What is equipment financing?
Equipment financing lets you preserve your cash by financing the trucks, tools, technology and machinery your business needs to grow. The equipment itself acts as collateral, which usually means lower rates and easier approvals.
Equipment financing is one of the most underused funding tools in small business. Because the equipment itself secures the loan, lenders take less risk and pass that savings to you in the form of lower rates and easier underwriting. We routinely finance brand-new businesses (literally day one) when the operator has strong personal credit and a real plan. Common use cases: a trucking company adding a Class 8 sleeper, a contractor adding an excavator, a clinic adding a new diagnostic machine, a restaurant building out a second location.
Why business owners choose Equipment
- ✓ Up to 100% of equipment cost financed
- ✓ Equipment itself is the collateral
- ✓ Section 179 tax write-off available
- ✓ Startups (1 day in biz) accepted with strong credit
- ✓ Fixed monthly payments
Things to consider
- ! Loan is tied to the equipment
- ! Older / used equipment may need higher down payment