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Compare · 2026

Equipment Financing vs Leasing for Contractors

Buy it or lease it? Here's how financing and leasing compare for construction equipment.

Short answer: Finance equipment you'll keep for years — you build ownership and the payments end. Lease equipment you rotate often or that dates quickly — lower monthly cost and easier upgrades, but you don't own it. For core machines a contractor runs for the long haul, financing usually wins; for specialized or short-cycle gear, leasing can.

Reviewed by the Funded Contractor Capital Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

Financing vs leasing

How the two compare for construction equipment.

CriteriaFinancingLeasing
OwnershipYou own it at payoffLender owns it
Monthly costHigherLower
Best forMachines you keep for yearsGear you rotate or upgrade
End of termIt's yoursReturn, renew, or buy out
CollateralThe equipment itselfThe equipment itself
CreditFICO 500+FICO 500+

Why contractors fund with us

  • One application shows you every option you qualify for
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • We recommend the lowest-cost fit, not the priciest
  • Fixed payments or revenue-share — your choice
  • No tax returns — 3 months of bank statements

What you need to apply

  • US-based contracting business
  • 6+ months in business
  • ~$30,000+ in monthly revenue
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Is it better to finance or lease construction equipment?
Finance equipment you'll keep long-term to build ownership; lease equipment you rotate often or that becomes outdated quickly. Both accept FICO 500+.
Can I buy the equipment at the end of a lease?
Often yes — many leases include a buyout option at the end of the term.
Which option can I get fastest?
Most of these fund within 24 hours of approval. The application takes about 5 minutes with a soft credit pull that doesn't affect your score.
Can I qualify with bad credit?
Yes — FICO 500+ can qualify, because approval is weighted toward revenue and bank-deposit consistency rather than credit score.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

Finance or lease your equipment

Apply in 5 minutes with a soft credit pull.

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.