Can I get equipment financing with bad credit (under 620) for a fab shop in 2026?

Yes, a metal fabrication shop with a credit score below 620 can still get equipment financing in 2026 — just not from a traditional bank. Banks and SBA lenders generally want scores of 650-680 or higher, but alternative and asset-based lenders will approve scores as low as 500, because the machine itself secures the loan.

The trade-off is cost. Below-620 borrowers should plan on a larger down payment and a higher rate than the fair, good, or excellent tiers pay. A 580-score borrower may see rates ranging from 12-30% APR or higher, versus the single-digit APRs available to strong-credit shops. This page is specifically about the sub-620 band — if your score is higher, you'll qualify on materially better terms.

Why equipment financing still works at sub-620

Equipment financing is asset-backed: the press brake, fiber laser, or CNC center you're buying serves as collateral. As NerdWallet puts it, because the equipment serves as collateral, lenders can be more flexible on eligibility and you don't have to lean as heavily on personal credit history. Specialty fabrication lenders go further — they understand the strong resale value of name-brand machinery, so a well-chosen machine can offset a weak FICO.

Note that under FICO's own bands, 580-669 is labeled "Fair" and only below 580 is "Poor." Lenders, however, treat 620 as a practical underwriting cutoff, which is why sub-620 applicants face the asset-based, higher-cost path described here.

What sub-620 borrowers should expect

• Larger down payment. Equipment lenders may require up to 20% down, and many require 10-20% when your score is below 620. Offering more cash up front improves your approval odds and trims the rate.
• Higher rate. Budget for the 12-30% APR range rather than prime-tracking pricing.
• Revenue proof. Most alternative lenders want roughly $10,000-$15,000 per month in gross revenue and 6-12 months of operating history.
• Strong collateral. A late-model, brand-name machine from a reputable dealer is far easier to fund than niche or heavily used gear.

How to improve your odds

Put more money down, choose equipment with proven secondary-market value, and bring clean bank statements plus the vendor invoice. The SBA route stays open later: a 504 loan can fund machinery with a useful remaining life of at least 10 years, but it carries stricter credit and documentation standards, so it's usually a fit once your score recovers above the lender's threshold. If you can wait a few months to push your score past 620, you'll unlock noticeably better terms.

For the full underwriting playbook, see our bad-credit equipment financing guide and the deeper CNC bad-credit guide. To see how each tier prices out, compare the down-payment requirements for your situation.

Sources

• Equipment Financing with Bad Credit — Crestmont Capital
• Best Equipment Loans for Bad Credit — NerdWallet
• What is a Credit Score? — myFICO
• 504 Loans — U.S. Small Business Administration