Merchant Cash Advance
Merchant cash advances provide small businesses with an alternative from traditional bank loans. Business owners receive funds as a lump sum upfront from a merchant cash advance provider and repay the advance with a percentage of the business’s sales
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
MCA Program Guidelines
FICO Requirements
Minimum 450
Time in Business
3 Months
Funding Amount
$10,000 - $250,000
Terms
2 - 7 month
Background Limitations
Open Bankruptcy
Financial & Sexual Crimes
List Item Title
Item Subtitle
List Item Title
Item Subtitle
List Item Title
Item Subtitle
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
Step 1
Offer
Funding Application
3 Months of Business Bank Statements (ACH)
3 Months of Processing Statements (split)
Month to Date Statement
​
Item Subtitle
List Item Title
This is your item description. Use this space to add a description of the services, products, team members or any other items you want to highlight on your site. Have a lot to say? Easily turn any item into a full page by clicking ‘Create a page from this item’ in the edit panel.
Item Subtitle
List Item Title
This is your item description. Use this space to add a description of the services, products, team members or any other items you want to highlight on your site. Have a lot to say? Easily turn any item into a full page by clicking ‘Create a page from this item’ in the edit panel.