New or used equipment, loan or lease
Equipment financing for small business
Vehicles, construction equipment, furniture, technology: whatever the tools of your trade, equipment financing lets you get them now and pay over time while keeping your cash in the business.
What is equipment financing?
Equipment financing lets your business buy or lease the equipment it needs now and pay for it over time, instead of saving for a large lump sum.
Because the equipment itself usually serves as collateral, equipment financing is often easier to qualify for than an unsecured loan, and the term is typically matched to how long the equipment will be useful. You keep your cash for payroll, inventory, and growth while the equipment starts earning money right away.
Not sure whether to buy or lease? Read equipment leasing vs. financing.
What equipment can you finance?
- New or used equipment: both qualify
- Vehicles and trucks
- Construction equipment and machinery
- Furniture and fixtures
- Technology: computers, phone systems, servers, and even software
- Loan or lease: get the best price from your vendor with the option to buy or lease
One exception: equipment you already own can't be leased back.
Equipment loan vs. equipment lease
| Equipment loan | Equipment lease | |
|---|---|---|
| Ownership | You own the equipment from the start | The lessor owns it during the lease |
| End of term | Keep the equipment, no further payments | Return, renew, or buy it, depending on the lease |
| Best for | Equipment with a long useful life | Technology you expect to upgrade |
| Taxes | Purchases may qualify for Section 179 expensing | Lease payments may be deductible as an expense |
Tax treatment depends on your situation; ask your tax professional.
Equipment financing requirements
- 550 minimum FICO credit score
- 1+ year in business
- $10,000 minimum monthly gross sales
Financing ranges from $10,000 to $20,000,000. The equipment's type, age, and value, your credit, and your time in business all affect the amount and the terms offered.
What you'll need to apply
- A business application
- Last 6 months of business bank statements
- An invoice or quote for the equipment
- Your most recent business tax return
How equipment financing works
01
Get a quote from your vendor
Choose the equipment and get an invoice or quote with the price, new or used.
02
Check your options
Start the 60-second form. A specialist matches your business and the equipment with loan or lease programs that fit.
03
Review your terms
You see the payment, term, and total cost in writing, and choose between buying and leasing where both are offered.
04
The vendor gets paid
After you sign, the funding provider typically pays the vendor directly and your equipment is delivered.
Is equipment financing right for your business?
It tends to fit when
- You need specific equipment to take on more work or replace worn-out gear
- You want to keep cash for operations instead of paying up front
- The equipment will earn or save more than its payment
Consider something else when
- You need general-purpose funds, not equipment; see working capital
- You need a lump sum for several uses; see business term loans
- The equipment will be obsolete long before the payments end
Related guides
Frequently asked questions
Q01What types of equipment can I buy or lease with my funds?
The list is long, spanning vehicles, construction equipment, furniture and fixtures, and technology like computers, phone systems, and servers. Even software qualifies. Equipment you already own can't be leased back.
Q02Which equipment loan option is best for me?
It depends mostly on the equipment. Long-life equipment often suits a loan, while technology you expect to upgrade may suit a lease. A specialist can walk you through the programs available for your purchase.
Q03Why consider an equipment loan instead of paying all at once?
Operating without key equipment often means compromising productivity or quality. Financing lets you get the equipment now and keep your cash for operations, instead of waiting to save up.
Q04Can I finance used equipment?
Yes. Both new and used equipment qualify. The equipment's age, condition, and value can affect the amount and term offered.
Q05Can I get equipment financing with bad credit?
Our equipment program considers credit scores from 550, with at least 1 year in business and $10,000 in monthly gross sales. Because the equipment secures the financing, it is often more accessible than an unsecured loan.
Q06What is Section 179?
Section 179 of the tax code may let a business deduct the cost of qualifying equipment in the year it is placed in service instead of depreciating it over time. Rules and limits apply, so ask your tax professional.
Sources and further reading
- Publication 946, How to Depreciate Property (Section 179), Internal Revenue Service
- Uniform Commercial Code Article 9: Secured Transactions, Legal Information Institute, Cornell Law School
- 504 loans, U.S. Small Business Administration
Financial disclaimer: This page is for general information and is not financial, legal, or tax advice. SmallByzLoans is a funding marketplace, not a lender. Approval, amounts, rates, and terms are set by each funding provider and are subject to underwriting.
Get the gear. Keep your cash.
Start with the 60-second form. No cost to check your options, and no hard credit pull to start.