EQUIPMENT FINANCING
TO LOWER COSTS AND RAISE REVENUEEquipment financing is self-secured, which means that the equipment itself acts as collateral for the loan. The price of that equipment dictates the amount and terms of your equipment financing, and you won’t need to put up any extra collateral. We’re able to offer multiple equipment financing agreements concurrently.
The self-collateralized nature of equipment financing can make them slightly easier for some business owners to qualify for. Since the equipment also provides security for the lender (the lender can simply seize it and liquidize it for cash to recoup their losses in the event of a default), equipment financing rates and terms are usually considerably more favorable than, say, an unsecured business loan. Equipment also may be deductible under IRS section 179, which might help maximize tax breaks!
Businesses that can’t afford a large, upfront expense or don’t want to deplete their cash with such a huge one-off purchase might want to pursue equipment financing, as well as businesses seeking to own their equipment outright as opposed to an equipment lease.
Businesses that have at least a 600 FICO score, $10,000 in monthly revenue, and 2 years in business can qualify for our equipment financing programs. We finance most equipment types, but only those sold and serviced by reputable professional vendors (equipment sold by private parties are not eligible for financing). All that you would need to apply besides the normal credit application is an equipment invoice and a detailed description of how the equipment benefits the business (e.g. how it would increase revenue, or how it would reduce costs).