Equipment Financing

Why Use an Equipment Financing?

 

Approval Amount: Up to 100% of Equipment Value

Repayment Structure: Monthy

Term Length: 24-84 months

Interest Rates: 3%-45%

Time to Funding: 2-5 days


Pros: 

  • Equipment Serves as Collateral
  • Simple Approval Process
  • Soft Costs Such as Shipping/Installation Can Be Financed
  • Available for Start-Up Businesses
  • Tax Deductible- Section 179

Cons: 

  • Interest Rates Depend on Credit and Time in Business
  • Down Payments Can Deplete Cash on Hand- Typically 10%-20% of Equipment Cost. 






Equipment Financing is when a bank or lender pays your vendor or private party seller for new or used equipment for your business. You can finance all types of equipment including computers, machinery, vehicles and much more. 


 

Leasing v. Financing Equipment 

Both are tax deductible but in different ways. Typically you can write of the entire lease payment since the bank owns the equipment and it is simply another business expense. The advantage to financing the equipment is that you can write off the entire value of the equipment (up to $500k) in one calendar year with section 179. 


*Consult with your tax professional about which one best suits your business needs. 

Compare and Shop equipment financing