensive to fix again. Maybe you signed a new job contract and you need equipment quickly to meet your job timeline. The last thing you want to happen is a delay in getting the equipment.
One thing that can slow down the equipment finance process is the underwriting review. Big banks can take anywhere from several days to several weeks to issue an approval decision, depending on the amount that needs to be financed – small community banks & credit unions can sometimes take even longer.
Through private equipment financing, we sometimes get an approval update for our business owner clients in as quickly as 1 hour (typically within 1 business day overall). Private finance companies are built for speed, typically require less paperwork than a bank or credit union, and usually are more flexible with credit requirements compared to banks & credit unions.
A lot of business owners feel that they are at the mercy of the underwriting process and just have to wait for a finance approval answer to come back, but that should not be the case. We always recommend that clients be proactive and follow up with their finance rep. If you are applying for equipment financing through a private broker or private lender, you should always ask upfront: “How long does the approval process typically take?”
If they won’t give you a straight answer or they tell you that it will take several days to get an approval update, then you might want to look for more reliable options.
Bottom Line: Ask upfront how quickly you should expect an approval decision—and don’t be afraid to follow up with your finance rep if that timeframe passes.
The fastest way to accelerate an equipment financing approval is to have your equipment invoice ready before you apply, and make sure that the equipment invoice is dated within the last 30 days. Most underwriters won’t accept equipment invoices for review if the invoice is older than 30 days.
While premium credit tiers typically secure the lowest rates, obtaining an equipment financing approval is often much more flexible than a traditional bank loan. Because the commercial machinery, vehicle, or specialized technology serves as the primary collateral for the transaction, private underwriters can often look past strict bank guidelines to build a custom structure based on your business history.
Financing newer machinery or vehicles typically results in a faster underwriting process because their market value is straightforward to verify. However, specialized or older items can still often secure an approval if you provide clear maintenance records and verified vendor details to help the underwriting team confirm the asset’s current working condition. Keep in mind though that the finance process for used equipment typically takes longer than the process for new equipment – it could add several days or longer to the financing schedule if you are financing used equipment.
Ready to Finance Your Next Piece of Equipment?
At EFS – Equipment Finance Specialists, we believe equipment financing should be transparent, straightforward, and built around your business—not hidden fees and confusing terms.
When you’re ready to finance your next piece of equipment, we’d love the opportunity to earn your business and show you how we believe equipment financing should be done. Or if you just have general questions about equipment financing, feel free to call, text, or email us and we will be happy to answer any of your questions.
EFS – Equipment Finance Specialists
(512) 888-5721 | efsequip.com I admin@efsequip.com
Equipment Financing Nationwide | $15,000–$2 Million
Approval Updates Typically Within 1 Business Day