Five West finances dental equipment at 7% to 9% for A credit, 9% to 12% for B credit, and 12% to 18%+ for C credit, on terms of 24 to 84 months, with 10 years on select programs, from $20,000 to $5 million+.
Across the wider market, dental equipment loans run roughly 7% to 20% APR depending on credit tier and lender type. The benchmark Wall Street Journal prime rate is 6.75%, and because no commercial funder prices below its own cost of money, prime is a practical floor rather than a starting point.
Five West programs at a glance
Published market ranges are not quotes, and the only way to know where you actually price is to have someone put your file in front of the right funder. That is what we do: one application across our programs, compared on total cost of contract rather than headline rate.
- Rates
- 7% to 9% A credit · 9% to 12% B · 12% to 18%+ C
- Terms
- 24 to 84 months, with 10 years on select programs
- Amounts
- $20,000 to $5 million+
- Application only
- Up to $500,000 with no tax returns or financial statements
- Credit
- Established businesses from 600+, startups from 700+
- Equipment
- New, used, refurbished, dealer, and private-party purchases
- Speed
- Same-day options on qualified files, with approvals in as little as a few hours
- Coverage
- Nationwide, U.S. territories, and cross-border
Send us the equipment quote and we will come back with a real number, usually the same day.
Free consultation, no obligation. All financing is subject to credit approval and underwriting; rates and terms depend on the complete business and credit profile.
Five West dental equipment financing rates
Dentistry prices well. The sector carries some of the lowest default rates in commercial lending, and our programs reflect that:
Subject to credit approval and underwriting. Rate depends on the complete business and credit profile.
Two things are worth knowing before you compare that against anything else. We write application-only up to $500,000 with no tax returns and no financial statements, which covers essentially every dental equipment purchase. And our credit floor is 600+ for an established practice and 700+ for a startup, meaningfully below where most banks stop.
How the wider market prices dental equipment
These are published market ranges as of August 2026 for equipment financing, with the tiers that apply to a dental practice borrower:
- 760+ FICO (excellent): 7.0% to 11.0% APR. Approval rates around 95%. Access to bank pricing at the low end of the band. Nothing prices below prime except a manufacturer promotion on one specific new unit.
- 700–759 FICO (good): 9.0% to 14.0% APR. Approval rates around 85%. Most established practices land here. Still eligible for conventional bank programs, usually a point or two above best pricing.
- 640–699 FICO (fair): 13.0% to 20.0% APR. Approval rates around 65%. Banks become difficult; specialty equipment lenders are the practical route. Expect a larger down payment.
- Below 640 FICO (challenged): 18.0% to 30.0%+ APR. Approval rates around 40%. Achievable with strong collateral, meaningful money down, or a co-guarantor, but the payment math needs scrutiny.
Ranges reflect published equipment-finance benchmarks as of August 2026 and are illustrative, not quotes. Dental practices generally price toward the favorable end of each band because the sector carries historically low default rates.
Rates by lender type
Why you are still seeing 5% and 6% online
Because a lot of what ranks was written in a different rate environment and never updated.
Equipment financing content published in 2020 and 2021 quoted rates that were accurate at the time, when the federal funds rate sat near zero and prime was 3.25%. A 5% equipment loan was real then. Much of that material is still live, still undated, and still ranking, which is why a search today surfaces numbers no funder will actually write.
Prime is 6.75% as of August 2026, and a commercial funder cannot lend below its own cost of money and stay in business. So when you see a 5% or 6% equipment rate, check the publication date before you anchor on it. If the page really is current, ask what is attached to the number: a manufacturer promotion on one specific new unit, a captive subsidy paired with a service contract, or a lease payment factor that is not the whole cost of the contract.
Our own A-credit programs start at 7%, and that is not us pricing above the market. That is the market.
Prime is the practical floor
The Wall Street Journal prime rate is 6.75% as of August 2026, unchanged since December 2025 and sitting on a federal funds target range of 3.50% to 3.75%. Commercial equipment finance prices above a funder's own cost of money. That makes prime the realistic floor rather than a starting point. A quote opening with a 5 generally means one of three things: a manufacturer promotion on one specific new unit, a captive subsidy paired with a service contract, or a payment factor that is not the whole cost of the contract.
