Equipment financing

Business equipment financing is funding you obtain to purchase or lease equipment, tools, technology or machinery you need to operate your business. With equipment financing, the item you’re interested in acquiring serves as collateral for your loan. This means if you’re unable to make your payments, your lender can seize the equipment to recoup their losses.

With this type of financing you’re able to fund the purchase of a piece of machinery, furniture, vehicle or other resource for your business—from commercial ovens, tractors and construction vehicles to computers, desks and office supplies.

Receive up to 100% of the equipment’s value

You can receive up to 100% of the equipment’s value through business equipment financing. For risky investments, such as items with a high rate of depreciation, lenders may require a 10- to 20-percent down payment.

The amount of funding you receive is determined by what your business qualifies for, as well as the price of the equipment you’re planning to purchase.

With most equipment financing programs, the equipment itself secures the funds. As a result, it’s easier to get equipment loans or leases even if you have bad credit.

Flexible rates and terms

Fast Capital 360’s lending partners offer equipment financing rates starting around 8% with terms that can range from 1-5 years. The length of your agreement will depend largely on the useful life of the item financed.

For instance, you can expect a longer term on a commercial equipment loan or lease if you’re financing a truck or piece of construction equipment versus computer equipment that will become obsolete within a few years.

Payments are made daily, weekly or monthly, depending on the specifics of your agreement.

*Terms can vary by lender and borrower qualifications

Pros

• Fast funding available
• Self-collateralizing
• Option to lease
• Ability to spread out the cost of your purchase over time

Cons

• Restricted to equipment, tools and machinery
• Down payment may be required

Equipment financing is right for businesses that have an opportunity to grow through the acquisition of a certain resource or tool. But the question remains: Should you lease or buy your business equipment? The route you choose will determine how you finance the purchase.

Business equipment loans are used to procure equipment you desire to own. This makes sense when you require materials you plan to use for 3 years or more. Durable machines like cash registers, refrigerators or commercial manufacturing tools are great examples of items worthy of an equipment loan.

You should consider leasing business equipment if the item you plan to finance will become outdated quickly, or you’re not in a position to provide a down payment.

When deciding if you should purchase or lease your business equipment, consider the following:

• How long will you need the equipment?
• What is your business’s current financial situation?
• Will the equipment become outdated quickly?
• Will you be able to maintain the equipment on your own

To give you a better idea of what equipment financing might cost, use our loan calculator to crunch the numbers and estimate your total cost of borrowing.

Exact qualifications vary by lender and the equipment being financed. But typically, to get equipment financing, you’ll need to meet certain requirements specific to time in business, annual revenue and personal credit score.

What you’ll need to qualify:

• 
  Time in business
  2+ years
• 
  Annual revenue
  $160K+
• 
  Credit score
  620+

To apply for equipment financing with Fast Capital 360, just tell us about yourself, your business and your funding needs. Then connect your bank account through our secured connection (or provide 4 months of bank statements). Submit a signed application and provide detailed information about the equipment you’re looking to acquire.

Details will vary depending on the type of equipment, but can include:

• Condition (i.e., new versus used)
• Number of miles or man hours the equipment has been operated
• Seller information (i.e., private seller or vendor)

Whether you’re financing an expensive piece of equipment that falls outside of your price range or the majority of your capital is invested elsewhere, a business equipment loan is an invaluable tool. Let us connect you with some of the best equipment financing companies to find the right funding option for you.

Applying is fast, easy–and most importantly–won’t impact your credit.