What types of equipment can I finance?
Virtually any business equipment qualifies — restaurant and commercial kitchen equipment, heavy construction machinery, medical devices, printing presses, HVAC systems, vehicles, trailers, forklifts, manufacturing equipment, and technology. If it has useful business life and a clear value, it qualifies.
How is equipment financing different from an MCA?
Equipment financing is secured by the equipment itself as collateral, which often means lower rates and longer terms than an MCA. The equipment serves as its own collateral, so personal assets are typically not at risk. MCAs are unsecured and faster but carry higher cost of capital.
Do I need perfect credit to finance equipment?
No. Equipment financing is more accessible than traditional bank loans because the equipment itself reduces lender risk. Business owners with credit scores as low as 550 have qualified, particularly for lower loan amounts or newer businesses.
Can I finance used equipment?
Yes. Many lenders will finance used equipment up to 10 years old, sometimes older for well-maintained machinery. The loan amount is typically based on a percentage of the equipment's current appraised value.
How fast can equipment financing close?
Simple equipment loans under $150,000 often close in 2–5 business days. Larger transactions or complex machinery may take 1–3 weeks depending on appraisal and documentation requirements.
Can a new business finance equipment?
Startups under 2 years old face more limited options but can often qualify for equipment financing specifically — particularly if they can provide a down payment of 10–20% and the equipment has strong resale value.
What is the typical term length for equipment financing?
Terms typically range from 24 to 84 months (2–7 years), aligned with the useful life of the equipment. Shorter-lived equipment like technology gets shorter terms; heavy machinery often qualifies for longer terms.
Is equipment financing the same as an equipment lease?
No. Equipment financing means you own the equipment outright after the final payment. An equipment lease means you are renting it — you may have an option to purchase at the end, or you return it. Financing typically has tax advantages through Section 179 depreciation deductions.
What documents do I need to apply?
Typically: 3 months of business bank statements, an equipment invoice or quote from the vendor, government-issued ID, and a completed application. Larger loans may require 2 years of business tax returns and a balance sheet.
Can I finance equipment I already own?
Yes — this is called a sale-leaseback. You sell the equipment to a lender for its appraised value and receive a cash injection, then lease it back and continue using it. It is a way to unlock capital tied up in existing assets.