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Interest Rates, Tariffs, and Rising Equipment Costs: What It Means for Your Business in 2026

3 minutes

If it feels like buying equipment costs more than it did a year ago — and financing it doesn’t feel any cheaper — you’re not imagining it. Two forces are shaping the equipment market in 2026: interest rates that have leveled off well above pre-2022 norms, and tariffs that are pushing up the price of imported machinery, parts, and materials. Here’s what’s actually happening, and what it means for your next equipment purchase.

Where Interest Rates Stand Right Now

In late July 2026, the Federal Reserve held its benchmark rate steady at a target range of 3.5% to 3.75%, extending a wait-and-see stance that’s stretched through most of the year. Three committee members actually pushed for a rate increase rather than a cut, pointing to inflation that remains above the Fed’s 2% target. In plain terms: don’t count on a return to ultra-cheap borrowing anytime soon. Equipment financing rates across the market reflect that reality — currently running roughly 7% to 12.5% through traditional banks and 6.75% to 11.75% through credit unions, with online lenders and equipment dealers often higher. Your actual rate still comes down heavily to your credit profile: businesses with strong credit are seeing offers in the 7% to 11% range, while weaker credit can push well into the high teens or twenties.

Tariffs Are Pushing Equipment Prices Higher

At the same time, tariffs are working their way into the cost of the equipment itself. Research from the Federal Reserve Bank of New York found that roughly 80% of small businesses nationally reported higher prices on imported inputs compared to the year before, and the goods sector — where a lot of financed equipment lives — has been hit especially hard. Most businesses facing these cost increases are passing at least some of it along to customers, while absorbing a portion themselves. Either way, the sticker price on new equipment is trending up, not down, and there’s no clear signal that it’s about to reverse.

What Higher Rates and Higher Prices Mean Together

When financing costs stay elevated and equipment prices climb at the same time, waiting doesn’t pay off the way it used to. The equipment you’re pricing out today is likely to cost more if you price it again in six or twelve months, and there’s little indication that rates are about to drop enough to offset that. For a lot of business owners, that shifts the math toward locking in a fixed monthly payment now, on today’s price, rather than saving up cash while both variables move in the wrong direction.

What This Means for Your Next Purchase

The good news is that the financing market has kept up. Equipment financing is now a roughly $1.2 trillion-a-year industry, funding decisions have gotten faster (many online lenders now fund in about 48 hours), and options exist across a wide range of credit profiles — approval rates run from around 95% for excellent credit down to roughly 40% for businesses with credit challenges, with rate and terms adjusting accordingly. If your bank has already said no, or you’d rather not tie up working capital in a single purchase, financing spreads today’s equipment cost — tariffs and all — into predictable monthly payments instead of one large hit to your cash reserves.

Talk to Us Before You Buy

Every business’s situation is different — your credit profile, the equipment you need, and your timeline all affect what makes sense right now. Talk to us before you commit to a purchase or a financing structure. We’ll walk through your options, help you understand what rate and terms you can realistically expect, and make sure you’re not leaving money on the table in a market that’s shifting on two fronts at once. Request a quote and we’ll get back to you quickly.

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New vs. Used Equipment Financing: Which Makes More Financial Sense Right Now?

3 minutes

Every business owner shopping for equipment eventually faces the same fork in the road: buy new, or buy used? The answer isn’t the same for every business, and it isn’t the same in every economic climate. Right now, with rates still elevated compared to a few years ago and equipment prices holding steady, the calculation is worth revisiting.

The Case for New Equipment

New equipment comes with clear advantages: full manufacturer warranties, the latest technology, lower maintenance costs in the early years, and no unknown history to worry about. For businesses running equipment around the clock, downtime is often more expensive than the premium paid for new. New equipment also tends to hold its value better in the first few years, which matters if you plan to trade up again soon.

New equipment financing is often easier to secure too. Lenders view new equipment as lower risk because the value is well documented, the condition is known, and manufacturer backing reduces the odds of costly surprises.

The Case for Used Equipment

Used equipment can cost significantly less than new for the same capability, and depreciation has already taken its biggest bite before you ever buy it. For businesses watching cash flow closely, or for startups trying to get a foothold, used equipment can mean the difference between financing something today versus waiting another year to save up.

The tradeoff is that used equipment financing tends to come with more scrutiny. Lenders want to know the age, hours, condition, and remaining useful life of the asset before they commit.

