Equipment Financing

We offer Equipment Financing options to help you acquire the equipment you need to grow your business

Free Consultation – No Obligation

Are All Equipment Leasing Options the Same?

What Do You Need To Qualify?

What Is Equipment Financing?

Equipment Financing is used to fund the equipment purchases for your business. Financing takes the form of either a loan or a lease. The main difference between the two is, with a loan you own the asset during the life of the loan, whereas a for a lease, the lending company owns the asset during the life of the lease.

That said, we prefer the benefits of equipment leasing which allows you to completely write off the entire monthly lease payment (as opposed to just the interest) while providing you the option of purchasing the equipment at the end of the lease.

How does Equipment Financing Work?

Similar to leasing a car, equipment leasing involves purchasing the equipment and paying off the lease on a monthly basis until the end of the leasing term.

  • You choose the equipment you want and provide invoices from the vendor, making sure to include all shipping, installation, and setup fees.
  • You fill out a simple lease application specifying the term and type of lease you prefer.
  • After your lease is approved, we will purchase the equipment and have it delivered and installed (if applicable) at a time specified by you.
  • You make fixed monthly payments for the term you have chosen, enjoying the benefits of the equipment as though you own it.


At the end of the lease, as written in the lease contract, you have a few options:

  • Return the equipment
  • Purchase the equipment for its Fair Market Value
  • Purchase the equipment for the equivalent to 3 monthly payments
  • Purchase the equipment for 10% of the cost
  • Purchase the equipment for $1
  • Extend the leasing agreement for another term


Another option, if you currently own the equipment, is to sell the equipment to our leasing company for an immediate cash injection and then lease the equipment back and pay it off as a normal lease.

Which option you choose depends on your need and the life expectancy of the equipment you are financing.

How Can I Use My Equipment Financing Funds?

You can use the funds for pretty much any equipment related to your business enterprise:

  • Heavy machinery
  • Tools
  • Point-of-sale terminals
  • Construction equipment
  • Furniture
  • Computer systems
  • Semi-trucks and repair garage systems
  • Medical equipment
  • Cannabis Manufacturing/Lab Equipment

How Can I Qualify For Equipment Financing?

The longer you’ve been in business, the higher your credit score, the better your cash flow and the more collateral you have, the better will be your financing terms as well as the amount of financing available to you. That said, we have affiliates that will overlook either of those attributes.

In general, you must have meet the following minimum guidelines:

  • 2 Years in Business*
  • $150k in Annual Revenue
  • A FICO score of 650

 

*we do have programs for startups with a financing cap of $50k

What Are The Advantages of a Equipment Financing?

  • Tax Advantages

Perhaps the most significant advantage to Equipment Leasing is the asset is not on your balance sheet It’s on the balance sheet of the lender. So you can write off 100% of the lease for the duration of the term

  • Conservation of Credit Lines

Leasing acts as an additional credit line, leaving existing credit lines available for other uses.

  • Fixed Payments

With payments fixed throughout the duration of the lease, you will never have to worry about an increase.

  • Savings

A lease is paid for with before tax dollars rather than after tax dollars.

  • Avoidance of Equipment Obsolescence

Leasing protects you against equipment obsolescence and allows you the freedom to upgrade or add equipment as your needs change.

What Are The Disadvantages of  Equipment Financing?

  • Higher cost than a traditional term loan
  • No ownership or equity in the leased asset unless you ultimately purchase it
  • Limited accessibility for new business owners
    • Depending on the amount required, your business will have to be in existence for at least 2 years

Pros

Cons

How to Apply for Equipment Financing?

  • You choose the equipment you want and provide invoices from the vendor, making sure to include all shipping, installation, and setup fees.
  • You fill out a simple lease application specifying the term and type of lease you prefer.
  • You’ll need to provide the following:
    • Equipment Invoice or Quote
    • 3 months of bank statements
    • If Financing > $300k
      • 3 years of annual financials
      • Current interim statements
      • Business debt schedule
  • After your lease is approved, we will purchase the equipment and have it delivered and installed (if applicable) at a time specified by you.

What If I am Declined for Equipment Financing?

If you are declined for Equipment Financing because you have been in business for < 2 years or have poor credit we have other financing options to assist with your equipment purchase. Take a look at our homepage for more information.

What is Equipment Financing?

Equipment Financing is used to fund the equipment purchases for your business. Financing takes the form of either a loan or a lease. The main difference between the two is, with a loan you own the asset during the life of the loan, whereas a for a lease, the lending company owns the asset during the life of the lease.

 

That said, we prefer the benefits of equipment leasing which allows you to completely write off the entire monthly lease payment (as opposed to just the interest) while providing you the option of purchasing the equipment at the end of the lease.

How does Equipment Financing Work?

Similar to leasing a car, equipment leasing involves purchasing the equipment and paying off the lease on a monthly basis until the end of the leasing term.

  • You choose the equipment you want and provide invoices from the vendor, making sure to include all shipping, installation, and setup fees.
  • You fill out a simple lease application specifying the term and type of lease you prefer.
  • After your lease is approved, we will purchase the equipment and have it delivered and installed (if applicable) at a time specified by you.
  • You make fixed monthly payments for the term you have chosen, enjoying the benefits of the equipment as though you own it.

 

At the end of the lease, as written in the lease contract, you have a few options:

  • Return the equipment
  • Purchase the equipment for its Fair Market Value
  • Purchase the equipment for the equivalent to 3 monthly payments
  • Purchase the equipment for 10% of the cost
  • Purchase the equipment for $1
  • Extend the leasing agreement for another term

 

Another option, if you currently own the equipment, is to sell the equipment to our leasing company for an immediate cash injection and then lease the equipment back and pay it off as a normal lease.

