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Equipment Financing – Equipment Loans For Small Businesses

Need to get the equipment your small business needs as soon as possible? Don’t wait another minute – access online small business lending today to get the resources you need without breaking the bank.

What Is Equipment Financing?

Equipment financing is a type of business financing specifically intended to be used for business equipment. The term “equipment” includes virtually any physical item a business uses in the course of its operations, so it can be used for things like furniture, computers, ovens, vehicles, medical equipment, construction equipment, and other highly-specialized tools, just to name a few.

Types of Equipment Financing

Many different types of loans can be used to cover equipment purchases, including merchant cash advances, invoice financing, and microloans. If you are a small business owner, another option you may want to consider is an SBA loan. Funds from 7(a) loans, which are backed by the SBA, can be used for a wide variety of business expenses, including purchasing equipment. Businesses who are looking to make larger investments or purchase particularly expensive pieces of equipment may be interested in another type of SBA loan called a CDC/504 loan.

The Difference Between Equipment Financing and Equipment Leasing

The terms “equipment financing” and “equipment leasing” are sometimes used interchangeably, but be aware they aren’t exactly the same things. Equipment financing allows you to own the equipment at the end of the term, but with equipment leasing, you simply make monthly payments for the ability to use the equipment for a set amount of time. This makes leasing a more cost-effective option for equipment you only have a temporary need for or would become obsolete by the time it’s paid off. Equipment financing is better suited for equipment that is crucial to your long-term business operations.

It’s Easy To Apply For Small Business Equipment Loans

Step 1

Pre-Qualify Online

Just click the “Get Started” button below and pre-qualify for small business equipment financing.

Step 2

Approval in as little as 4 Hours

We’ll review your application and get back to you with the best financing options in as little as one day.

Step 3

Receive Same-Day Funding

Funds are automatically deposited into your business account. Plus, repayments are already set up so you can focus on running your company.

What Are the Advantages and Disadvantages of Equipment Financing?

Commercial equipment loans are a great way to make big purchases on essential business machinery. They lighten the financial load of an outright purchase, allowing you to invest in the future of your business without taking a big hit to your cash flow.

Still, you may be wondering: Is a small business equipment loan right for me?

Pros

Doesn’t require a minimum credit score or annual revenue to qualify.
Allows you to purchase essential equipment you otherwise couldn’t afford.
Has favourable interest rates, repayment terms, and total loan terms when compared to alternatives.
Easier to qualify for equipment financing because your new machinery is the collateral.
Save money by listing equipment financing as a tax deduction under Section 179.

Cons

This type of financing is strictly for equipment.
If you can no longer afford to pay the loan, the equipment gets collected as collateral.
Equipment that needs frequent replacing may increase debt.
If your equipment is prone to obsolescence, better opt for equipment leasing.

Why Credibly?

Equipment Finance Rates You Won’t Get Elsewhere

Get some of the most competitive business equipment loan rates that you won’t find at other alternative financing options. Our factor rates go as low as 1.09**.

We Believe in Small Businesses

With a record of helping over 30,000 small businesses across the U.S. and a TrustPilot rating of 4.8, Credibly is much more than just a lender—we’re your partner.

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