Equipment Financing for Business: Complete Guide
Equipment financing allows businesses to acquire necessary equipment without large upfront costs. Understanding how it works can help you grow your business.
Whether you need vehicles, machinery, technology, or other business equipment, financing can help you acquire what you need while preserving cash flow.
What is Equipment Financing?
Equipment financing is a loan or lease specifically for business equipment. The equipment itself serves as collateral, making it easier to qualify than unsecured loans.
Types of Equipment Financing
- Equipment Loans: You own the equipment after paying off the loan
- Equipment Leases: You pay monthly to use equipment, then return or buy it
- Equipment Lines of Credit: Revolving credit for multiple equipment purchases
Benefits of Equipment Financing
- Preserve cash flow
- Easy to qualify (equipment is collateral)
- Fixed monthly payments
- Tax benefits (depreciation, interest deductions)
- Fast approval and funding
What Equipment Can Be Financed?
- Vehicles and trucks
- Machinery and manufacturing equipment
- Computers and technology
- Medical equipment
- Construction equipment
- Restaurant equipment
- Office furniture
How to Qualify
Equipment financing typically requires:
- Credit score of 650+
- Time in business (varies by lender)
- Annual revenue requirements
- Down payment (often 10-20%)
Get Equipment Financing Quotes
Ready to acquire the equipment your business needs? Compare equipment financing options from multiple lenders to find the best rates and terms.