What is Equipment Leasing?
With equipment leasing, instead of borrowing money to purchase the equipment outright, you are paying a fee to borrow the equipment from the leasing company who maintains ownership of the equipment while you use it. This is a great option for businesses that exchange or upgrade equipment frequently or ones that do not have the capital to pay the down payment required for a loan. It’s also more likely to cover additional soft costs associated with delivering and installing the equipment.
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Lease arrangements can vary depending upon your company’s needs and if you want to own the equipment, some leasing companies will offer the option of purchasing the equipment at the end of your term.
What is an Equipment Loan?
An equipment loan is a loan taken out with the intended purpose of purchasing equipment. Typically, the equipment secures the loan meaning that if you can no longer afford to pay the loan, the equipment gets repossessed as collateral.
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These loans are perfect for business owners that need a piece of equipment long-term but can’t afford to make the purchase upfront as the lending institution typically agrees to deploy the majority of the capital, so that you can pay in periodic phases. While the arrangement will ultimately cost more than if you had bought the equipment upfront, equipment loans allow you to receive the equipment you need, while leaving you with sufficient working capital.
Food & Beverage Companies
Restaurant Equipment
Food Trucks
Restaurants, bars, cafes & bakeries, pizza shops, breweries, mobile kitchens & more.
Service Companies
Barber Shop, Salon,
Doctor's Office & Hospital Equipment
Hair dressers, wellness centers, barber shops, medical services, beauty salons & more.
Construction Companies
Construction & Trucking Equipment
Electricians, plumbers, manufacturers, specialty tradespeople, & more.
Retailers
Convenience stores, clothing stores, warehouse retailers, specialty stores & more.
Equipment Financing Details
Qualifying Criteria
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670+ personal credit score for startups
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580+ personal credit score for 2+ years in business
Required Items
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Signed one page funding application
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3-5 most recent months company bank statements
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Invoice or quote for the equipment
Advantages & Disadvantages
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Allows you to access equipment you could otherwise not afford, and it generally carries lower monthly payments than many other flexible financing options.
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The equipment is often collateralized, making it easier to qualify for than most unsecured financing options. In other words, you do not need as strong of a credit score or annual revenue to qualify.
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The interest rate and loan terms are often more favorable than many alternative financing options.
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Buying the equipment outright will always be less expensive than financing it and equipment that needs to be replaced frequently may cause large amounts of debt.