EQUIPMENT FINANCING
Whether you’re an IT team working remotely or a local brewery filling orders, you likely count on equipment to keep your business running. Get financing for vehicles, machines, software, network servers, and more by working with our broad lender network.
What is Equipment Financing?
Heavy-duty machines and high-capacity networks don’t come cheap. If it’s built to last, it probably has a hefty price tag. That doesn’t mean that it’s out of your reach. Equipment financing can help you bring in new equipment, update existing equipment, and refinance another equipment loan.
When the equipment you need is already in place, you can leverage its value to bring cash into other areas of your business. One of our expert lenders will calculate the value of your equipment based on current market rates. Then, you can use that equipment to secure a cash loan. Take the cash and use it to cover payroll, utilities, marketing, and more.
Buy
Equipment loans help businesses keep up with the latest tools they need to stay competitive. If your equipment is outdated, consider utilizing an equipment loan to bring in a better solution.
Lease
Purchasing new equipment isn’t always the best decision for your business. If you need to replace or repair equipment often, leasing from our lenders may be an ideal alternative.
Sales-Leaseback
Get cash for the equipment you already use without giving it up. In a sales-leaseback, the business sells its equipment to a buyer for a lump sum. Then, the business leases the equipment from the new owner until the loan is paid off.
ADVANTAGES OF
EQUIPMENT FINANCING
- Break the expense of new equipment up over several smaller payments.
- Offload the headache of frequent repairs and replacements by leasing equipment.
- Equipment can be nearly anything meant to last several years or more.
- Improve cash flow by refinancing for a lower interest rate.
When is Equipment Financing not a good fit?
You don’t want to be paying on a loan for equipment you’re not using. So, if the expected lifespan of the equipment you need isn’t longer than the loan term, consider another form of financing.
What if I have a low credit score?
Since equipment loans are secured on the equipment itself, a low credit score isn’t always a decision factor in approval. Your business’s annual revenue and length of time in business may be more important to a lender.
How does purchasing equipment affect my taxes?
As an equipment owner, you may be eligible for a depreciation tax benefit. This will depend on the type of equipment and how long you’ve owned it. Consult a tax professional for specific details.
Who finances business equipment?
Private lenders, traditional banks, and the Small Business Administration all offer equipment loans. The SBA, however, doesn’t service their loans directly. We can connect you to a lender who knows the SBA’s specific application requirements.