Average equipment loan interest rate: what the data can show

This report covers the closest published data to the question of what an equipment loan costs: borrowing costs against expectations, approval outcomes, collateral and bank approval speed. Every number is quoted from a named public source. None of those sources reports an equipment loan rate.

Does any source publish an average equipment loan interest rate? #

No. The Federal Reserve Banks' 2025 Small Business Credit Survey and the FDIC's 2024 Small Business Lending Survey Report do not report an average rate for equipment loans, SBA loans or any other product. The SBCS does report that high interest rates and unfavorable repayment terms were the most common challenges among applicants at online lenders. It states no rate behind that finding.

How often do borrowing costs come in higher than expected? #

Among approved applicants who accepted financing, 60% of those who borrowed from online lenders said actual costs were higher than expected, and 4% said lower. Borrowers at small banks (37%) and large banks (32%) were less likely to report higher-than-expected costs. The survey measures surprise relative to expectation, not the cost itself.

How many applicants get the full amount they ask for? #

Across all applicants for financing in the 12 months before the survey, 42% received the full amount sought, 36% received some or most, and 22% received none. By lender type, applicants at small banks were more likely to be fully approved (57%) than applicants at other lenders. The 38% of firms that applied for a loan, line of credit, or merchant cash advance is nearly unchanged from the 2024 survey.

How fast do banks approve small loans? #

The FDIC survey, conducted in 2022, found that three-in-ten banks, including more than half of large banks, can approve a small and simple loan within one business day. Three-in-four banks can do so within five business days. The survey says approval times are fast, especially for small loans at large banks. It reports speed only for banks, so it supports no comparison with other lender types.

What do firms pledge, and where do they apply? #

Of firms with debt, 59% used a personal guarantee to secure it and 51% used business assets. Applicants most often sought financing at large banks, followed by online lenders and small banks. The share seeking financing at online fintech lenders rose from 17% in the 2020 survey to 29% in the 2025 survey.

For a business that qualifies for a bank loan, the survey figures show fewer cost surprises there than at online lenders. For a business that does not qualify at a bank, the sources do not say what any alternative costs.

What this report does not measure #

None of these sources measures an equipment loan rate or APR for any term. That includes the 5-, 7- and 10-year terms that loan calculators use, as well as SBA equipment loan rates, personal-use equipment financing and merchant cash advance pricing. The SBCS groups loans, lines of credit and cash advances together, so its figures cannot be split out for equipment loans. It is also a convenience sample. The FDIC figures describe bank practices as of 2022, not prices. A reader who needs a rate should ask lenders for a written APR on the specific equipment, term and down payment.

@techreport{hadleycommercialcreditreview2026averageequipmentloaninte,
  title        = {Average equipment loan interest rate: what the data can show},
  author       = {{Hadley Commercial Credit Review}},
  institution  = {Hadley Commercial Credit Review},
  year         = {2026},
  month        = {nov},
  url          = {https://hadleycommercialcreditreview.com/reports/average-equipment-loan-interest-rate-what-the-data-can-show},
  note         = {Covers 2025 SBCS; 2022 FDIC survey; PDF edition: https://hadleycommercialcreditreview.com/reports/average-equipment-loan-interest-rate-what-the-data-can-show.pdf}
}