Equipment financing helps you get the trucks, tools, kitchen gear, machines or technology your business needs while keeping cash on hand. The equipment itself usually helps secure the financing. No hard credit pull to start.
A lender helps you buy a specific piece of equipment, and you repay over a set term. The equipment usually serves as collateral, which can make this one of the more accessible options, including for newer businesses. Leasing is an alternative for equipment that becomes outdated quickly.
By Robbie Garvey, Founder · Last updated
What this means: Financing to buy equipment, where the equipment usually helps secure it.
New to these words? See the glossary. Every decision and every term comes from the lender.
With equipment financing, a lender helps you acquire a specific piece of equipment and you repay over a set period. Because the equipment typically serves as collateral, lenders can often look past some factors that would matter more for unsecured options. When the financing is paid off, the equipment is yours.
Leasing is a close cousin. With a lease, you use the equipment for a set period and may have options at the end to buy it, return it or upgrade. Leasing can make sense for technology that ages quickly, while financing often makes sense for equipment you plan to use for many years.
Equipment financing covers a wide range of needs: work trucks and trailers, construction and landscaping machinery, restaurant ovens and refrigeration, salon and spa stations, medical and dental equipment, manufacturing tools, point of sale systems, computers and more. New and used equipment can both be options, depending on the lender.
Having a quote or invoice from the seller ready makes the process smoother, since lenders want to know exactly what is being purchased, from whom and for how much.
The main reason is cash flow. Instead of paying the full price up front, you spread the cost over time, ideally while the equipment is already helping you earn. That keeps more cash available for payroll, inventory and the unexpected. If you also need ongoing flexibility, consider pairing it with a business line of credit or working capital.
Equipment financing can also be a practical path for newer businesses, since the equipment provides security. See startup funding for more options if you are just getting started.
Lenders typically review the equipment quote, time in business, recent bank statements and the owner's credit profile. Larger purchases may require financial statements or tax returns. The type and age of equipment can also affect available terms.
We help you compare equipment financing and leasing paths across our lending partners, explain the terms, and point out tradeoffs before you commit. You decide what fits, and you are never obligated to accept an offer. When you have a quote in hand, start your path or give us a call.
Short-term funds for payroll, inventory, marketing or a slow season. Often repaid from future sales.
Longer terms for bigger plans like expansion or buying a location. More paperwork, more patience.
Paths for newer businesses, often built around the owner's personal credit profile.
Credit shapes the options open to you. See how lenders look at it, check where you stand and find help if you need it.
Many lenders consider used equipment. Age, condition and seller type can affect the options.
It depends on the lender and your profile. Some offers require one and others do not.
Leasing can suit equipment that becomes outdated quickly, while financing often suits long-lasting equipment. We can compare both for your situation.
There is no hard credit pull to start. Any later checks are explained before they happen.
Applying is free and takes a few minutes. Here is what to expect, step by step.
A short online application, or a call with our team. About the business, what the money is for and how much you have in mind.
My team and I review what you shared and call or text you, usually to ask a few questions and explain what we see.
Usually recent bank statements and your own credit report through our IdentityIQ link. No hard credit pull to start.
We shop your file with lending partners and walk you through any offers, including the total payback.
Take an offer or don't. There is never pressure, and you can stop at any point.
Timing depends on the option and the lender. We'll give you honest expectations once we know your situation. Rather talk first? Book a free 20-minute call.
A short, free application. No hard credit pull to start.
No pressure and no hard credit pulls to start. Tell us where your business stands, and we'll walk the options together.
