Equipment Financing for Growing Businesses

Equipment financing is a funding structure that lets a business acquire the equipment it needs without paying the full purchase price out of pocket. Instead of draining working capital or a business line of credit, the business makes fixed payments over a set term, typically 24 to 84 months, while the equipment generates revenue from day one. The equipment itself serves as collateral, which is why equipment financing approvals are faster and more accessible than most other forms of business borrowing.

The mechanics are straightforward. You identify the equipment you need, whether from a dealer, manufacturer or private seller. We submit your deal to the equipment finance companies in our network that specialize in your industry and equipment category. Once approved, the finance company pays the seller directly. You receive the equipment and begin making monthly payments. At the end of the term on an equipment loan, you own the asset outright.

Equipment financing is available for virtually any business asset with a useful life that supports the repayment term. Trucks, trailers, CNC machines, restaurant equipment, medical and dental equipment, construction machinery, printing equipment, manufacturing lines, software and technology systems all qualify. We work with our network of capital sources to find the right structure for the equipment and the business regardless of industry.

An equipment loan and an equipment lease both let you acquire business equipment without paying cash upfront, but they work differently and serve different goals. Understanding the difference helps you choose the right structure for your situation.

An equipment loan is a traditional financing arrangement where the business borrows money to purchase the equipment. You own the equipment from day one, build equity as you pay down the loan and own the asset outright at the end of the term. Equipment loans make sense when you expect to use the equipment for its full useful life, when you want to carry the asset on your balance sheet, or when the equipment will appreciate in value or have strong resale value. The full purchase price is financeable in many cases, preserving your cash flow while building ownership.

An equipment lease is a rental arrangement where a finance company purchases the equipment and leases it to your business for a monthly payment over a set term. At the end of the lease, you typically have options: return the equipment, purchase it at fair market value or renew the lease. Leases make sense when equipment becomes obsolete quickly, when you want to match the payment to the productive life of the asset, or when preserving working capital and keeping debt off your balance sheet matter more than ownership. Operating leases in particular can improve your financial ratios and free up credit capacity.

From a tax standpoint, equipment loans allow you to claim depreciation and potentially use Section 179 to deduct the full cost in the year of purchase. Equipment leases may allow you to deduct the full lease payment as a business expense. The right choice depends on your tax situation and your accountant's advice. We present both options and let you decide.

Transportation and logistics: Day-cab and sleeper semi trucks, trailers, refrigerated transport, flatbeds, pickup trucks and work vans for fleets of any size. Trucking is one of the most active equipment financing categories in our network with programs specifically designed for owner-operators and carriers.

Construction and heavy equipment: Excavators, bulldozers, backhoes, skid steers, cranes, compactors, concrete equipment and aerial lifts. Construction equipment financing is available for new and used assets with programs that accommodate the seasonal cash flow patterns of construction businesses.

Restaurant and food service: Commercial kitchen equipment, refrigeration units, ovens, dishwashers, POS systems and full restaurant build-outs. Specialty restaurant equipment programs accommodate both individual equipment purchases and full-facility packages.

Medical and dental: Imaging equipment, dental chairs and operatory setups, diagnostic equipment, therapy equipment and surgical systems. Medical equipment financing programs understand the long useful life and high resale value of medical assets.

Manufacturing and industrial: CNC machines, laser cutting equipment, injection molding machines, conveyor systems, packaging equipment and industrial automation. Manufacturing equipment financing programs match repayment terms to the productive life of the asset.

Technology and software: IT infrastructure, servers, telecommunications systems and enterprise software can qualify for equipment financing depending on the transaction size and structure. Technology financing programs often include maintenance and software costs alongside the hardware.

Equipment financing interest rates in our network start at 7.49 percent and move based on credit score, time in business, the type of equipment and the transaction size. Newer businesses and lower credit scores carry higher rates. Established businesses with strong credit and commercial assets that hold their value well qualify for the most competitive rates.

Repayment terms range from 24 to 84 months. The right term matches the expected useful life of the equipment. Shorter terms carry lower total interest cost but higher monthly payments. Longer terms reduce monthly payments and preserve cash flow but cost more in total interest. We structure the term to balance your cash flow needs against the total cost of financing.

Down payments vary by program. Many equipment loans finance up to 100 percent of the equipment cost with no money down for borrowers with strong credit. Businesses with shorter operating history or lower credit scores may be required to put 10 to 20 percent down. Some programs roll soft costs like delivery, installation and extended warranties into the financed amount.

Origination and documentation fees vary by capital source and transaction size. We disclose all fees before you commit and present multiple options so you can compare the total cost of financing, not just the interest rate.

Equipment financing qualification focuses on three things: the business, the borrower and the equipment. A strong file in each area produces the best rates and highest advance. Understanding what lenders look for helps you prepare.

Credit score: Personal credit score is the primary individual qualification factor. Most programs require 620 or higher. Programs with the best rates and highest advance amounts look for 680 and above. Scores below 620 narrow the field but do not eliminate all options, particularly for high-value equipment with strong collateral appeal.

Time in business: Most equipment finance programs require at least 1 to 2 years of operating history. Businesses under 1 year old face limited options and typically need a larger down payment or a personal guarantee from the business owner. Established businesses with 3 or more years of history qualify for the broadest range of programs.

Cash flow: For transactions above $250,000 or for businesses with credit challenges, lenders review bank statements and tax returns to confirm the business generates enough cash flow to cover the payment. Consistent monthly deposits and positive cash flow patterns improve both approval odds and the rate offered.

Equipment type and condition: The equipment's useful life, market value and resale demand all affect financing terms. New equipment from established manufacturers qualifies for the best terms. Used equipment qualifies based on age, condition and market demand. Equipment over 10 to 12 years old may require a shorter term or a larger down payment.

Submit your equipment quote or invoice and basic business information to get started. We handle the matching and get you to approval quickly.