Even though you might not find specific equipment grants, there are still many of them that you can use to buy machinery. Make sure the amount they offer matches the piece of machinery you chose. When new clients approach ei Funding about growing their business, one of the questions that’s… Choose one of our many checking solutions, designed to fit your business. Revolving with renewals occurring once a year for lines of credit no greater than $500,000. Please, tell us where you live so we can give you accurate rate and fee information for your location.

  • However, the rates and terms may not be as good as those from a traditional bank lender.
  • They offer up to $500,000 with competitive interest rates to boot.
  • That said, if you have a lower score, you may be subject to a higher interest rate or additional qualifying requirements.
  • Even if you have bad credit, equipment financing can still be an option.

We measure our success on that of the vendors we serve and the satisfaction of their customers. Our commercial equipment finance rates depend on several factors including the term of the financing, product chosen, and credit quality. We work hard to provide our clients with tailored equipment finance rates that are competitive so they can focus on growing their business. Terms for equipment loans vary depending upon the individual lender.

Equipment Financing FAQs

When you need to buy new or used equipment for your business, but don’t have the cash on hand to do so, what do you do? One option is to take out an equipment loan, which is a type of financing that allows you to purchase new or used business equipment by borrowing money from a lender. In this article, we’ll discuss financing for equipment, including how it works and what you need to know before you apply. For one thing, most equipment leases have an option to buy at the end.

Small Business Equipment Financing

Soft costs are usually covered – These include extra fees, delivery premiums, or installations charges. Some financing options will waive these costs as an incentive to use their services. These smaller costs can add up quickly so make sure that you look into any favorable conditions such as these. The major difference here is a matter of who owns the equipment. A loan, or financing, is something allows businesses to purchase the equipment over a long period of time. A lease allows businesses to rent the equipment over a certain period.

When are payments due?

This gives lenders an extra layer of security – which in turn improves your approval odds. All of our business equipment financing options are fully customizable to fit you and your business needs. In order to qualify for business equipment financing, you’ll typically need a FICO score of at least or 6 months of business history and at least $120,000 in annual revenue. An equipment loan is a type of finance that enables businesses to obtain the technology or machinery they need.

This means that they have high interest rates, which is the reason why many business owners ignore these options by default. But these two options are not the only types of financing available today, which gives business owners new opportunities. The ever-increasing number of them choose to use credit cards and other types of “instant” equipment financing. These options are not marketed as “equipment financing” but they can be used for any purpose you need.