We feature products and services from companies we find reputable, whether or not they are our advertising partners. No partner can guarantee placement or favorable reviews on AdvisorSmith. Equipment financing allows you to obtain new equipment for your business now but spread the cost over an extended period to make the payments more affordable and manageable. By staggering the installments over a few months or years, you can leave your business with the money it needs to maintain healthy cash flow.

Small Business Equipment Financing

So if you’re considering investing in new equipment, you should first consider talking to a lender. Even under normal circumstances, lenders can make it much easier for businesses to thrive. For example, equipment financing works basically the same as cash, so you can get the equipment you need when you need it, and you don’t miss out on any growth opportunities. Review the pros and cons of buying or leasing equipment, your financing options, and how to determine the best option for you. Whether you’re trying to expand or looking to buy equipment and inventory, a business term loan may be the solution you need. The loan can be used to invest in the growth of your business, and then the returns can help you to repay the loan and interest over time.

What to look for in a loan provider

We ultimately thrived, and continued with multiple projects funded by KLC. We never could have grown to the size we have without funding from KLC, and we are very grateful for all they have done for us throughout the last 7 years. Updated business plan with details on your growth and marketing strategies. Not all lenders will require a business plan, but the information in the business plan will be essential to helping you find and apply successfully for financing. For banks to make startup loans, they need to make sure the loan is not too risky. They will usually look for strong personal qualifications , excellent credit, a down payment, and will likely require a personal guarantee.

  • Tools for Leveraging Cash Flow – Treasury Management solutions are essential for managing your cash flow.
  • National Funding offers equipment financing of up to $150,000 with credit decisions in as little as 24 hours.
  • A bank or other lender can simply take the equipment back if a business ever defaults on the loan.
  • With an amount that maxes out at $50,000, it’s not the biggest loan out there.

The trade association ELFA represents more than 500 equipment financing companies and manufacturers. If you return the equipment at the end of the lease, you may have to pay for de-installation and delivery. The financing company and the equipment vendor are often separate entities, and the financing company isn’t responsible for the quality of the equipment. If there’s a problem with the equipment, you need to resolve it with the vendor while still paying the finance company. Whether you’re a startup or well-established, a business plan shows lenders that you have a clear roadmap.