Equipment Financing

Equipment financing allows your business to access capital by using equipment as collateral. This option is well-suited for companies looking to purchase, replace, or upgrade equipment, or for businesses that already own valuable assets and want to leverage them for working capital. The equipment itself secures the financing, helping keep rates competitive and approvals efficient.

How Equipment Financing Works

• Financing can be obtained by placing a lien on equipment you already own, allowing you to unlock capital for business use.

• Financing can also be structured by placing a lien on equipment you plan to purchase, with funds used directly for acquisition.

• In both cases, the equipment serves as collateral, enabling faster approvals and more favorable terms.

What Determines Rates and Approval

Pricing and eligibility are evaluated based on:

• Age and condition of the equipment

• How easily the equipment can be resold in the market

• Your personal and/or business credit profile

• Your business’s ability to support repayment

Questions to Consider

Before pursuing equipment financing, consider:

• Do you currently own equipment with meaningful value?

• What is the age and overall condition of that equipment?

• Are you planning to purchase new or used equipment?

• Is the equipment liquid and in demand within the resale market?

Documentation Typically Required

To move forward, lenders usually request:

• Year-to-date bank statements and financials

• Tax returns from the past two years

• A current debt schedule

• Equipment appraisals or valuation documents

Helpful Things to Know

• Equipment financing can fund up to 100% of the equipment’s value, depending on the asset and profile.

• This type of financing may offer tax advantages, including depreciation and deductions—using a tax calculator can help estimate potential savings in the first year.