The equipment secures the deal.
Finance the machinery, vehicles or technology the business needs, with the equipment itself as the collateral and a fixed schedule you can plan around.
What it is
Equipment financing pays for a specific asset, new or used, and that asset secures the agreement. Because the funder's claim is on the equipment rather than on everything the business owns, it is one of the more straightforward products to arrange, and it keeps working capital free for everything else.
Payments are fixed for the term, so the cost of the equipment is known from the first month to the last. Depending on how the deal is structured, some or all of the purchase may be deductible in the year it is bought; an accountant can confirm what applies to you.
- Amount
- Up to $500,000
- Timing
- Offers typically in one to two business days
- Term
- Commonly two to seven years
- Equipment
- New or used
Why it fits
Keeps cash in the business
Spread the cost over the equipment's working life instead of paying for it all at once.
The asset is the collateral
The funder's claim is on the equipment, not on the rest of the business.
Fixed payments
The same amount every month for the term. Nothing to re-budget.
Possible tax treatment
Equipment purchases can qualify for accelerated deductions under Section 179. Ask your accountant what applies.
New or used
Reliable used equipment can be financed as readily as new, which can bring the cost down considerably.
Quick to arrange
With a quote for the equipment in hand, offers typically come back within a couple of business days.
How it works
Get a quote for the equipment
From the dealer or seller. The funder needs to know what is being bought and for how much.
It goes to funders that finance that kind of asset
A truck, a CNC machine and a dental chair go to different desks. Offers come back with the term and the fixed payment.
The funder pays the seller, you take delivery
Payments begin on the agreed schedule. At the end of the term the equipment is yours outright.
What can be financed
Heavy machinery
Excavators, production lines, CNC and specialised manufacturing tools.
Commercial vehicles
Trucks, vans, trailers, forklifts and fleet additions.
Restaurant and kitchen
Ovens, refrigeration, prep lines, point-of-sale systems.
Medical and dental
Diagnostic machines, chairs, imaging and practice technology.
Technology
Servers, networking, computers and the software that runs on them.
Construction
Site equipment, tools and the vehicles that carry them.
Questions
About equipment financing
Equipment Financing
With a finance agreement, yes, once the final payment is made. Leases work differently and may end with a purchase option or a return; the offer will say which it is.
Usually, provided the seller and the asset check out. Age and condition affect the term a funder will offer.
Sometimes. It varies by funder, asset and file, and it is stated in the offer.
The agreement continues; the equipment is your responsibility from delivery. Many businesses insure financed equipment for exactly this reason.
The other ways to structure it
If this was not quite the one, the fit is usually one of these.