Estimate Your Equipment Financing
2 minutes. The equipment is your collateral.
600 Credit Score
A credit score of 600 is considered "fair" by most Canadian lenders. While you won't qualify for the lowest rates, many lenders actively work with this credit tier. Your approval odds improve significantly with stable income, low existing debt, and employment history. A co-signer or collateral can unlock better terms.
What This Means for You
With a 600 credit score, you're in a transitional zone — above the "bad credit" threshold but below the "good" tier where the best rates live. This means you have options, but strategy matters enormously. Most Big Five banks will consider applicants at 600, but their auto-approval systems often flag scores below 650, meaning your application may require manual underwriting. This isn't necessarily bad — it means a human reviews your full picture. Alternative lenders and credit unions are often your best bet at this credit level. Credit unions evaluate members more holistically, considering banking history and relationship length. Alternative online lenders have built models specifically for the 580–650 range, offering faster approvals than banks with rates that, while higher than prime, are significantly better than bad-credit lender rates. Your income stability is your biggest lever. A borrower with a 600 score and 3+ years of stable full-time employment will get significantly better terms than someone with the same score and recent job changes.
Your Action Plan
- 1Pull your free credit report from Equifax and TransUnion — check for errors that could be dragging down your score
- 2Pay down credit card balances below 30% utilization before applying — this alone can boost your score 20–40 points in 30 days
- 3Gather 3 months of bank statements and your 2 most recent pay stubs — lenders at this tier want to see income stability
- 4Apply to a credit union where you have an existing relationship first — they often offer the best terms for 600-range scores
- 5Consider a co-signer with good credit — this can move you from 'fair' tier rates (14–20%) to 'good' tier rates (9–14%)
- 6If you're self-employed, prepare your last 2 years of tax returns and 6 months of business bank statements
- 7Don't apply to more than 3 lenders within a 14-day window — multiple inquiries beyond this can further impact your score
Common Questions — 600 Credit Score
From construction equipment to medical devices, restaurant gear to manufacturing machinery, LoanIQ helps you estimate your equipment financing options. Because the equipment itself serves as collateral, approval odds are typically higher and rates lower than unsecured business loans — even for newer businesses.
How It Works
Describe your equipment needs
Type of equipment, new or used, and estimated cost.
Share your business profile
Time in business, revenue, and credit range. Under 2 minutes.
Review your estimate
Estimated approval odds, rate band, monthly payment, and lease vs. buy comparison.
Connect with equipment lenders
Apply to lenders who specialize in your equipment type.
Equipment Financing Approval Factors
Equipment type and condition affect loan-to-value ratios and available terms
Time in business matters — 1+ year is ideal, but some lenders finance startups
Business revenue demonstrates your ability to service the loan payments
Personal credit score of the business owner is still considered
Down payment or trade-in reduces risk and can improve your rate
Estimated Rate Bands
| Credit Tier | Estimated Rate Range | Approval Likelihood |
|---|---|---|
| Established (3+ years, 700+ credit) | 6.99% – 12.99% | Very High |
| Growing (2+ years, 650+ credit) | 9.99% – 18.99% | High |
| Early Stage (1-2 years, 600+ credit) | 14.99% – 24.99% | Moderate |
| Startup (Under 1 year) | 18.99% – 29.99% | Moderate-Low |
* Rates are estimates based on typical lender criteria. Your actual rate may vary. These are not offers.
Getting the Best Equipment Financing Terms
New equipment often qualifies for better rates and longer terms than used — manufacturer financing programs can be very competitive.
A down payment of 10-20% significantly improves your rate and approval odds. Trade-ins count as down payment value.
Consider leasing vs. buying: leasing preserves capital and may offer tax advantages, while purchasing builds equity in the asset.
Frequently Asked Questions
Why Trust LoanIQ
Equipment serves as its own collateral
New and used equipment financing
Competitive rates from 6.99%
No credit check for estimates
Plan With Our Free Calculators
Estimate payments, compare options, check affordability
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Estimate Your Equipment Financing
2 minutes. The equipment is your collateral.