- AI Match
Equipment Financing
Made Simple
Equipment financing is a type of business loan or lease specifically used to purchase or upgrade equipment necessary for business operations. The equipment itself serves as collateral, making it easier to qualify for than unsecured loans. Once the loan is repaid, the business owns the equipment outright, while leases may allow for upgrades or returns at the end of the term.
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Starting APR
- Competitive rates
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Max Amount
- Funding available
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From Application to Approval
- Fast approval
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Top Lenders
- Trusted partners
- Common Use Cases
- Purchasing vehicles (trucks, vans, delivery vehicles)
- Acquiring manufacturing or industrial machinery
- Upgrading computers, servers, or IT infrastructure
- Buying Medical or dental equipment
- Replacing restaurant kitchen appliances
- Obtaining construction equipment (excavators, loaders, ect.)
- Installing office furniture or fixtures
- Financing point-of-sale (POS) systems or retail technology
- What You Should Know
- The equipment itself secures the loan, so separate collateral is usually not required.
- Down payments may be required, often ranging from 5% to 20% of the equipment's cost.
- If you default, the lender can repossess the equipment.
- Equipment loans are typically easier to qualify for than unsecured business loans.
- Used equipment may be harder or more expensive to finance than new equipment
- Maintenance, repairs, and insurance are usually the borrower's responsibility.
- Eligibility Requirements
Basic requirements to qualify for mortgage loans
- Minimum 6-24 months in business (some online lenders accept newer businesses)
- Minimum annual revenue of $100,000 (banks may require $150,000+)
- Personal credit score of at least 600 (banks may require 670+)
- Satisfactory business credit history (if available)
- Ability to demonstrate positive cash flow or debt service coverage
- Equipment must be business-related and have sufficient value
- Required Documents
Documents you’ll need to prepare for your application
- Government-issued ID (drivers license)
- Voided business check
- Recent business bank statements (typically last 3-6 months)
- Business tax returns (usually last 2 years)
- Equipment quote or invoice from the vendor
- Business financial statements (profit & loss, balance sheet)
- The Mortgage Loans Application Process
Basic requirements to qualify for mortgage loans
- Pre-Qualification
Complete a pre-qualification form to see potential rates and terms without affecting your credit score. This gives you an estimate of what you might qualify for.
- Application Submission
Submit your formal application with all required documentation. This includes personal information, employment details, financial information, and required documents.
- Credit Check & Underwriting
The lender performs a credit check and reviews your application. They analyze your credit history, debt-to-income ratio, and other financial factors to determine eligibility.
- Loan Approval & Terms
If approved, you’ll receive your official loan offer with terms, rates, and conditions. Review these carefully before accepting.
- Signing & Funding
Sign your loan agreement electronically or in person. Once completed, your funds will be disbursed according to the lender’s process, typically within 30-45 days.
- Advantages
- Preserves cash flow by spreading interest over time
- Fixed monthly payments simplify budgeting
- Fast approval and funding, sometimes within 24-72 hours
- Equipment serves as collateral, making it easier to qualify
- May offer tax benefits (e.g., Section 179 deduction)
- Flexible terms tailored to the equipment's useful life
- Disadvantages
- Limited use: Funds can only be used for equipment purcases
- May require a down payment
- Maintenance and repairs are the borrower's responsibility
- Loan term could outlast the equipments useful life
- Higher rates or stricter terms for used equipment
- Equipment can be repossessed if you default
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