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Is Equipment Financing right for me?

As opposed to asking for capital outright, equipment loans are more secure than others, and lenders are sometimes more willing to work with you. This type of financing can also help you get the new equipment for your business right away.

Business equipment loans help business owners acquire equipment that would normally be too expensive to buy with cash. This is a great way for companies that want to grow their revenues with a certain tool or piece of machinery.

Loan Amount Up to $5,000,000
Loan Term From 12 - 72 months
Interest Rate 7.5% - 45%
Payment Frequency Monthly
Time to Funds 2 - 4 weeks
Benefits
  • Relatively easy to obtain
  • Adds to net value
  • Leads to increased revenue
Drawbacks
  • Only can be used for purchase of equipment
  • UCC filing against businesses

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Qualifying

A business equipment loan is very similar to an auto loan, where the purchased item itself acts as collateral. Because of this, qualifying for an equipment loan can be relatively easy. Approvals are typically based on credit score, years in business, financial history and value of the equipment.

What is an Equipment Loan?

Equipment financing is used exclusively to acquire business-use equipment. Because every industry has it’s own type of equipment, the types of equipment loans are diverse. For nearly every type of equipment you can think of there’s going to be a lender that finances that specific equipment.

What Types of Businesses is it Good For?

Every type of equipment and every type of industry, but here are a couple examples. In the construction industry, there are lenders that offer equipment financing for heavy machinery. In agriculture, there are lenders that specifically help small farmers.

How Much Will Equipment Financing Cost?

Equipment Loan Calculator

Equipment financing interest rates range from seven to forty-five percent. With equipment financing, the purchased equipment itself is used as collateral for the loan. There are also lenders who will lend on application only as long as collateral is available and a down payment of 50% is available as well.

Most of the time, the immediate ROI from the equipment pays for the loan earlier than expected, making it an awesome financing option.

Equipment financing may also be available under the SBA 7(a) loan program. See our SBA 7(a) section for additional detail.

Why Use Lendio?

Lendio’s mission is to empower your small business by making small business loans simple through options, speed, and trust. Whether you are looking for an acquisition loan or equipment loan, Lendio offers hundreds of different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.

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More Reading

What is an Equipment Loan?

Equipment Loan or Equipment Lease?