The usual way to finance a used roll former, folder or slitter is an equipment loan or equipment finance agreement, with the machine as collateral. In 2026 published rates run from single digits for strong borrowers at banks to the twenties and beyond at fast online lenders, terms run two to seven years, and used machines typically need 10 to 25 percent down. Leases lower the payment or set up an upgrade; SBA loans give the longest terms if you can wait for approval. Used equipment that is new to your business can also qualify for a Section 179 deduction of up to $2,560,000 in 2026 and for 100 percent bonus depreciation. Here is how the options compare and what to watch for.
Loan, finance agreement or lease
| Option | Who owns the machine | End of term | Good fit |
|---|---|---|---|
| Equipment loan | You; the lender files a lien | Lien released at payoff | Most buyers who plan to keep the machine |
| Equipment finance agreement (EFA) | You; the lender holds a security interest | Same as a loan | Fast approvals from equipment lenders |
| $1 buyout lease | The lessor, until the buyout | Buy it for $1 | Works much like a loan; often treated as a purchase for tax |
| 10 percent purchase option lease | The lessor, until the buyout | Buy it for 10 percent of the original cost | Lower payment with a known buyout |
| Fair market value lease | The lessor | Return, renew or buy at market value | Lowest payment, planned upgrades |
| SBA 7(a) loan | You | Lien released at payoff | Longest terms, slower approval |
The practical difference between a loan and an EFA is small for most buyers; both put the machine on your books and both end with a free-and-clear title. A fair market value lease is the one to read carefully: one equipment lender puts typical end-of-term buyouts at 10 to 20 percent of the original cost, and an operating lease usually does not qualify for Section 179.
What it costs in 2026
| Item | Published range | Context |
|---|---|---|
| APR, all lenders | About 4 to 45 percent | NerdWallet survey, September 2026 |
| APR, typical | 6 to 22 percent; 6 to 14 percent at 700+ credit; 18 to 22 percent at 580 to 619 | Equipment lender guide, October 2026 |
| Bank example | From 8.50 percent, 700 credit score, two years in business, 12 to 60 months | Bank of America via Bankrate, September 2026 |
| Machine maker’s partners | From 8 percent APR, 36 to 60 months | New Tech Machinery financing page, 2026 |
| Term | 2 to 7 years | Matched to the machine’s remaining life |
| Down payment, used | 10 to 25 percent | Used equipment typically costs 1 to 3 points more than new |
| Minimums | About 1 year in business and $15,000 a month in revenue; banks want 680+ credit, online lenders 600+ | Equipment lender guide, October 2026 |
| Fees | Documentation $150 to $500; origination 1 to 3 percent; UCC filing $25 to $100 | Same |
Read every offer as total cost over the term, not monthly payment. Some lenders quote a factor rate such as 1.10 to 1.36 instead of an APR; multiply it by the amount financed to see what you will repay, and ask for the APR in writing.
SBA loans in plain terms
An SBA 7(a) loan can go up to $5 million, and for equipment the term is up to 10 years unless the machine’s useful life is longer. SBA caps the rate: on variable-rate loans the lender can add no more than 6.5 points to the base rate on loans of $50,000 or less, 6.0 points up to $250,000, 4.5 points up to $350,000 and 3.0 points above that. With the prime rate at 7.00 percent in October 2026, those caps work out to 13.5, 13.0, 11.5 and 10.0 percent. The SBA 504 program offers fixed rates tied to the 10-year Treasury, but equipment must have at least 10 years of remaining useful life, which suits an in-plant line far better than a portable. Both programs take longer than an equipment lender, so start before you find the machine.
Buying used, and buying from a private seller
Lenders finance used machinery with an established resale market, which describes most roll formers, folders and slitters, but they price in age. One equipment lender’s guideline is a machine about 10 years old or less at purchase, with its age plus the loan term no more than 12 to 15 years. Older machines can still be financed, usually with a bigger down payment or through a bank that knows you.
Private-party deals take more paperwork, and not every lender does them. Expect to provide a purchase agreement signed by both sides with the make, model, serial number and price, proof that the seller owns the machine (a title or the original invoice), photos, and often a sight inspection or appraisal. The lender runs a lien search on the seller and the machine, pays off any existing lender directly at funding and sends the balance to the seller. A listing with a stated price, serial number and clear photos makes all of that faster, which is one reason to shop listings that show a real price. If you already own your machines, a sale-leaseback can turn that equity into cash, subject to credit approval.
What lenders will ask for
- The seller’s written quote or bill of sale, with serial number, year and every included item.
- Business basics: legal name, EIN, ownership and time in business.
- Recent business bank statements, and tax returns for larger amounts.
- A credit check on the owners.
- Proof of insurance on the machine before funding.
Our equipment financing page explains how to request a quote for a machine listed on this site.
Section 179 and bonus depreciation in 2026
For tax years beginning in 2026, the IRS sets the Section 179 limit at $2,560,000, reduced dollar for dollar once you place more than $4,090,000 of qualifying property in service in the year. Used equipment qualifies if you buy it from an unrelated party and use it more than half the time in the business, and the deduction cannot exceed your business taxable income, with the excess carried forward. You claim it on Part I of Form 4562 for the year the machine is placed in service, meaning ready and available for use. A machine still on a flatbed on December 31 does not count.
Separately, the 2025 tax law restored 100 percent bonus depreciation for qualified property acquired and placed in service after January 19, 2025. Used property qualifies if neither you nor a predecessor used it before and you did not buy it from a related party. Leases that work like purchases, such as $1 buyout leases, are commonly treated as purchases for Section 179; fair market value leases generally are not. Ask your tax preparer which applies before you sign, because the structure of the deal can change the deduction.
Cautions before you sign
- Personal guarantees. SBA requires owners of 20 percent or more to guarantee the loan personally, and other lenders may ask for one as well. Know what you are signing.
- Blanket liens. A UCC filing can cover every asset the business owns, not just the machine. Ask for a lien limited to the equipment, and make sure the lender files a termination when you pay it off.
- Prepayment penalties. Some equipment lenders charge 1 to 3 percent if you pay off in the first 12 to 24 months. SBA 7(a) loans of 15 years or more charge 5, 3 and 1 percent if you prepay 25 percent or more in the first three years.
- Merchant cash advances. These are repaid daily or weekly from your card sales, are not federally regulated as loans, and carry effective APRs that NerdWallet puts at 40 to 350 percent. The FTC has sued cash advance companies over deceptive practices. Do not buy machinery this way.
- Two quotes minimum. Compare your own bank with an equipment lender on the same machine and term.
Frequently asked questions
Can I finance a 15-year-old roll former?
Often, but not everywhere. Many lenders limit the age of used collateral, so expect a larger down payment, a shorter term or a bank that already knows your business. A recent inspection and service records help.
Does a used machine qualify for Section 179?
Yes, if you buy it from an unrelated party, use it more than half the time in your business and place it in service during the tax year. Confirm the details with your tax preparer.
Is a lease or a loan better for a roll former?
If you plan to run the machine for years, a loan, EFA or $1 buyout lease usually costs less overall and keeps the tax benefits. A fair market value lease makes sense mainly when you expect to upgrade at the end of the term.
Before you apply, check what comparable machines cost in our used roll former price guide and CNC folder guide, then browse used roll formers with prices shown.
