Business Equipment Loan Requirements: What Credit Unions Look For

Business Equipment Loan - Clark County Credit Union

Quick Answer: To qualify for a business equipment loan, credit unions typically review your credit score, business history, cash flow, and the equipment’s value. CCCU offers flexible options for Las Vegas business owners.

From digital X-ray machines for dental offices to heavy machinery for contractors or advanced diagnostic tools for medical clinics—specialized equipment is often critical to running a successful business. A business equipment loan can help you afford these high-cost items without tapping into your day-to-day operating funds. But what exactly do credit unions look for when you apply?

1. Strong Credit History

Both personal and business credit scores matter. Credit unions like CCCU typically look for a good-to-excellent credit rating (usually 680+), which shows lenders that you manage debt responsibly. However, don’t worry if your score isn’t perfect — other factors can balance it out.

The U.S. Small Business Administration (SBA) offers a helpful resource on how to build and manage business credit. You can read the full article here.

2. Business Longevity and Stability

Established businesses often find it easier to qualify, especially if you’ve been operating for two years or more. If you're a newer practice or firm, be prepared to show strong growth potential, business plans, or investor backing.

First time writing a business plan? The SBA provides a helpful guide on how to create one.

3. Cash Flow and Financial Statements

A solid cash flow shows lenders you can afford monthly payments. Expect to provide recent bank statements, balance sheets, and profit-and-loss reports. This is especially important for medical and dental practices where reimbursements and billing cycles affect cash flow timing.

4. Equipment Details and Use

The equipment you’re financing plays a big role in the approval process. Lenders want to know:

  • What are you purchasing?
  • How essential is it to the business’ operations?
  • What is the expected lifespan and resale value?

5. Down Payment or Collateral

In many cases, the equipment itself serves as collateral. However, having a down payment — even 10-20 percent— can increase approval chances and reduce your total loan cost.

For a more detailed breakdown, be sure to check out our blog: A Quick Guide to Securing a Business Loan for Equipment

Why Choose a Credit Union like CCCU?

Credit unions like CCCU offer more personalized service and competitive rates tailored to local Las Vegas businesses. Plus, you work directly with people who understand your industry and community needs. Ready to upgrade your equipment and grow your practice or business? Speak to CCCU’s commercial team and learn about tailored business equipment loan options.