Welding business loans cover two different needs: welding equipment financing for machines such as MIG, TIG and stick welders, engine drives and plasma cutters, and working capital to buy steel, meet payroll and wait for customers to pay. Equipment loans and leases use the machine as collateral; working capital usually comes from a line of credit, invoice factoring or an SBA loan.
Welding shops and mobile welders often work as subcontractors, so this page sits under our construction business loans hub. If your shop runs CNC plasma tables or other fabrication machinery, see CNC machine financing as well.
Who this is for
Welding businesses come in several shapes, and each borrows differently:
- Mobile welders working from a truck-mounted rig on farms, pipelines, job sites and repairs. The biggest purchases are the truck, the engine-drive welder and the bed.
- Fabrication shops building gates, trailers, railings, structural parts and custom work. They buy welders, plasma or CNC tables, saws, press brakes and steel.
- Structural and pipe welding subcontractors that work for general contractors and often wait weeks for payment.
The Bureau of Labor Statistics counts 437,700 jobs for welders, cutters, solderers and brazers in 2025, with a median pay of $53,750 a year. It says 63% work in manufacturing, 8% for specialty trade contractors and 4% are self-employed, and it projects about 40,300 openings a year over the decade (BLS Occupational Outlook Handbook).
Welding equipment financing
An equipment loan or lease is usually the cheapest way to buy welding machines, because the lender can take the equipment back if payments stop. Your options include:
Manufacturer and dealer programs
Welding equipment makers work with outside finance companies. Lincoln Electric’s cutting systems division (plasma cutting systems, Torchmate and PythonX) points buyers to Regents Capital, and states that “All financing is done by a third party and is not done directly by Lincoln Electric.” Regents Capital’s Lincoln Electric page offers a payment calculator and online application but does not list rates or terms, so ask for a written quote. Many welding supply stores also offer financing at the counter; the same rule applies.
Bank and independent equipment lenders
A bank or independent equipment lender can finance several brands in one deal, including used equipment. Ameris Bank Equipment Finance, for example, finances “arc welders, MIG welders, plasma cutters, TIG welders” and publishes these minimum requirements (figures checked on September 21, 2026):
- 2+ years in business
- $100,000+ in annual revenue
- A FICO score of 640 or more
- “Application-only” up to $500,000 for hard collateral and up to $350,000 for soft collateral, meaning you can apply with the application alone up to those amounts
- One-hour approval decisions during business hours, and same-day funding available if approved
“Soft collateral” is equipment with a thinner resale market or that is hard to move and resell, which is why the limit is lower. Meeting a lender’s minimums lets you apply; it does not mean you will be approved.
Leasing
A lease can lower the monthly payment and make it easier to upgrade as technology changes, for example when moving to newer multi-process or inverter machines. You may not own the equipment at the end, so read the buyout terms. Our guide to equipment financing vs. leasing compares the two.
Working capital for welding businesses
Equipment is only half the picture. Fabrication and structural work often means buying steel before the job starts and waiting weeks to get paid. Common tools are:
- A business line of credit to buy material and cover payroll between payments. You draw what you need and pay interest on what you use. See our business line of credit guide.
- Invoice factoring, where a factoring company advances most of an unpaid invoice and collects from your customer. It suits subcontractors waiting on general contractors. See construction factoring.
- Purchase order financing for a large fabrication order you cannot fund from cash. See purchase order financing.
- SBA loans for larger or longer-term needs (below).
Welding business loan options compared
| Option | Best for | What we could source | Trade-offs |
|---|---|---|---|
| Equipment loan (bank or independent lender) | Welders, plasma cutters, rigs, used equipment | Ameris: 2+ years in business, $100,000+ revenue, FICO 640+ | Pricing quoted case by case |
| Manufacturer or dealer financing | New machines of one brand | Lincoln Electric cutting systems finance through Regents Capital | Rates and terms quoted on request |
| Equipment lease | Lower payment, planned upgrades | Terms set by each lessor | You may not own the machine at the end |
| SBA 7(a) | Buying a shop, a building or several machines at once | Up to $5 million; up to 10 years for equipment or working capital | Longer approval and more paperwork |
| SBA Microloan | Startups and small first purchases | Up to $50,000; up to 7 years; average about $13,000 | Small loan sizes |
| Line of credit or factoring | Steel purchases, payroll, slow-paying customers | Terms set by each provider | Costs add up if balances run for months |
SBA figures come from the SBA’s 7(a) loan page, its 7(a) terms page and its microloan page. The SBA lists “Purchasing and installation of machinery and equipment” and “Short- and long-term working capital” among eligible 7(a) uses. Microloans come from nonprofit intermediary lenders and can be used for working capital, supplies, machinery and equipment.