Treat any number below prime as a signal to ask what else is attached to it.
Where prime shows up directly in a quote:
- SBA 7(a) loans are capped at prime plus a spread that varies by loan size: prime + 3% variable on loans over $250,000 (9.75% today), up to prime + 6.5% on loans of $50,000 or less (13.25%).
- Business lines of credit commonly price at prime + 1% to 3%, or roughly 7.75% to 9.75% for a strong practice.
- Fixed-rate equipment loans are not indexed to prime, but lenders price off their own cost of funds, which moves with the same underlying rates. When prime falls, fixed equipment pricing generally follows with a lag.
Seven factors that move your rate
- Personal credit score. The single largest driver across every lender type. The gap between a 760 and a 690 file is commonly 5 to 8 points.
- Time in business. Two years is the conventional threshold. Startups and first-time owners price higher regardless of personal credit.
- Deal size. Fixed origination costs are spread over a larger balance, so a $250,000 transaction usually prices better than a $35,000 one.
- Term length. Longer terms carry more risk and usually a slightly higher rate, though they lower the monthly payment.
- New vs. used equipment. Used typically adds 1 to 3 points, and private-party purchases add more than dealer purchases.
- Collateral quality. Chairs, cabinetry, and compressors hold value and price better than fast-depreciating digital technology.
- Down payment. Money down reduces the lender's exposure and is one of the few levers you fully control.
What one point of rate actually costs
Rate differences feel abstract until you price them. Here is a $120,000 dental equipment loan over 60 months:
One percentage point on $120,000 over five years costs about $58 a month, or roughly $3,470 across the term. Worth negotiating, though not worth losing a tax year over. If a two-week delay pushes your equipment past December 31, the Section 179 deduction you defer is typically worth several times the rate savings.
Why the lowest rate is not always the cheapest deal
Three things routinely make a higher-rate offer the better one:
- Prepayment penalties. An 8% loan with three years of lockout costs more than a 9.5% loan you can retire early if you sell the practice or refinance.
- Blanket liens. A bank taking a general lien on all practice assets constrains your next transaction. An equipment-only lien leaves the rest of the balance sheet clean.
- Fees and end-of-term obligations. Documentation fees, origination points, and lease buyout obligations do not show up in the rate. Compare total cost of the contract, which is every payment plus every fee, rather than APR alone.
How to get to the lower end of the range
- Protect your personal FICO in the months before you apply. Pay down revolving balances and avoid new consumer credit.
- Submit a complete file. Underwriters price uncertainty. A clean, complete package with anomalies explained up front prices better than the same credit with gaps.
- Put money down. Even 10% meaningfully changes exposure on a marginal file.
- Match term to asset life rather than stretching for the lowest payment.
- Get two or three quotes, not six. A cluster of hard inquiries works against you.
- Bundle purchases. One $180,000 transaction typically prices better than three separate $60,000 ones.
- Ask about the captive promotion if you are buying a specific manufacturer's package, but price the equipment independently first.
Loan or lease?
FMV operating leases carry an effective rate of roughly 7% to 11% embedded in the payment. They are frequently the better structure for CBCT, intraoral scanners, and CAD/CAM, where you expect to upgrade in four to six years. But because the lessor owns the asset, the payments are deducted as an operating expense rather than qualifying for Section 179. A $1 buyout lease or a straight equipment loan is treated as ownership and does qualify. For chairs, cabinetry, and compressors that you will own for a decade, ownership structures generally win.
The bottom line
Expect 7% to 11% with excellent credit, 9% to 14% with good credit, and 13% to 20% in the fair range, against a 6.75% prime rate as of August 2026. Dental borrowers generally price at the favorable end of each band. Negotiate the rate, but weigh it against prepayment terms, lien position, and total contract cost. Near year end, factor in the value of getting the equipment placed in service on time.
Five West prices A credit at 7% to 9%, B at 9% to 12%, and C at 12% to 18%+, on terms of 24 to 84 months, with 10 years on select programs. Send the quote and we will tell you which tier your file lands in, usually the same day.
