Equipment financing helps a business acquire eligible equipment while spreading payments over time. Compare an equipment loan, lease, and cash purchase using the full cost, how long you will use the asset, and the working capital you need to retain.
Purchase planning
Advertised financing starts at $10,000, with requests of $500,000 or more subject to program review.
Term range
12–72 months, depending on the asset, program, and underwriting.
Bring a quote
Identify the vendor, equipment, condition, price, and intended business use.
Equipment Loan vs. Lease vs. Cash
| Option | What to review | When it may fit |
|---|---|---|
| Equipment loan | Ownership, lien, interest, fees, down payment, and payoff terms. | A long-lived asset you expect to keep. |
| Lease | Ownership during the lease, maintenance, return conditions, renewal, and purchase option. | Equipment that may need regular replacement; availability varies. |
| Cash purchase | Upfront cost and the operating reserves left afterward. | A purchase that will not strain working capital. |
A lower lease payment can include an end-of-term residual or buyout obligation. A financing approval does not establish that the equipment will pay for itself. Estimate realistic utilization, maintenance, insurance, and downtime as well as revenue.
New and Used Equipment Across Industries
Potential purchases include construction machinery, manufacturing tools, restaurant equipment, medical or office equipment, and commercial vehicles. Eligibility depends on the specific asset and program. Used equipment may require information about age, condition, remaining useful life, valuation, and the seller.
For tractors, trailers, or other titled vehicles, provide the detailed specification, price, title or ownership information available, mileage or hours, and intended use. Ask about vendor, age, and condition restrictions before committing to a purchase.
Budget Beyond the Sticker Price
Ask whether taxes, freight, installation, training, warranties, or software can be included. Some costs may need to be paid separately. Financing up to the purchase price is subject to review; a down payment may be required. Confirm insurance, maintenance, lien, and personal guarantee requirements.
Application Requirements and Vendor Coordination
- Starting guidelines: one year in business, $25,000 in monthly revenue, and a credit score of 575.
- A U.S.-based business with an active business bank account and no active bankruptcy under the stated program guidelines.
- A signed application and four recent complete business bank statements.
- A detailed vendor quote and requested equipment information; additional financial or identity records may be required.
- Choose the equipment and request an itemized vendor quote.
- Apply and provide the requested records through the approved channel.
- Review the available structure, costs, security obligations, and delivery requirements.
- Coordinate any vendor payment, inspection, acceptance, and closing conditions with your contact.
Vendor-arranged financing can simplify quote coordination, but compare the offer independently. Confirm the provider's identity and how vendor incentives or fees affect cost. Ask your contact for application status and the next outstanding requirement. There is no promised equipment credit line or preapproval unless the team confirms one in writing.
Section 179 and Depreciation: Plan With Your Tax Adviser
Eligible equipment may qualify for depreciation deductions, including a Section 179 election in qualifying circumstances. A deduction reduces taxable income; it is not a dollar-for-dollar refund of the purchase price. Ownership, business use, when the equipment is placed in service, income limitations, and current federal and state rules matter.
Have a qualified tax professional review the transaction structure and current-year limits before estimating savings. Do not assume every lease provides the same deductions as ownership. Read IRS Topic 704 on depreciation and IRS Publication 946 for authoritative guidance.
Explore other business financing options or ask an equipment financing question.
Frequently Asked Questions
Can I finance used equipment?
Used equipment may be eligible depending on age, condition, value, seller, and the program. Supply a detailed quote and ask about restrictions before making a purchase commitment.
Is a down payment required?
It depends on the asset and underwriting. Do not assume 100% financing. Review the financed amount, upfront costs, and any deposit in the written offer.
Who owns the equipment?
Ownership depends on whether the arrangement is a purchase loan or a lease and on its specific terms. Review liens, purchase options, return conditions, and end-of-term obligations.
Can delivery and installation be financed?
Some programs may include eligible related costs. Request an itemized quote and confirm which costs must be paid separately.
How can I estimate Section 179 savings?
A tax professional should review qualifying cost, business use, placed-in-service timing, income limitations, and current-year rules. A potential deduction is not the same as tax savings or a guaranteed refund.
How do I track my application?
Contact the team member handling your file or use the contact page. Ask what is outstanding and the expected next review step; avoid sending financial records in a general message.
Is a preapproved equipment credit line available?
Ask the team about current program availability. No revolving facility, future purchase approval, or committed limit exists unless confirmed in an applicable written agreement.
What information should I bring to a specialist?
Bring the equipment description, vendor quote, intended use, desired timing, business history, and requested amount. Prepare a signed application and four recent complete business bank statements.
Will equipment financing improve my credit score?
That depends on reporting and payment history. Ask whether the provider reports the account; no credit-score increase is guaranteed.
How quickly can the purchase close?
Timing depends on underwriting, documentation, the vendor, asset verification, delivery, and closing conditions. Ask for an estimate tied to your specific purchase.
Availability, pricing, approval, and funding timing depend on the program and underwriting. Review your written offer and agreement before accepting financing.