Find answers to the most common questions about financing business equipment, from approval timelines to tax benefits.
You can finance virtually any type of business equipment including manufacturing machinery, construction equipment, medical devices, restaurant equipment, technology and computers, vehicles and trucks, office furniture and fixtures, and specialized industry equipment. Both new and used equipment qualify, as long as it has a useful business life. We work with businesses across all industries to secure financing for equipment that helps them grow and operate efficiently.
The decision depends on your business needs and financial situation. Buying equipment through a loan means you own the asset, can claim depreciation, and build equity. It's ideal for equipment you'll use long-term. Leasing offers lower monthly payments, easier upgrades to newer technology, and potential tax advantages through deductible lease payments. It's better for equipment that becomes obsolete quickly. We'll analyze your specific situation, cash flow needs, tax position, and equipment type to recommend the best option for your business.
Equipment financing is one of the fastest business financing options available. Pre-qualification can happen within 24 hours with basic financial information. Full approval typically takes 2-5 business days once we receive all required documentation. For straightforward transactions with strong credit, funding can occur within one week. The equipment itself serves as collateral, which streamlines the approval process compared to unsecured loans. We work efficiently to get you the equipment you need without unnecessary delays.
Equipment financing offers significant tax advantages. Section 179 allows you to deduct the full purchase price of qualifying equipment in the year it's placed in service, up to $1,160,000 for 2023. Bonus depreciation lets you deduct an additional percentage of the cost. Lease payments are typically 100% tax-deductible as business expenses. Interest on equipment loans is also tax-deductible. These benefits can substantially reduce your effective equipment cost. We recommend consulting with your tax advisor to maximize these advantages based on your specific situation.
Equipment financing is more accessible than many other business loans because the equipment serves as collateral. Minimum credit scores typically start around 600, though better rates require 680+. We consider multiple factors beyond credit score including time in business (usually 2+ years preferred), annual revenue, cash flow, down payment ability, and the equipment's value and condition. Even businesses with challenged credit can often qualify, especially with a larger down payment or by financing newer equipment with strong resale value.
Down payment requirements vary based on several factors. Typically, expect 10-20% down for new equipment with strong credit. Used equipment may require 15-25% down. Businesses with excellent credit and strong financials may qualify for 100% financing with no down payment. Higher-risk situations or specialized equipment might require 25-30% down. The equipment type, age, condition, and resale value all influence down payment requirements. We work to minimize your upfront costs while securing competitive rates and terms.
Our financing experts are ready to provide personalized answers and guide you through the process.
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