Equipment Financing

With an equipment loan, you own the equipment outright at the end of the repayment period the equipment serves as collateral. With leasing, you make payments for use of the equipment and may have an option to purchase at the end of the lease term. Leasing typically has lower monthly payments and makes it easier to upgrade to newer equipment, while loans build equity in the asset.

Yes in most equipment financing arrangements, the equipment being purchased serves as collateral. This is one reason equipment financing is easier to qualify for than unsecured business loans. If you default, the lender can repossess the equipment. This also means you typically don't need to put up other business or personal assets as collateral.

Yes, many lenders finance used equipment, though they may have age restrictions (typically no more than 5–10 years old) and may require an independent appraisal. Loan amounts on used equipment are generally lower since the collateral value is less than new equipment. Specialty lenders often focus on specific equipment types and have more flexible programs for used assets.

Many equipment loans require little or no down payment some lenders offer 100% financing. When a down payment is required, it's typically 10–20% of the equipment value. Some lenders require a larger down payment for used equipment or if your credit profile is weaker.

Equipment financing is typically faster than general business loans. Simple applications for smaller amounts ($25K and under) can often be approved and funded within 1–2 business days. Larger or more complex deals may take 1–2 weeks. Having your equipment invoice or quote ready speeds up the process significantly.