Equipment financing is a business loan that provides capital for the purchase of new or used equipment such as vehicles, machinery or technology. Equipment loans allow you to finance up to 100% of the value of the equipment you want to purchase. These loans are repaid over time with interest.
Business equipment financing is asset-based financing, meaning the equipment itself is the collateral for the loan. For this reason, equipment financing is often easier to obtain than other types of small business loans. Equipment loans can be a good option for startups or businesses with average or poor credit ratings.
MAX LOAN AMOUNT:
Up to 100% of equipment value
Five to six years
4% to 40%
Quick funding for equipment purchases
Equipment itself is the collateral
Easier to qualify for than other business loans
Limited paperwork, fast application process and affordable interest rates
Equipment could be obsolete by the time the loan is fully repaid
May require a down payment
Only useful to businesses that need to purchase equipment