Equipment Financing
Equipment financing provides the capital you need to purchase machinery, vehicles, tools, or technology. The equipment itself serves as collateral, making it easier to qualify.
What is Equipment Financing?
Equipment financing is a type of loan specifically used to purchase business equipment. The key feature of this financing is that the equipment you are buying acts as the collateral for the loan. This reduces the risk for the lender, which often results in better approval rates, lower down payments, and competitive interest rates for the borrower.
When running a growing company, having access to reliable capital is essential. The right equipment financing can provide the leverage needed to overcome cash flow hurdles, invest in high-ROI opportunities, and scale operations without giving up equity or control of your business.
Key Benefits
Rates, Terms & Timeline
Rates
Rates are highly competitive because the loan is secured by the asset. Pricing depends on your credit profile, time in business, and the type of equipment being purchased.
Terms
Repayment terms generally match the expected useful life of the equipment, typically ranging from 1 to 5 years.
Timeline
Equipment financing is fast. Approvals often happen in 24 hours, and the lender can pay your equipment vendor directly within 1 to 3 days.
How It Compares
Unlike an unsecured working capital loan, equipment financing requires you to use the funds specifically for the approved asset. However, because it is secured, it often carries lower rates and longer terms than unsecured alternative financing.
Frequently Asked Questions
What kind of equipment can I finance?
Almost any tangible business asset: construction heavy machinery, commercial vehicles, restaurant ovens, medical devices, and even specialized software.
Do I own the equipment?
Yes. With an equipment loan, you own the asset from day one, and the lender simply holds a lien on it until the loan is paid off.
Do I need a down payment?
Many of our equipment financing programs offer 100% financing with zero down payment required for qualified borrowers.
Qualification Requirements
- Minimum 6 months in business
- Vendor invoice or quote for the equipment
- Fair to good credit profile
- Equipment must be for business use
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