Equipment represents one of the largest capital expenditures for growing businesses. Paying cash upfront for major equipment purchases can drain your working capital and limit your ability to invest in other growth areas.
How Equipment Financing Works
Equipment financing lets you acquire the tools, machinery, vehicles, or technology your business needs without paying the full cost upfront. The equipment itself serves as collateral, which makes approval easier and rates more competitive.
You make fixed monthly payments over a set term, typically two to seven years, and at the end of the term, you own the equipment outright.
Benefits of Financing vs. Buying Outright
Preserve working capital. Keep your cash reserves for operations, emergencies, and other investments.
Tax advantages. Section 179 deductions may allow you to deduct the full purchase price of financed equipment in the year of purchase. Consult your accountant for specifics.
Stay current. Technology and equipment evolve rapidly. Financing lets you acquire the latest equipment without massive capital outlays.
What You Can Finance
Almost any business equipment qualifies:
- Construction and manufacturing machinery
- Medical and dental equipment
- Restaurant and commercial kitchen equipment
- Commercial vehicles and fleet vehicles
- Technology hardware and software systems
- Office furniture and fixtures
Equipment Financing Terms
| Factor | Typical Range |
|---|---|
| Loan Amount | $5,000 to $5,000,000 |
| Term Length | 2 to 7 years |
| Down Payment | 0% to 20% |
| Interest Rate | 5% to 30% |
| Approval Speed | 3 to 7 business days |
| Credit Score | 575+ |
The right financing structure depends on the equipment type, amount, and your business profile. Compare this with other options in our financing model guide.
The IRS Section 179 page details current deduction limits for equipment purchases.
Finance your equipment today through Arkadian Capital's lender network.