WHAT IS EQUIPMENT FINANCING?

The business equipment financing option is very similar to term business loans, the only difference being it’s specifically for purchasing equipment. Because equipment financing is so advantageous, small business owners can purchase what they need with a low or no down payment, easy repayment terms, and save money with competitive rates.

In general, equipment loan alternative lenders and most equipment financing lenders will use the asset being purchased as collateral, so they’re protected; thus, the rate is lower and could increase the loan amount they’re willing to give. All of these points can help cash flow when you need to purchase equipment for your business.

Typically, the small business can get up to 100% of the loan amount needed to purchase equipment and equipment leasing. In some cases, a down payment and minimum credit score may be required for equipment financing.