Purchasing equipment
Your success starts with securing all the right equipment
Equipment, machinery, and technology power your business. So, when a critical piece breaks down, you need a solution fast. That’s why using financing to purchase or lease equipment is such a common scenario for small business owners across industries.
Common expenses associated with owning equipment
Managing or owning equipment can come with various expenses. Here are some common costs for maintaining the tools you need to run your company.
Purchase or Lease Costs
- Purchase price: If you purchase the piece outright, you’ll have to pay the initial upfront cost.
- Leasing fees: If you rent or lease equipment instead of buying, you’ll have monthly or periodic payments.
- Financing costs: If you finance the purchase, you’ll have regular interest or loan payments.
Maintenance and Repairs
- Routine maintenance: Regular servicing keeps equipment running efficiently.
- Repairs and parts: There are costs for fixing or replacing worn-out parts.
- Service contracts: Some types of equipment require ongoing maintenance contracts with vendors.
Utilities and Operation
- Electricity, fuel, or water: Equipment that consumes power or fuel adds to utility bills.
- Consumables: Items like oil, filters, cleaning materials, or printer ink are recurring costs.
- Operator labor: Wages for employees who operate or maintain the equipment are regular expenses.
Insurance and Compliance
- Insurance premiums: To protect against theft, damage, or liability, insurance may be required on your equipment.
- Licenses and permits: Some equipment requires special certification or inspection fees.
- Safety compliance: Costs for training, PPE, or meeting OSHA or local regulations may be required for certain types of equipment.
Need funds to fuel an equipment purchase?
How equipment financing can power your business
Let’s say you run a construction business, for example.
You have a lot of equipment and tools needed to do your job: forklifts, bulldozers, power tools, and more. When your forklift breaks on a jobsite, you need to move fast to replace it to keep your project on schedule.
You don’t have the time to spend days researching different lenders, so you turn to SmallBusinessLoans to get matched with vetted options that suit your needs instantly. And then you apply for equipment financing on the same day.
From there, you secure the funds you need in just 24 hours,3 empowering you to buy the latest forklift on the market. With your upgraded equipment, you get back to work and finish the job ahead of schedule — despite the temporary setback.
Best equipment financing options
No matter your equipment needs, there’s a solution designed for you and your industry. But if you don’t know where to begin, we can help. We’ve sourced the most popular types of financing for equipment purchases and similar expenses below.
Equipment financing
This is the most straightforward option. The equipment acts as collateral, making it easier to secure financing. All you need is a quote from a vendor and decent credit.
Business line of credit
If your business needs less expensive pieces of equipment or frequent tool upgrades, using a line of credit gives you the flexibility to draw funds whenever you need them.
Working capital
If your business needs multiple types of equipment and requires additional funds for other investments, you can use a single working capital loan for various business purposes.
Not sure which solution is best for you? Let us handle the heavy lifting.
At SmallBusinessLoans, we partner with top providers from across the financing space and connect you with the right options for your needs — without any hassle. Simply fill out our quick and secure online form to get started.
