Quick answer: To add equipment financing, ask every client whether any capital is going toward equipment, vehicles, or machinery — if so, it's usually a better fit than MCA. Build 3–5 dedicated equipment lender relationships separate from your MCA funders, collect a fuller application package, and expect 2–4% commissions offset by larger deal sizes and a predictable 2–5 year repeat cycle.
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.
A Worked Example: A $120,000 Equipment Deal
Run the numbers on a typical deal. A construction client needs a $120,000 excavator. The equipment lender uses the machine as collateral, asks for 10 to 20% down ($12,000–$24,000), and finances the balance over 60 months. At a 3% commission, you earn about $3,600 on the deal — competitive with an MCA commission, on a product the client is far happier to take because it is cheaper and matched to a long-lived asset. Better still, the client's other equipment needs over the next few years become repeat deals you are positioned to win, since you financed the first one.
Loan vs Lease: What Brokers Should Know
Equipment can be financed as a loan (the client owns the asset and builds equity) or a lease (lower payments, with options to buy out, return, or upgrade at the end). Each fits different clients: a contractor who will run a machine for a decade usually wants to own it, while a business that upgrades technology frequently may prefer a lease. Tax treatment differs too, so clients often check with their accountant. Knowing both structures lets you present the right one instead of forcing every deal into a loan — the equipment financing vs leasing comparison breaks down when each wins.
New vs Used Equipment Underwriting
The collateral's age shapes the deal. New equipment gets the best rates and longest terms because its value and resale market are predictable. Used equipment still finances well — often the smart buy for a growing business — but lenders look harder at age, hours or mileage, condition, and marketability, and may require an inspection or appraisal for larger or older units. The broker edge is knowing which lenders are comfortable with used and specialty equipment, because a client buying a 7-year-old machine needs a funder who will underwrite it, not a generalist who only wants new.
The Vendor and Dealer Referral Channel
Equipment financing comes with a lead source MCA does not: the dealers and vendors who sell the equipment. A dealer who can offer financing closes more sales, so equipment dealers, truck lots, and machinery vendors are natural referral partners — you help their customers get funded, they send you a steady stream of buyers who already have a defined need and a price. Building two or three dealer relationships in your target vertical can produce more qualified equipment deals than cold outreach ever will, and the deals arrive pre-qualified by an actual purchase decision.
Tax Timing as a Closing Lever
Equipment deals have a seasonal urgency working capital does not: tax incentives like Section 179 let businesses deduct qualifying equipment purchases, which creates a real reason to close before year-end. A broker who understands this can reach out in Q4 with a genuine, timely message — 'if you've been planning to buy that machine, financing it before December 31 may let you write it off this year' — that is helpful rather than salesy. Always tell clients to confirm specifics with their accountant, but tax timing is a legitimate and effective reason to move a deal now.
Why Equipment Deals Are the Easiest Repeat Business
Equipment financing rewards patience in a way MCA does not. Businesses replace and add equipment on predictable cycles — a truck every few years, a machine as the shop grows — so a client you fund once becomes a known, financeable buyer for the next purchase and the one after that. Add a simple equipment question to every renewal conversation, track the asset and its expected replacement window in your CRM, and reach out before the next purchase. Over a few years, a book of equipment clients turns into one of the most predictable, lowest-effort deal sources in your business.
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.
Frequently Asked Questions
How does equipment financing differ from an MCA?
Equipment financing is secured by the equipment itself, approved on equipment value plus cash flow, runs $5,000–$2M+ over 24–84 month terms, needs 550–600+ FICO, pays 2–4% commission, and funds in 3–7 business days — versus unsecured MCA's cash-flow basis, shorter terms, and 3–8% commission.
Which clients are equipment financing candidates?
Trucking companies buying trucks or trailers, construction contractors buying machinery, HVAC firms adding service vehicles, medical practices buying imaging equipment, restaurants buying kitchen equipment, manufacturers buying CNC machines, and cleaning companies buying floor care equipment or vans.
What's in an equipment financing application package?
A credit application, 3–6 months of business bank statements, equipment details (year, make, model, serial number, condition or invoice), down payment confirmation, an inspection report for used equipment, and 2 years of tax returns and financials for deals over $150K.
What commission do equipment deals pay?
Equipment commissions run 2–4% of the funded amount — lower per dollar than MCA, but larger deal sizes compensate. A 3% commission on a $120,000 equipment deal is $3,600, competitive with or exceeding a typical MCA commission.
How do I cross-sell equipment into my MCA pipeline?
Your existing MCA clients are the best source — add a question to renewal conversations asking whether the business needs any vehicles, machinery, or major purchases coming up, since you already know their business and financials.