Equipment Financing: The Basics

If your company needs equipment to get to the next level and you dont have the capital on hand to purchase it outright, equipment loan can be the right solution for you! With an equipment loan, you can financing everything from computers to cars. How much you can borrow is contingent on the type of equipment you’re buying and whether that equipment is new or used.

If you’ve ever had a car loan, you’re already pretty familiar with the structure of a business equipment loan. This is because a business equipment loan is a self-secured loan, which means that the equipment itself acts as collateral for the loan. The self- collateralized nature of equipment financing can make these loans slightly easier for some business owners to qualify for.

Most small business equipment loans are made at fixed interest rates—usually between 8% and 30%—with terms up to 60months on traditional monthly payment terms.

Who Can Qualify for Equipment Financing?

Good news is that most businesses can qualify for equipment financing due to its collateral nature.

However, how much you qualify and the terms are contingent on the value of the equipment your financing and your business’s financial performance.

If your credit rating is less than perfect you can still qualify, since the equipment acts as collateral.

In fact, equipment lenders are just as concerned with what’s securing their loan as with your borrowing history. So, if you’re planning on investing in a high-value (and value- retaining) piece of equipment with your small business equipment loan, then equipment lenders might be willing to work with you, even if your finances aren’t pristine.

How Do You Apply for Equipment Financing?

A business equipment loan application can be a simple process. You’ll likely need to provide your credit score and prove the financial health of your business with tax returns and bank statements. Since this is a collateralized loan, an invoice of the equipment you wish to finance will also be required.


Minimum Qualifications

● 6 Months in Business

● Minimum 500 FICO

● Invoice for equipment to purchase

● $120k Gross Annual Sales

Questions? Give us a Call: 866.757.3339