Equipment Lending & Financing

Every business needs tools to thrive, and for many small businesses, acquiring the necessary equipment can be a major financial hurdle. Equipment financing can be your bridge to acquiring the machinery, technology, or vehicles you need to fuel your growth. Let's delve into the world of equipment financing, exploring its types, how it works, typical rates, and the advantages and disadvantages it offers to small businesses like yours.

What is Equipment Financing?

Equipment financing is a loan specifically designed to help businesses purchase essential equipment. Unlike traditional business loans that offer lump sums, equipment financing provides targeted funding for your specific equipment needs. This means you only pay for what you use, reducing upfront costs and improving cash flow.

Different Types of Equipment Financing:

  • Term Loans: These offer a fixed amount of money to purchase equipment, with a set repayment schedule and interest rate.

  • Leases: You essentially rent the equipment from a leasing company, making monthly payments until the lease term ends. Ownership can sometimes be transferred at the end of the lease.

  • Lines of Credit: Similar to a credit card, you get a pre-approved borrowing limit for equipment purchases, allowing you to draw on funds as needed.

Depending on the type of financing, you own the equipment after full repayment or at the end of the lease term.

Pros and Cons

PROS:

  • Acquires essential equipment without depleting cash reserves.

  • Improves cash flow through fixed or flexible repayment options.

  • May offer tax benefits for depreciation of equipment.

  • Faster access to equipment compared to traditional loans.

  • No need for collateral in some cases.

CONS:

  • Interest rates can be higher than traditional business loans.

  • Potential for hidden fees or early termination penalties.

  • Ownership may be delayed or conditional with leases.

  • Debt burden can impact future borrowing capacity.

FINANCE
YOUR WAY 

DO-IT-YOURSELF BUSINESS LOANS

  1. Complete application and loan package

  2. See matching lenders

  3. Select one or all matching lenders to access your loan package

  4. Receive loan proposals from interested lenders

  5. Select the winning lender and e-sign their loan proposal

Use the tools and intel available, follow the process, receive alerts at every stage along the way, and utilize LoanBox human support as needed.

LOANBOX ADVISOR SUPPORTED LOANS

  1. Complete applicant summary form

  2. Have consultation

  3. Upload the docs requested

  4. Receive, discuss, and approve your LoanBox Advisor plan

  5. Provide needed docs as requested as your Advisor navigates everything for you

Your loan is still managed on the LoanBox platform, so you still have access to the same lenders and receives the same alerts.