Overview
Need machinery, vehicles, tech, or specialized equipment? Equipment financing lets you acquire what your business needs without draining your cash reserves. The equipment itself typically serves as collateral, which makes approval easier and rates more competitive.
You spread the cost over time while the equipment generates revenue from day one. Some lenders offer 100% financing with no down payment required. We'll match you with the right lender based on the type of equipment and your business profile.
How do I get one?
Key qualification requirements:
Creditworthiness
Lenders will assess the credit history of the business and its owners. A good credit score can help secure better interest rates and terms, though businesses with less-than-perfect credit may still qualify.
Type of Equipment
The equipment being financed must be necessary for the business and typically has to have a reasonable resale value. Lenders may require a description or an invoice from the equipment seller.
Down Payment
Some lenders may require a down payment, often ranging from 10% to 20% of the equipment's cost. However, 100% financing may be available depending on the lender and the strength of the application.
Time in Business
Lenders usually prefer businesses that have been operating for a minimum period, often one to two years, although startups may also qualify if they have strong credit and financial backing.
Business Financials
The lender will evaluate the business's financial statements, including profit and loss statements, balance sheets, and tax returns, to ensure the business can handle the monthly payments.
Equipment Details
The lender may require specific details about the equipment, such as its value, expected lifespan, and how it will be used. Newer, more essential equipment is often easier to finance than specialized or older equipment.
Collateral
The equipment itself typically serves as collateral for the loan. This reduces the lender's risk and can make it easier for the business to qualify.
FAQ