With the front of the curve at 4.85% and the belly inverting only modestly, equipment financing pricing has improved materially for A and B credits.
The rate environment for equipment financing is the most borrower-friendly it has been since early 2022. With SOFR at 4.85% and the 2 to 5 year section of the curve modestly inverted, lessors and equipment lenders are pricing 60-month structures at 7.50 to 9.25 percent for A credits — roughly 175 bps inside the late-2023 peak.
B credit pricing has also improved, though less dramatically. Expect 11 to 14 percent for borrowers with 650 to 700 FICO and 24-plus months in business on standard equipment classes.
Average draw utilization on SMB lines crossed 62% in Q2 2026 — the highest since 2019 — yet headline pricing has tightened 90 bps as bank and non-bank lenders compete for prime files.
Discount fees on non-recourse invoice factoring held at 1.8% to 2.4% per 30 days through Q2 2026, even as average DSO on SMB receivables extended four days year-over-year.
Senior bridge debt is pricing SOFR + 450 to 700 over 65% to 70% LTV, with 1 to 2 points up front. Pricing is materially better for industrial and worse for office.
