What is Equipment Financing?
Equipment financing is the use of a loan or lease to purchase or borrow hard assets like machinery for your business. Rather than paying for the assets in full upfront, equipment financing allows you to receive the equipment you need now while allowing you to pay for the asset over a period of time. This ideal for purchasing healthcare equipment, construction vehicles and machinery, kitchen equipment, and other large hard asset purchases that allow you to increase production and grow your business.
With equipment leasing, instead of borrowing money to purchase the equipment outright, you are paying a fee to borrow the equipment from the leasing company who maintains ownership of the equipment while you use it. This is a great option for businesses that exchange or upgrade equipment frequently or ones that do not have the capital to pay the down payment required for a loan. It’s also more likely to cover additional soft costs associated with delivering and installing the equipment.
Lease arrangements can vary depending upon your company’s needs and if you want to own the equipment, some leasing companies will offer the option of purchasing the equipment at the end of your term.
An equipment loan is a loan taken out with the intended purpose of purchasing equipment. Typically, the equipment secures the loan meaning that if you can no longer afford to pay the loan, the equipment gets repossessed as collateral.
These loans are perfect for business owners that need a piece of equipment long-term but can’t afford to make the purchase upfront as the lending institution typically agrees to deploy the majority of the capital so that you can pay in periodic phases. While the arrangement will ultimately cost more than if you had bought the equipment upfront, equipment loans allow you to receive the equipment you need, while leaving you with sufficient working capital.
Loan amount from $10,000 -$250,000
How To Apply
Same Day Approval
To get prequalified, follow the "Apply Now" button and submit some basic business information.
After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.
Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.
670+ personal credit score for startups
580+ personal credit score for 2+ years in business
Signed one page funding application
3-5 months of business bank statements
Invoice or quote for the equipment
Equipment Financing: Advantages and Disadvantages
A business equipment loan can help you quickly obtain working capital to buy or lease the items you need for your business.
Allows you to access equipment you could otherwise not afford, and it generally carries lower monthly payments than many other flexible financing options.
The equipment is often collateralized, making it easier to qualify for than most unsecured financing options. In other words, you do not need as strong of a credit score or annual revenue to qualify.
The interest rate and loan terms are often more favorable than many alternative financing options.
Buying the equipment outright will always be less expensive than financing it and equipment that needs to be replaced frequently may cause large amounts of debt.