Finance the machinery, vehicles or systems your business runs on. The equipment itself serves as collateral, which usually means larger amounts and better terms than unsecured funding.
The asset being purchased secures the financing. Because there is real collateral behind the transaction, equipment financing typically supports larger amounts and longer terms than unsecured working capital, and it often reaches businesses that would not qualify for the same amount otherwise.
Terms are usually matched to the useful life of the asset, so you are not still paying for a machine years after it has stopped earning.
Most revenue-producing business equipment qualifies, new or used, from a dealer or a private sale.
Financing builds toward ownership: you hold the asset at the end and carry its residual value. Leasing generally keeps the monthly payment lower and makes it easier to replace equipment that ages quickly, but you own nothing at the end of the term.
The practical test is how fast the equipment becomes obsolete. A truck that will run productively for a decade usually favors ownership. Diagnostic equipment on a short technology cycle often favors leasing. This is a decision worth running past your accountant, since the tax treatment differs.
Yes. Used equipment is commonly financed, including private-party purchases, though age and condition affect the term and amount available.
Some transactions are financed in full and others call for a down payment, depending on the equipment, its age, and your business profile.
The financed asset is the primary collateral. Depending on size and profile, a personal guarantee may also be required — the terms sheet will state this plainly.