How pricing is quoted
Different products quote cost differently, so compare like with like:
- Interest rate and APR. Loans quote an interest rate. The APR (annual percentage rate) adds fees and shows the total as a yearly cost, which is the fairest way to compare two loans.
- Factor rate. Some short-term products and advances quote a factor rate, a decimal multiplier applied to the amount you receive to give the total you repay. It is not an annual rate, and on a short term it can mean a high APR.
- Factoring fee. Invoice factoring charges a percentage of the invoice, often for each period the invoice stays unpaid.
Most welding equipment lenders do not publish rate ranges. Ask each one for the APR (or the total cost), every fee and the full repayment amount in writing before you sign.
What lenders look for
- Time in business. Many lenders set a minimum, such as Ameris’s two years. Newer welders should read equipment financing for startups.
- Revenue and bank statements. Recent business bank statements show that customers pay you and how often.
- Contracts and customers. Standing work with fabricators, contractors, farms or industrial plants shows repeat demand.
- Certifications and experience. Evidence of your welding certifications and years in the trade can help a new business make its case.
- The equipment quote. Make, model, new or used, and the seller’s invoice.
- Credit. Owners usually sign a personal guarantee, so personal credit matters. If yours needs work, see equipment financing for bad credit.
Taxes
For tax years beginning in 2026, the Section 179 expensing limit is $2,560,000, reduced once you place more than $4,090,000 of qualifying property in service in the year (IRS Rev. Proc. 2025-32). The IRS also says 100% bonus depreciation is now permanent for qualified property acquired after January 19, 2025. Section 179 limits change each year, so use the current IRS figure and ask your tax preparer how it applies to you.
Pitfalls to avoid
- Financing consumables. Wire, rod, gas and grinding discs are used up quickly. Pay for them from cash flow or a line of credit, not a multi-year loan.
- Mixing the truck and the rig without checking terms. A welding truck may be financed as a vehicle and the welder as equipment. Make sure both loans end at sensible times.
- Stacking daily-payment advances. Welding income can be lumpy. Daily debits on top of equipment payments can drain your account in a slow week.
- Overbuying. Buy machines for the work you already win, then upgrade as the backlog grows.
- Not checking for liens on used equipment. Our guide to UCC filings explains how to check.
Welding business loan FAQs
Can I get welding equipment financing as a new business?
It is possible, but many lenders set a time-in-business minimum, such as two years at Ameris. New welders often start with a used machine, a down payment, or an SBA microloan of up to $50,000 through a nonprofit intermediary lender.
What credit score do I need for welding equipment financing?
Minimums vary. Ameris Bank Equipment Finance lists a FICO score of 640 or more, with $100,000 in annual revenue and two years in business. Other lenders set their own thresholds.
Can I finance a welding truck and rig together?
Some lenders will package a truck, bed and welder into one deal, and others finance them separately. Ask each lender how it treats the vehicle, since vehicle titles and equipment are often handled differently.
Can I use an SBA loan for a welding business?
Yes. SBA 7(a) loans can be used for machinery and equipment and for working capital, up to $5 million. Loans go through SBA-approved lenders, and the process takes longer than a standard equipment loan.
Next step
If you are planning a purchase, get the equipment quote, your last few months of bank statements and a list of your main customers together. Our construction business loans hub explains how SMB Compass helps you compare offers from the lenders we work with, and the equipment loan calculator lets you test the payment first.
Sources
- BLS Occupational Outlook Handbook: Welders, cutters, solderers, and brazers
- Ameris Bank Equipment Finance: Welding equipment financing
- Lincoln Electric Cutting Systems: Financing
- Regents Capital: Lincoln Electric financing program
- SBA: 7(a) loans
- SBA: 7(a) terms, conditions and eligibility
- SBA: Microloans
- IRS Revenue Procedure 2025-32
- IRS: Guidance on the additional first-year depreciation deduction
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.