Equipment Financing: Acquire the Tools Your Business Needs
Get the machinery, vehicles, technology, and equipment your business needs without a large upfront investment. Our AI matches you with the right equipment financing solution.
Equipment as Collateral
The equipment itself typically serves as collateral, making financing easier to qualify for than many unsecured loans.
Equipment as Collateral
Easier to qualify for than unsecured loans
Flexible Terms
Choose from loans or leases based on your needs
Tax Benefits
Potential deductions for equipment purchases
What is Equipment Financing?
Equipment financing is a funding solution that helps businesses acquire machinery, vehicles, technology, or other equipment without paying the full cost upfront. Instead of depleting your working capital, equipment financing allows you to spread the cost over time while immediately putting the equipment to productive use.
The equipment itself typically serves as collateral for the financing, which often results in more favorable terms and easier qualification compared to unsecured loans. This makes equipment financing accessible to businesses with various credit profiles and operating histories.
Key Characteristics of Equipment Financing
- Equipment serves as collateral
The financed equipment itself secures the funding, reducing risk for lenders
- Multiple structure options
Choose between loans for ownership or leases for lower payments and flexibility
- Fixed payment schedules
Predictable monthly payments help with budgeting and cash flow management
- Potential tax advantages
Section 179 deductions, depreciation benefits, or lease payment deductions
Equipment Financing Market
The equipment financing industry continues to grow, with over $1 trillion in equipment financed annually in the United States. This growth reflects businesses' increasing need to acquire and upgrade equipment while preserving capital for other operational needs.
78%
of businesses use financing for equipment
$250K
average equipment loan amount
70%
approval rate vs. traditional loans
How Our AI Finds Your Perfect Equipment Financing
Lendec's proprietary AI technology analyzes your business profile and equipment needs to match you with the right financing solution.
Equipment & Business Analysis
Our AI analyzes your equipment needs, industry, time in business, and financial profile to understand your unique requirements.
Lender Matching
The AI compares your profile against our database of equipment financing providers to identify those specializing in your equipment type.
Structure Optimization
Our system determines whether a loan or lease structure would be more beneficial based on your business goals and tax situation.
Funding Facilitation
Once matched, our platform streamlines the application process, document submission, and funding to get your equipment financed quickly.
Types of Equipment Financing
Different financing structures to meet your specific equipment needs and business goals.
| Financing Type | Ownership | Term Length | Down Payment | Best For | Typical Rates |
|---|---|---|---|---|---|
| Equipment Loan | Own after payoff | 2-7 years | 10-20% | Long-term equipment needs | 5-30% |
| Finance Lease (Capital Lease) | Option to purchase | 2-5 years | 0-10% | Planning to keep equipment | 6-25% |
| Operating Lease | Return or upgrade | 1-3 years | 0-5% | Equipment that becomes outdated | 7-20% |
| TRAC Lease | Flexible end options | 3-5 years | 0-10% | Transportation equipment | 6-18% |
| Equipment Line of Credit | Own after payoff | 1-5 years | Varies | Multiple equipment purchases | 8-25% |
Which Equipment Financing Option Is Right For You?
Choosing the right equipment financing structure depends on your business goals, equipment type, and financial situation. Our AI technology analyzes these factors to recommend the best option:
- Choose equipment loans
If you plan to keep the equipment long-term and want to build equity
- Choose finance leases
If you want lower initial costs but plan to own the equipment eventually
- Choose operating leases
If you need equipment that becomes outdated quickly and want to upgrade regularly
- Choose TRAC leases
If you're financing vehicles or transportation equipment
- Choose equipment lines of credit
If you need to make multiple equipment purchases over time
Industry-Specific Equipment Financing
Specialized financing solutions tailored to different industry equipment needs.
Construction & Heavy Equipment
- Excavators, bulldozers, cranes, loaders
- Longer terms (5-7 years) available
- Seasonal payment options
- Used equipment financing available
Medical & Healthcare
- Imaging equipment, diagnostic tools, specialized medical devices
- 100% financing often available
- Software and installation costs can be included
- Specialized healthcare lenders available
Restaurant & Food Service
- Ovens, refrigeration, food prep equipment, POS systems
- Shorter terms (2-5 years) typical
- Bundle multiple equipment types in one package
- Startup-friendly options available
Transportation & Fleet
- Trucks, vans, specialty vehicles, trailers
- TRAC leases with flexible end-of-term options
- Fleet management solutions available
- Fuel card integration options
Manufacturing
- CNC machines, production lines, industrial equipment
- Progress payment financing for custom equipment
- Sale-leaseback options for existing equipment
- International equipment financing available
Success Story
"We needed to upgrade our manufacturing equipment but didn't want to deplete our working capital. Through Lendec, we secured $350,000 in equipment financing with terms that aligned perfectly with our cash flow. The AI matching found us a specialized lender familiar with our industry who offered better rates than we'd found elsewhere."