How Lenders See It Differently

This is where the real difference shows up. Lenders underwrite new and used equipment differently because the risk profile is different:

  • New equipment is valued off MSRP or invoice price, with longer terms, lower down payments, and faster approvals
  • Used equipment is valued off appraisal or comparable sales, with shorter terms, larger down payments, and more documentation on condition and hours

Age and hour limits vary by lender. Some manufacturer-backed programs won’t touch equipment past a certain age, while independent finance companies build their entire business around older, high-hour machines that captive lenders won’t approve.

Which Option Makes Sense for You

If your business depends on uptime and can absorb a higher payment, new equipment financing often pencils out better over the life of the asset. If you’re managing tight margins, entering a new line of work, or simply don’t need the latest model to get the job done, used equipment can get you earning revenue sooner and for less money down.

The right answer usually comes down to matching the equipment’s expected lifespan to your financing term, and being honest about how much risk your business can absorb if something needs an unplanned repair.

Frequently Asked Questions

Is it harder to get financing for used equipment? It can be, especially through manufacturer-backed programs. Independent lenders and brokers who specialize in used equipment are often a better fit.

Do interest rates differ between new and used equipment loans? Generally yes. Used equipment loans often carry a modest rate premium to offset the added risk and shorter useful life.

Can older or high-hour equipment still be financed? In many cases, yes, depending on the lender. Some specialty finance companies focus specifically on equipment that captive and bank lenders won’t approve.

Talk to Trident Leasing Corp

Whether you’re weighing new versus used, or you already have a specific machine in mind, Trident Leasing Corp can help you find the right financing structure and the right lender for the equipment you actually need.

Call John Riley directly: 408-275-8900

Email: jriley@tridentleasingcorp.com

Online: tridentleasingcorp.com

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How Small Businesses Are Surviving an Economy Built for the Billionaires

2 minutes

Let’s be honest about the economy small business owners are actually living in. While the headlines celebrate record stock prices and the net worth of a handful of billionaires balloons by billions in a single afternoon, the people who actually build this country — the contractor, the restaurant owner, the trucking outfit, the medical practice down the street — are getting squeezed from every direction. Costs are up. Borrowing is harder. And the playing field has never been more tilted.

Here’s the part nobody at the top wants to say out loud: the system is built for people who already have money. The ultra-wealthy borrow against assets at rates you’ll never see, write off losses you’ll never have, and wait out downturns with cash reserves most small businesses can only dream about. When the economy tightens, the big players don’t sweat — they go shopping. They buy up struggling competitors, snap up real estate, and come out the other side richer than they went in.

Meanwhile, the small business owner is told to “tighten the belt” — as if there’s any belt left to tighten after years of rising prices, higher wages, and lenders who suddenly act like every loan application is a personal insult. It’s infuriating. And it’s exactly why so many good businesses stall out, not because they aren’t profitable or well-run, but because they run out of breathing room.

But here’s the truth that should light a fire under every owner reading this: you don’t have to play by their rules to win. The smartest small businesses aren’t waiting for the economy to feel fair. They’re getting strategic about how they use capital — and that’s where the game changes.

The billionaires figured out a long time ago that cash is a tool, not a trophy. They never tie up their own money in depreciating assets when they can finance them and keep their capital working. You can do the exact same thing. Instead of draining your bank account to buy that truck, that oven, that diagnostic machine, or that piece of construction gear outright, you finance it. You keep your cash where it belongs — in your pocket, ready for payroll, marketing, emergencies, and opportunities.

Equipment financing levels a field that’s been tilted against you for too long. It lets a scrappy, well-run small business move just as fast as the corporation with a billion-dollar credit line. It turns a massive upfront cost into a predictable monthly payment you can plan around. It often comes with real tax advantages that let you write off equipment and keep more of what you earn. And it means you never have to say no to growth just because the bank across town decided you weren’t worth the risk.

That’s the difference between businesses that survive a tough economy and businesses that get buried by it. It isn’t luck, and it isn’t a billionaire’s bank account. It’s refusing to fight with one hand tied behind your back when there’s a smarter way to fund what you need.

At Trident Leasing Corp, we exist for exactly this reason: to give hardworking small businesses the same financing firepower the big guys take for granted. We move fast, we say yes when others say no, and we treat your business like it matters — because it does. Don’t let an economy built for billionaires decide how far you go.

Ready to put your capital to work the smart way? Call John Riley today at 408-275-8900 and let’s get you the equipment you need to compete — and win.

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