What equipment financing is
Equipment financing is capital used to acquire a specific asset, where the equipment itself usually serves as the primary collateral. Because the loan is secured by something with resale value, this structure is often available for a wide range of businesses.
It commonly funds vehicles, machinery, and the medical, restaurant, or construction equipment a business runs on. If it has a serial number and resale value, it can often be financed.
How it is structured
Equipment financing is typically repaid on a set schedule, with the term often aligned to the useful life of the asset. The idea is that the equipment keeps earning while you pay for it.
Some deals are structured as a loan and some as a lease. Which is available, how much of the cost is covered, and the length of the term all depend on the asset and the lender.
Ready to compare real options?
Tell us about the business and we will shop our lender network for you. No obligation, and no hard credit pull to start.
Apply nowWhen it tends to fit
This product tends to fit when the need is a specific, identifiable asset rather than general working capital. Because the equipment secures the financing, it can be a cleaner path than an unsecured product for a hard-asset purchase.
It is common in the trades, transportation, medical and dental practices, restaurants, and manufacturing, where a single piece of equipment can unlock more capacity or a new line of work.
What a lender will look at
A lender generally wants a quote or invoice for the equipment, along with the usual view of the business through bank statements and, for larger requests, financials or tax returns. The age and type of the equipment can matter, since it is the collateral.
Rates, terms, and how much of the cost is covered are set by the lender and vary. We do not quote a rate. We line up options so you can compare the total cost and the schedule.