What Equipment Financing Is
Equipment financing is funding specifically for business equipment—vehicles, machinery, technology, and tools. Because the equipment is tangible, lenders can often approve deals even when a business doesn’t qualify for larger unsecured loans.
Equipment Loan vs Equipment Lease
- Loan: you own the equipment (often after payoff), depreciation may apply.
- Lease: you rent with a buyout option or return at end; payments may be lower.
Common Requirements
- Equipment quote/invoice and vendor information.
- Basic business docs and bank statements.
- Credit profile and time in business (varies by lender).
When Equipment Financing Is a Great Fit
- You need a vehicle, truck, or machine to produce revenue.
- You want to preserve cash instead of paying upfront.
- You prefer a payment tied to a specific asset (clean accounting).
Compare with Other Options
If the funding need is broader than equipment, compare with a term loan or line of credit.
Note: Educational content only—not financial advice.
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