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Lending

Equipment Financing: Funding the Tools Your Business Runs On

From commercial ovens to work trucks to servers, the equipment your business depends on is often its largest up-front cost. Equipment financing spreads that cost over the useful life of the asset.

Secured by the asset itself

Equipment loans and leases are typically secured by the equipment they fund. Because the lender can look to the asset as collateral, this financing is often more accessible than an unsecured loan and can be available to younger businesses.

Loan vs. lease

  • A loan lets you own the equipment outright once it is paid off — a good fit for gear with a long, stable life.
  • A lease can lower up-front cost and make it easier to upgrade — useful for technology that dates quickly.

Run the payment first

Before you commit, estimate the monthly payment and the total cost so you can be sure the equipment will earn more than it costs to finance.

Estimate a payment with our business calculators, then find your funding fit.

Filed under Lending

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