Equipment Financing

How it works

Equipment financing is collateralized by the asset being purchased — a truck, kitchen equipment, machinery, medical devices — which means the lender's risk is tied to something with resale value, not just your revenue history.

Because the equipment itself backs the loan, this is often one of the more accessible products for newer businesses or those with a shorter credit history, and terms are typically matched to the useful life of the equipment.

Funds are usually sent directly toward the purchase or lease, and in many cases the equipment can be repossessed in lieu of further collection if the loan goes unpaid, which is part of why rates tend to run lower than unsecured products.

Best for

• Purchasing a vehicle, trailer, or fleet addition
• Kitchen, medical, or manufacturing equipment
• Replacing aging equipment before it fails
• Preserving cash by financing rather than paying outright

Requirements

• Time in business: 6+ months
• Monthly revenue: reviewed alongside the equipment quote or invoice
• Credit profile: all credit profiles considered; equipment serves as collateral

Is this right for you?

Equipment Financing FAQ