Equipment Financing

Equipment loans can be used to purchase new or used equipment.

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Loan Amount

$5,000-5,000,000

Loan Term

1-5 Years

Time to Funds

As Fast As 24 Hours

Interest Rates

As Low as 7.5%

Go ahead and roll up your sleeves we have a loan for that.

Equipment is one of the most important assets for any business.

An equipment loan can be used to purchase new or used equipment. Like most business expenses, equipment typically pays for itself over the course of its lifetime. Fully functioning equipment leads to increased productivity and a better production process. It’s next to impossible to maintain a business without the right tools.

A malfunctioning piece of equipment can be the death of a young business in certain industries, so it is critical to replace these assets as quickly as possible. Equipment loans offer a unique opportunity to acquire the capital necessary to finance the cost of replacing high-cost equipment.

Most business equipment can be financed.

Outside lending is often the only option when you need access to capital to make business purchases. While traditional lending sources are available, businesses often look for alternative sources of financing. If the need is immediate or the time to purchase equipment is limited, an unsecured loan may be the best option available. Because the process is much faster than traditional lending, new equipment can be purchased quickly with very little interruption to production.

Benefits of Equipment Loans

Quick Approval

Tax Deductible

More Money In Your Pocket

Buying Better Quality

Flexible Payment Schedule

Approximately 25% of “Soft Costs” Covered

We work with different lenders who’re all trained to handle industry-specific loans

No matter the source of your loan, be sure to match its term with the expected life span of your new equipment. If you’re buying commercial kitchen equipment that you expect to use for five years, get a loan with a five-year term. A shorter term may have you scrambling to make payments, and a longer term will have you paying off the equipment even after you stop using it.

Equipment Leasing.

Leasing typically does not require a down payment. This is especially beneficial for those businesses with little to no available capital. If a down payment is required, it is typically relatively small compared to what a traditional loan down payment would look like.
With a lease, you can finance around 100% of the cost of the item or items plus around 20 – 25% of the so-called “soft costs.” Soft costs include any taxes or delivery charges

There’s no business equipment that cannot be financed.

When small business entrepreneurs hear anything about equipment financing, their minds automatically goes to backhoes and tractors. You can actually finance construction equipment, but that is not the only thing you can finance.

There are financing options for every resource or tool needed for practically anything in the small business industry. Whatever you might need, whether big or small, complicated or basic, we have what it takes to help you cover your costs.

Here are some examples of small business needs that can be covered with equipment financing:

Workbenches, conveyor belts and forklifts.
Software and hardware for processing point-of-sale payment.
Deep fryers, food processors, freezers, grills, commercial ovens, and lots more.
Office fixtures and furniture – from desks sets, to cubicles, lighting, rugs.
Software, including CRMs, accounting programs, operating systems and lots more.
Appliances like refrigerators, coffee makers, telephones and more.
Delivery vehicles, trailers, food trucks and company cars.
HVAC units and solar panels.

The qualification and application procedures for equipment financing are quite straightforward.

To qualify for equipment financing, You must have been in business for not less than 12 months, have at least $50,000 as annual revenue and your credit score must not be less than 650. However, you can also qualify with a credit score of less than 650 if you can prove that your business has enjoyed solid revenues and cash flow for the last 3-6 months.

And even if you’re short of some requirements, don’t worry – because qualification requirements vary depending on the equipment type and lender. You can check out your qualification status by filling our 15-minute application form or contacting some of our funding managers on 800-450-2485.

You don’t even need to have any collateral or make a down payment. The fact that the equipment can actually be used for collateral is probably one of the best things about equipment financing - so you don’t have to risk your personal assets or drain your entire liquid cash to secure a loan. Your lender will review the equipment you intend to buy, whether used or new and its lifetime value, to determine how much you’re capable of financing. Imagine having the funds to buy the cool contraption you’ve been longing for without having to make a down payment.

The fact that the collateral is actually a part of the loan, means it is not as difficult to get it approved as we think. Applying for equipment financing is actually easier than you think: all you need to do is, fill our application form, then compare the different financing options available to you on our nationwide network which comprises of more than 75 lenders.

Just like the equipment, the costs incurred may vary.

Four things will determine the loan payment plan for your equipment: interest rate, loan sum, collateral and term. These factors may vary according to equipment type and industry. We work with different lenders who’re all trained to handle industry-specific loans, to make sure you get the best possible deal.

We have an equipment financing calculator that you can use to figure out the monthly payments you can actually afford.

Don’t forget to put the likely long-term and short-term gains from your equipment into consideration.

You can weigh the proposed benefit of your new equipment against your monthly payments, to determine whether or not equipment financing will be profitable for you. Here’s an illustration: if you’re financing a 3-D equipment that costs you $600 every month in payments, but brings you additional $2,300 in monthly orders, it means your added cash flow outweighs the costs which makes the loan viable.

This concept can also be applied to the possible man-hours you can save if you purchase a software to automate hours of payment processing and invoicing, or the ability to attract new business by using an upgraded sorting equipment that ensures your shipping times are significantly faster than that of your competitors.

You should also consider the equipment’s longevity before financing in other to determine whether you’ll enjoy long-term ROI. Any equipment that does not provide your business with a major lift or might become obsolete after some years, may not give you that long-term return that you’re looking for- but if you take a 4-year equipment loan for an equipment that can last for about 12 years, the odds of going wrong on such an investment are low.