On rates: Any range on this page is illustrative rather than a quote. Your actual rate can come in higher or lower, and it depends on personal and business credit, time in business, the equipment itself, the term you choose, and the size of the transaction. Two files for the same machine can price differently. It is also worth checking the date on anything you read elsewhere. A good deal of the equipment-finance content still circulating was written when prime was 3.25%, and prime is 6.75% today, so if you happen to come across rates like 5% or 6%, it is worth confirming whether the page is current before you plan around it. The surest way to know your number is to let us price your file.
Related dental financing guides
More on financing equipment for a dental practice.
Dental equipment rate questions
Why do some sites say equipment financing starts at 5%?
Because much of that content was written in a different rate environment and never updated. In 2020 and 2021 the federal funds rate was near zero and prime was 3.25%, so a 5% equipment loan was real. Prime is 6.75% as of August 2026, and no commercial funder lends below its own cost of money. Check the publication date on any page quoting 5% or 6%, and if it is current, ask what is attached: a manufacturer promotion on one specific unit, a captive subsidy paired with a service contract, or a lease payment factor that is not the full cost of the contract.
What is the average interest rate for dental equipment loans in 2026?
As of August 2026, dental equipment loans generally price between roughly 7% and 20% APR. Practices with 760+ personal FICO typically see 7% to 11%; 700 to 759 sees 9% to 14%; 640 to 699 sees 13% to 20%; and below 640 sees 18% to 30% or higher. The Wall Street Journal prime rate is 6.75%.
What credit score gets the best dental equipment financing rate?
A personal FICO of 760 or above generally qualifies for the best pricing, typically 7% to 11% APR with approval rates around 95%. Scores of 700 to 759 typically price at 9% to 14%. The difference between a 760 file and a 690 file is commonly 5 to 8 percentage points, making personal credit the single largest driver of rate.
What is the prime rate in 2026?
The Wall Street Journal prime rate is 6.75% as of August 2026, unchanged since December 2025, based on a federal funds target range of 3.50% to 3.75%. Prime is the reference index for most variable-rate commercial credit, including SBA 7(a) loans and business lines of credit.
What are SBA 7(a) rates for dental equipment in 2026?
SBA 7(a) maximum rates as of August 2026, against a 6.75% prime rate: loans over $250,000 are capped at prime + 3% variable, or 9.75%; loans of $50,000 to $250,000 at prime + 6%, or 12.75%; and loans of $50,000 or less at prime + 6.5% variable, or 13.25%. Terms run to 10 years for equipment.
How much does one percentage point of interest cost on a dental equipment loan?
On a $120,000 loan over 60 months, one percentage point costs approximately $58 per month, or about $3,470 across the full term. At 8% the payment is $2,433 monthly and total interest is $25,990; at 9% the payment is $2,491 and total interest is $29,460.
Are dental equipment loan rates lower than general business loan rates?
Generally yes, for two reasons. Equipment financing is secured by identifiable, recoverable collateral, which prices better than unsecured credit. And dental practices are considered one of the more creditworthy small-business segments, with historically low default rates, so lenders often price dental borrowers toward the favorable end of published equipment-finance ranges.
Should I take the lowest rate offered?
Not automatically. A lower rate paired with a three-year prepayment lockout, a blanket lien on all practice assets, or heavy origination fees can cost more than a slightly higher rate with clean terms. Compare total cost of the contract along with lien position and prepayment flexibility, rather than APR alone. Total cost means every payment plus every fee.
Does a lease have an interest rate?
Fair market value operating leases carry an effective rate of roughly 7% to 11% embedded in the payment rather than stated as an APR. FMV leases often suit fast-cycling technology such as CBCT and intraoral scanners, but the payments are deducted as operating expense rather than qualifying for Section 179, since the lessor owns the asset. A $1 buyout lease is treated as ownership and does qualify.
Want to know where you actually price?
Published ranges only go so far. One application across our funding programs gets you a real number, without six credit pulls.
This article is general information about commercial equipment financing and is not a commitment to finance. All financing is subject to credit approval and underwriting. Rates, terms, and approval depend on the complete business and credit profile. Figures shown are illustrative market ranges gathered from published sources as of August 2026 and are not an offer. Five West Financial is not a tax advisor or an accounting firm; confirm any tax treatment with your CPA before relying on it.