Loan Amount
Up to 100% of the value
Estimated Repayment Terms
1 - 5 years
Interest Rate
Starting @ 8%
Speed of Funding
As fast 2 days
Obtain the Tools You Need to Grow with Equipment Financing
Anything you need to run your business is essential to your success—from commercial ovens, tractors and construction vehicles to computers, desks and office supplies.
So when a critical piece of equipment fails, becomes outdated or you simply need more resources to support your growing team, the costs can add up—and quickly.
Through equipment financing, you can secure the tools you need without depleting your cash reserves.
How Equipment Financing Works
With an equipment loan, you’re able to finance a piece of machinery, furniture, vehicle or other tool or resource for your business. Doing so allows you to procure, and eventually own, the equipment you need to scale your operations and grow.
Receive Up to 100% of the Equipment’s Value
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.
You can receive up to 100-percent of the equipment’s value. If your lender determines that value will depreciate rapidly, or other factors—such as industry—make the investment riskier, a 10- to 20-percent down payment may be required.
With most equipment financing programs, the equipment itself secures the loan. As a result, equipment loans are easier to qualify for even if your credit score is less than perfect.
Flexible Terms
Typical equipment financing rates start around 8 percent 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 if your financing a commercial truck or piece of construction equipment, versus computer equipment that will become obsolete within a few years.
Payments are made monthly or weekly, depending on the specifics of your agreement.
Is Equipment Financing Right for Your Business?
Equipment financing is right for organizations that have an opportunity to grow through the acquisition of a business 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 three 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 put money down for a downpayment.
Loan vs. Lease: How to Know Which Equipment Financing Program is Right for You
When deciding if new business equipment should be purchased or leased, 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?
Deciding to lease or buy your business equipment can be a difficult decision to make. Weigh your options and consider all of your variables before making your choice. Be sure to recognize how each will affect your company’s present and future cash flow.
Consider equipment financing if:
- Your opportunity to work with a new customer requires increased production
- You need new or additional equipment but cannot finance the purchase with your current cash flow
How to Qualify for Equipment Financing
The minimum requirements most equipment finance lenders have for these loans are less strict than others, making them a great choice for small business owners with less than perfect credit.
But you must meet certain requirements specific to your time in business, annual revenue and personal credit score.
For example, a construction company seeking equipment financing for a new bulldozer with more than 2 years in business and an annual revenue just under $200K will likely qualify for equipment financing. As long as the owner of the construction business has a credit score above 600, qualifying for an equipment loan should be very straightforward.
Do You Qualify?
Based on previously approved borrowers, you’re likely to qualify if:
- You’ve been in business 2 years or more
- Your annual revenue is $160K or more
- You have a credit score of 620 or better
How to Apply for Equipment Financing
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. Understanding how to get equipment financing can provide peace of mind when trying to qualify for a loan.
Online applications make applying for business equipment financing even simpler. By applying through Fast Capital 360, for example, your business could be approved within hours and have the funds you need within 2 business days.
Step 1: Tell us about your business.
Fill out a few basic questions about your business so that we can connect you with the best lenders.
Step 2: Tell us about you.
We need to learn about you so we can determine your eligibility without impacting your credit score.
Step 3: Connect your bank account.
Your revenue data enables us to match you to funding opportunities at the speed of modern business.
Step 4: Get funded.
Funds can be deposited into your bank account as soon as the same day.
What Will an Equipment Business Loan Cost?
To give you a better idea of what equipment financing might cost, let’s use an example. In this scenario, your company is looking for restaurant equipment financing to buy a new oven.
The oven you want to purchase is $10,000. Your lender is willing to offer 100-percent of the equipment value at a 15 percent interest rate.
If you’re paying this amount monthly over 3 years, you’ll make 36 payments totaling $319.45. By the end of your loan, you’ll have paid an additional $1,500.
Although interest rates vary from lender to lender, this example should give you an idea of whether or not your business can afford to take on an equipment loan.
Amount Borrowed:
$10,000
Interest Rate:
15%
Term:
36 Months
Monthly Payment:
$319.45
Total Repayment:
$11,500.00
Cost of Loan:
$1,500.00
Explore Equipment Loan Use Cases
Our partners have provided equipment financing to a diverse group of businesses including professional DJs, construction companies, gyms, restaurants and farms.
Here are just a few examples of how you can run and grow your business with equipment financing split into two categories.
Heavy Equipment Financing
- Truck and equipment financing
- Farm equipment financing
- Gym equipment financing
- Construction equipment financing
- Automotive equipment financing
- Drilling equipment financing
Commercial Equipment Financing
- Packaging equipment financing
- Restaurant equipment financing
- Laundry equipment financing
- Car wash equipment financing
- Dental equipment financing
- Medical equipment financing