 

Which option you choose depends on your need and the life expectancy of the equipment you are financing.

How can I use my Equipment Financing Funds?

You can use the funds for pretty much any equipment related to your business enterprise:

  • Heavy machinery
  • Tools
  • Point-of-sale terminals
  • Construction equipment
  • Furniture
  • Computer systems
  • Semi-trucks and repair garage systems
  • Medical equipment
  • Cannabis Manufacturing/Lab Equipment

How can I qualify for Equipment Financing?

The longer you’ve been in business, the higher your credit score, the better your cash flow and the more collateral you have, the better will be your financing terms as well as the amount of financing available to you. That said, we have affiliates that will overlook either of those attributes.

In general, you must have meet the following minimum guidelines:

  • 2 Years in Business*
  • $150k in Annual Revenue
  • A FICO score of 650

 

*we do have programs for startups with a financing cap of $50k

What are the advantages of a Equipment Financing?

  • Tax Advantages

Perhaps the most significant advantage to Equipment Leasing is the asset is not on your balance sheet It’s on the balance sheet of the lender. So you can write off 100% of the lease for the duration of the term

  • Conservation of Credit Lines

Leasing acts as an additional credit line, leaving existing credit lines available for other uses.

  • Fixed Payments

With payments fixed throughout the duration of the lease, you will never have to worry about an increase.

  • Savings

A lease is paid for with before tax dollars rather than after tax dollars.

  • Avoidance of Equipment Obsolescence

Leasing protects you against equipment obsolescence and allows you the freedom to upgrade or add equipment as your needs change.

What are the disadvantages of a Equipment Financing?

  • Higher cost than a traditional term loan
  • No ownership or equity in the leased asset unless you ultimately purchase it
  • Limited accessibility for new business owners
    • Depending on the amount required, your business will have to be in existence for at least 2 years

Pros and Cons of Equipment Financing

Pros

Cons

How to apply for Equipment Financing?

  • You choose the equipment you want and provide invoices from the vendor, making sure to include all shipping, installation, and setup fees.
  • You fill out a simple lease application specifying the term and type of lease you prefer.
  • You’ll need to provide the following:
    • Equipment Invoice or Quote
    • 3 months of bank statements
    • If Financing > $300k
      • 3 years of annual financials
      • Current interim statements
      • Business debt schedule
  • After your lease is approved, we will purchase the equipment and have it delivered and installed (if applicable) at a time specified by you.

What if I am declined for Equipment Financing ?

If you are declined for Equipment Financing because you have been in business for < 2 years or have poor credit we have other financing options to assist with your equipment purchase. Take a look at our homepage for more information.

Equipment Financing Amount, Rate, Term and Time to Fund

Frequently Asked Questions

How does Equipment Financing compare to other Small Business Loan options?

Financing TypeFinancing AmountInterest RateTermTime to Fund
Accounts Receivable Financing$10k – $10M (advance rate of up to 90%)1.25% – 3% p/mo3 months – 5 years1 – 3 business days
Business Line of Credit$5k – $1MStarting at 2% p/mo12 – 36 months7 – 14 days
Equipment Financing$10k – $25M1% – 4% p/mo12 – 72 months1 – 3 business days
SBA 7a Loan$350k – $5M11.25% – 13.25% fixed5 years – 25 years30 – 45 days
Supply Chain Financing$250k – $25M2% – 3% p/mo30 – 150 days (re-usable)2 – 3 weeks
Unsecured Business Line of Credit$5k – $100k1% – 4% p/mo1 – 2 years1 – 3 business days
Equipment Financing
Financing Amount$10k – $25M
Interest Rate1% – 4% p/mo
Term12 – 72 months
Time to Fund1 – 3 business days
Accounts Receivable Financing
Financing Amount$10k – $10M (advance rate of up to 90%)
Interest Rate1.25% – 3% p/mo
Term3 months – 5 years
Time to Fund1 – 3 business days
Business Line of Credit
Financing Amount$5k – $1M
Interest RateStarting at 2% p/mo
Term12 – 36 months
Time to Fund7 – 14 days
SBA 7a Loan
Financing Amount$350k – $5M
Interest Rate11.25% – 13.25% fixed
Term5 years – 25 years
Time to Fund30 – 45 days
Supply Chain Financing
Financing Amount$250k – $25M
Interest Rate2% – 3% p/mo
Term30 – 150 days (re-usable)
Time to Fund2 – 3 weeks
Unsecured Business Line of Credit
Financing Amount$5k – $100k
Interest Rate1% – 4% p/mo
Term1 – 2 years
Time to Fund1 – 3 business days

Can I use real estate to secure financing?

Yes, if you have poor credit, various types of real estate can be used as collateral towards your equipment purchase. Typical real estate assets include:

  • Commercial
  • Residential
  • Owner/Tenant Occupied
  • 1st, 2nd, 3rd position (up to 70% total loan to value)
  • Multi/Single Family
  • Agriculture
  • Nationwide (with the exception of primary residence in Texas)
  • NO RAW LAND

Can I use other hard assets to secure financing?

Yes, if you have poor credit we can use other hard assets as collateral towards your equipment purchase. Typical assets include:

  • construction equipment
  • agricultural equipment
  • machine shop tools
  • any other hard asset with > 25k of forced liquidation value

Ready to take the next step and apply for Equipment Financing?

Free Consultation – No Obligation

Give us a call to see how we can help your business