Equipment financing is one of the most underutilized product categories in most MCA-focused brokers' portfolios. Yet equipment deals are often the same size as working capital deals, repeat more frequently (businesses replace and expand equipment regularly), and carry lower default rates because the equipment itself provides collateral security.
Adding equipment financing to your product lineup immediately opens a large segment of clients who need capital but whose primary need is asset-based rather than cash flow-based.
How Equipment Financing Differs From MCA (Broker Perspective)
| Factor | MCA | Equipment Financing |
|---|---|---|
| Collateral | None — unsecured | The equipment itself |
| Approval basis | Cash flow (bank statements) | Equipment value + cash flow |
| Deal size range | $10,000–$500,000 | $5,000–$2M+ |
| Term length | 3–18 months | 24–84 months |
| Credit requirement | 500+ FICO | 550–600+ FICO |
| Commission rate | 3–8% | 2–4% |
| Approval timeline | 24–72 hours | 3–7 business days |
| Repeat frequency | 5–9 months (renewal) | 2–5 years (new asset cycle) |
Which Clients Are Equipment Financing Candidates?
Ask every client: 'Is any of this capital going toward purchasing equipment, vehicles, or machinery?' If yes, equipment financing is likely a better fit than MCA for that portion — lower cost, longer term, and more appropriate structure for depreciating assets.
- Trucking companies buying new or used semi-trucks or trailers
- Construction contractors buying excavators, lifts, or specialty machinery
- HVAC companies adding service vehicles or diagnostic equipment
- Medical practices purchasing imaging equipment or dental chairs
- Restaurants buying commercial kitchen equipment
- Manufacturers purchasing CNC machines, presses, or production equipment
- Cleaning companies buying floor care equipment or cargo vans
Building Equipment Lending Relationships
Equipment lending is a different market from MCA. Equipment lenders underwrite based primarily on:
- The equipment itself — age, type, and marketability as collateral
- The business's time in operation and revenue
- The business owner's credit score (higher weight than in MCA underwriting)
- Down payment — 10–20% down significantly improves terms
Build separate ISO relationships with equipment lenders specifically — they're distinct from your MCA funders. Aim for at least 3–5 equipment lender relationships covering general commercial equipment, transportation, medical equipment, and construction machinery.
The Equipment Financing Application Package
Equipment financing requires more documentation than MCA:
- Credit application (same as MCA)
- 3–6 months business bank statements
- Equipment details: year, make, model, serial number, and condition report or invoice
- Down payment confirmation: proof of available down payment funds
- For used equipment: inspection report or dealer assessment of value
- For large deals ($150K+): 2 years of business tax returns and financial statements
JYNI's Document Box processes equipment application packages just like MCA packages — extract data from PDFs, create company records, and track deal stage all in one place. Equipment deals use the same workflow as your MCA pipeline.
Commission Structure for Equipment Deals
Equipment commissions run 2–4% of the funded amount, which is lower per dollar than MCA commissions. But the larger deal sizes compensate: a 3% commission on a $120,000 equipment deal is $3,600 — competitive with or exceeding a typical MCA commission. And equipment deals repeat more predictably as businesses' equipment needs evolve.
Cross-Selling Equipment Into Your MCA Pipeline
Your existing MCA clients are the best source of equipment deals. Add a question to your renewal conversations: 'Is there any equipment the business needs to grow — vehicles, machinery, or major purchases coming up?' A client who took an MCA for working capital 6 months ago and now needs to buy a truck is a perfect equipment financing candidate — you already know their business and financials.
Bottom Line
Equipment financing is a natural and valuable complement to an MCA-focused brokerage. The underwriting is different, the commission rates are lower per percent but deal sizes are larger, and the repeat cycle is longer but very predictable. Adding 3–5 equipment lender relationships to your network and asking the equipment question on every deal will immediately generate additional revenue from your existing client base.