Equipment financing for small businesses is a type of loan specifically designed to help small businesses purchase or lease the equipment they need to operate and grow. It covers a wide range of equipment, including machinery, vehicles, technology, and more.

In equipment financing, the business borrows money to purchase equipment, which then serves as collateral for the loan. In most cases the lender will finance the equipment directly with a vendor, who then delivers it to the business. Repayment terms typically match the expected life span of the equipment, with fixed monthly payments that include interest.

Benefits of equipment financing for small businesses include preserving cash flow, the ability to acquire the latest technology or equipment, potential tax advantages, and improved competitiveness by having access to the necessary tools for operation and growth.

Almost any type of business equipment can be financed, including manufacturing machinery, vehicles, computers, office furniture, and more. The key is that the equipment must be used for and be essential for current business purposes.

Qualification criteria typically include a good credit score, a history of generating revenue, and sometimes a down payment. Lenders will also assess the equipment's value and its contribution to the business's operations.

Equipment financing involves taking out a loan to purchase equipment, while equipment leasing involves paying a monthly fee to use the equipment without owning it. Leasing may offer more flexibility and lower upfront costs, but financing may be more cost-effective in the long run.

Yes, even used equipment can be financed. We can also facilitate a private sale (i.e. not a vendor). If you happen to know someone willing to sell you used equipment, we can finance that sale.

Equipment financing can offer tax benefits, such as deductions for interest payments and depreciation. However, tax implications vary based on the specific financing arrangement and business structure, so it's advisable to consult a tax professional.

The time frame can vary depending on the lender and the complexity of the application. Generally, it can take anywhere from a few days to several weeks to get approved and receive the equipment.

Before applying, businesses should assess their equipment needs, review their financial health, compare different financing options, and consider the total cost of ownership, including maintenance, insurance, and potential tax benefits.