Can I use a personal loan to buy roofing equipment?

Yes, you can use a personal loan to buy roofing equipment such as a tear-off conveyor, nailer, or skid steer, provided your loan agreement doesn't exclude business use. It's fast and needs no business paperwork. But for a gear purchase specifically, dedicated equipment financing is usually the better tool: it's secured by the machine itself, carries longer terms, and unlocks tax deductions a personal loan can't.

A personal loan makes the machine your personal debt. You're personally liable for every payment regardless of how the business performs, the loan does nothing to build your business credit, and you typically can't borrow more than $100,000 (Bankrate) — a real ceiling once you're buying boom trucks or multiple machines.

Personal loan vs. equipment financing for the gear

With equipment financing, the roofing equipment you buy acts as collateral, which lowers borrowing costs and makes approval easier even with limited operating history. Terms typically run from three to 10 years, though many lenders ask for a down payment of as much as 20 percent of the equipment's cost (Bankrate). Because the gear secures the loan, you usually qualify on the asset's value rather than a pristine personal credit file, and on-time payments can build your business credit (U.S. Chamber of Commerce). See our personal loan vs. business loan breakdown for roofers and the equipment financing overview for how those products are structured.

A personal loan is unsecured, so the lender prices in more risk. As of 26/05/2026, the average personal loan rate was 12.27% for a 700 FICO borrower on a $5,000, three-year loan (Bankrate). APRs typically span 6% to 36%, and borrowers with bad credit (300–629) average around 26.65% (NerdWallet) — the exact credit band many roofers land in. Personal-loan repayment terms are also shorter, raising the monthly payment on a five-figure machine.

The tax angle you lose with a personal loan

This is the biggest tradeoff. Buying equipment through your business lets you elect a Section 179 deduction — for tax years beginning in 2025 the maximum deduction is $2,500,000, phasing out only once equipment placed in service exceeds $4,000,000 (IRS Publication 946). That can let you write off the full cost of qualifying roofing equipment the year it's placed in service. A personal loan blurs the line between you and the business and makes that business deduction far harder to substantiate.

Risks to weigh

• Personal liability and credit: payment history on a personal loan has no impact on your business credit, but late payments hit your personal score and can block future personal borrowing (Bankrate).
• Loan-agreement exclusions: not all personal-loan lenders permit business use; if the agreement excludes it, using the funds for equipment can violate the terms.
• No asset-based underwriting: you can't lean on the equipment's value to get approved, so a thin or seasonal cash-flow profile counts against you.

When a personal loan does make sense — a tiny tool purchase, a brand-new venture with no business credit, or speed above all — read our companion guide on whether a personal loan is OK for your roofing business. For a five-figure machine you'll keep for years, equipment financing's lower secured rate, longer term, and Section 179 treatment usually win.

Sources

• Bankrate — Can Businesses Use Personal Loans?
• Bankrate — Pros and Cons of Equipment Loans
• Bankrate — Average Personal Loan Rates
• NerdWallet — Average Personal Loan Interest Rates
• IRS Publication 946 — How To Depreciate Property (Section 179)
• U.S. Chamber of Commerce — Financing Business Equipment