Find the Lowest Rates on Equipment Financing

Updated on September 19, 2020

What is Equipment Financing?

Equipment financing is a type of business loan that provides capital specifically for the purpose of purchasing new or used equipment—whether vehicles, machinery, or technology. You can access equipment loans equal to up to 100% of the value of the equipment you’re looking to purchase. These loans are then paid back over time, with interest.

Similar to invoice financing, business equipment financing is a form of asset-based financing, in which the equipment itself serves as collateral for the loan. For this reason, equipment financing is often easier to qualify for than other types of small business loans. Along these lines, equipment loans can be great options for startups, or businesses with average or poor credit scores.

Equipment Financing Details

MAX. LOAN AMOUNT

Up to 100% of equipment value

LOAN TERMS

Five to six years

INTEREST RATES

4% to 40%

SPEED

As fast as 2 days

Pros and Cons of Business Equipment Financing

When it comes down to it, if you’re looking for funding to purchase equipment for your business, there’s no doubt that equipment financing is a great option. In fact, this type of financing can often offer the most ideal rates and terms for equipment-specific funding.

With this in mind, however, an equipment loan will not always be the best solution for every business and situation, and therefore, it’s worth breaking down the pros and cons of equipment financing so that you can determine whether or not it’s right for your needs.

Pros

Quick funding for equipment purchases
Equipment itself serves as collateral on the loan
Easier to qualify for than other business loans
Affordable interest rates
Limited paperwork and fast application process

Cons

Equipment could be obsolete by the time the loan is fully repaid
May require a down payment
Only applicable to businesses who need to purchase equipment