— Michael R., Manufacturing Business Owner
Equipment Financing Eligibility Requirements
Understanding what lenders look for can help improve your chances of approval.
Basic Requirements
- Time in business: 6-12+ months (some startup options available)
- Personal credit score: 600+ for best rates (options for lower scores)
- Annual revenue: Varies based on equipment cost
- Down payment: 0-20% depending on credit and equipment
- Equipment purpose: Must be for business use
- Equipment type: Must have resale value
Documentation Needed
- Equipment quote or invoice
Detailed description and cost from the vendor
- Business financial information
Bank statements, tax returns (for larger amounts)
- Business identification
Business license, EIN documentation
- Equipment purpose statement
Brief explanation of how the equipment will be used in your business
- Personal identification
Driver's license or other government ID
Understanding Equipment Financing Costs
Key factors that determine the total cost of your equipment financing.
Interest Rates & Factor Rates
Equipment financing rates typically range from:
- • 5-10% for excellent credit and established businesses
- • 10-20% for average credit profiles
- • 20-30% for challenged credit or startups
Rates are influenced by your credit score, time in business, equipment type, and term length.
Fees & Down Payments
Common costs beyond the interest rate:
- • Down payment: 0-20% of equipment cost
- • Origination fees: 1-3% of financed amount
- • Documentation fees: $100-$500
- • Equipment inspection fees (if applicable)
- • End-of-lease fees or purchase options
Tax Considerations
Potential tax benefits to consider:
- • Section 179 deduction for equipment purchases
- • Depreciation benefits for owned equipment
- • Interest deductions on equipment loans
- • Lease payments may be fully deductible as business expenses
- • Consult a tax professional for your specific situation
Loan vs. Lease: Cost Comparison
Understanding the total cost difference between equipment loans and leases can help you make the right choice for your business.
Equipment Loan Example:
For a $50,000 piece of equipment with a 5-year term at 8% interest:
- • Down payment: $5,000 (10%)
- • Monthly payment: ~$1,013
- • Total payments: ~$60,780
- • Total cost: ~$65,780 (including down payment)
- • You own the equipment at the end of the term
- • Potential tax benefits from depreciation and interest
Equipment Lease Example:
For the same $50,000 equipment with a 5-year lease:
- • No down payment
- • Monthly payment: ~$1,100
- • Total payments: ~$66,000
- • End-of-lease purchase option: $5,000 (10%)
- • Total cost if purchased: ~$71,000
- • Option to upgrade to new equipment at end of term
- • Potential tax benefits from deducting lease payments
Equipment Financing Application Process
Our AI-powered platform streamlines the equipment financing application process.
Equipment Selection & Quote
Select the equipment you need and obtain a detailed quote or invoice from the vendor. Our platform can help you find equipment vendors in your industry if needed.
AI-Powered Matching
Our AI analyzes your business profile, equipment type, and financing needs to match you with the right equipment financing providers and structures (loan vs. lease).
Application Submission
Complete a simple application and upload your equipment quote and business documentation. For equipment under $150,000, many lenders offer streamlined applications with minimal paperwork.
Approval & Review
Lenders review your application and equipment details. Approval times vary based on equipment cost, with decisions often coming within hours for smaller amounts and 1-3 days for larger amounts.
Documentation & Funding
Sign the financing agreement and any related documents. The lender typically pays the equipment vendor directly, and you can schedule delivery of your equipment.
Ready to Finance Your Equipment?
Let our AI match you with the right equipment financing solution for your business needs.
Get Matched NowFrequently Asked Questions About Equipment Financing
Get answers to common questions about equipment financing and how our AI-powered platform can help.
Related Resources
Equipment Financing Calculator
Compare loan vs. lease options and estimate monthly payments with our interactive calculator.
Try CalculatorSection 179 Tax Guide
Learn how to maximize tax benefits for your equipment purchases with Section 179 deductions.
Read GuideEquipment Financing Success Stories
Read how other businesses successfully used equipment financing to grow and improve operations.
View Success Stories