Equipment financing
Invest in your future with all the right tools
Whether you want to purchase or lease new equipment for your business, equipment financing makes it easy and affordable to secure all the best tools.
Easy equipment financing solutions for your needs
When equipment breaks, it doesn’t mean your business has to suffer. When you use SmallBusinessLoans, we connect you with financial providers that specialize in equipment financing for different industries, so you can get approved for the cash you need quickly and easily.
We partner with traditional and alternative financial providers. When a business owner like you has a system that goes into failure, a conveyor that jams, CNC machines that break, or a hydraulics issue with a forklift, you can keep operations running with quick funding solutions. At SmallBusinessLoans, what sets us apart is that we match your unique funding needs and financial profile with the top options in the industry. This gives you a better chance of getting approved and funded when compared to loan shopping on your own.
When equipment breaks, time is of the essence. Whether you want to buy, lease, repair, or replace, you can fast-track your equipment financing by filling out our secure online form today.
What is equipment financing?
Equipment financing is a type of small business loan that is meant for purchasing, repairing, leasing, or replacing a specific piece of equipment. This is different from a traditional small business loan, which can be used for working capital, expansions, and other business purposes.
You finance the cost of a new or pre-owned piece of equipment with the loan and then make regular payments toward its purchase price. Unlike a working capital loan where you put company assets up as collateral, the equipment itself is typically used as the collateral for this type of loan.
One other difference between equipment financing and other business loans is the need to get a quote from the vendor for the total price. This is a unique requirement for equipment financing. Additionally, your lender may require an appraisal on the equipment you’re looking to finance before you can get approved.
How equipment financing works
Equipment financing follows a simple 7-step process.
Get a quote from the vendor you will be purchasing or leasing the equipment from.
Use SmallBusinessLoans to get matched with the best financing options for your needs.
Apply directly with the financial provider you select and submit all required documents.
If approved, negotiate the terms and conditions of the agreement and sign. If declined, you’ll learn the reasons why and be able to reapply or look for another solution.
Receive funds directly in your business bank account.
Once you’ve been funded, begin the repayment process based on the terms of the equipment financing agreement.
If you want to save time and increase your chances of getting approved for equipment financing (as well as potentially secure a better rate), platforms like ours can help. After you use our secure online form, you’ll be matched with financing providers who have experience in your industry.
The best part? It only takes seconds to see your matches, and our partners make it quick and easy to apply for funding. This allows you to get the equipment financing you need to keep your operations running — fast.
The difference between equipment financing and leasing
Both equipment financing and equipment leasing are types of equipment loans, but they have a few differences between them.
- Equipment financing means you finance the cost of the equipment and, at the end of the loan term, you own the equipment outright. This option works best for equipment that will be used for several years and that maintains its value.
- Equipment leasing offers more flexibility for equipment with high depreciation and for equipment that requires regular maintenance. At the end of your lease, you’ll either renew or return the equipment to the lessor, who is also generally responsible for any maintenance or repairs that the equipment needs during your term.
How to apply
To qualify for an equipment financing loan, you’ll generally need:
- At least six months in business
- Fair to excellent credit
- A quote on the equipment from the vendor
Every financing provider will have different qualifications when it comes to financing equipment. They’ll also likely specialize in different industries. If you want to save time and take the guesswork out of which provider knows your niche, fill out our online form and get matched with trusted solutions that suit your needs.
What equipment financing can be used for
Equipment financing loans can be used to buy, lease, replace, or repair virtually any type of equipment.
If you operate a brewery or a dairy farm and need refrigeration systems or storage tank replacement, equipment loans can cover the cost. The same financing can be used for purchasing new or used systems if you’re increasing production.
If you manufacture products, from T-shirts to electronics, the equipment loan can cover the cost of repairing current systems or replacing parts that break. It’s a flexible type of financing that helps keep your operations running.
Using a platform like SmallBusinessLoans can help speed up the process. All you have to do is answer a few questions about your funding needs, and we match you with top equipment financing providers – instantly.
Qualifications and requirements for equipment financing
When you work with our partners, the eligibility requirements are few and simple for equipment financing. They include:
At least
12 months
Minimum $250,000
Fair to
excellent credit:
At SBL, our partners keep the paperwork to a minimum. Required materials are often limited to a credit check and bank statements, so you can get approved for funding faster.
3 steps are all you need to unlock real solutions
Frequently asked questions
Can I use Section 179?
Yes, you can use the Section 179 tax deduction on financed equipment to deduct the entire purchase price up front rather than incrementally over several years. You’ll get bigger tax savings up front and improve overall cash flow for the next year.
Any equipment purchased before the end of the calendar year qualifies for Section 179, meaning you can set your business up for success by saving cash and giving yourself a bigger tax break.
Can I finance used equipment?
Yes, you can finance used or pre-owned equipment for your business. Typically, you only need a price quote from a vendor and to meet your lender’s requirements in order to qualify for equipment financing, whether the piece is new or used.
Are equipment loans easier to get?
Equipment loans are generally easier to qualify for, as they have minimal requirements such as at least six months in business and a price quote from a vendor. The loan is secured by the piece of equipment itself, meaning you don’t necessarily have to provide additional assets as collateral or documentation to prove your business’s risk level.