Those criteria are quite a bit higher than the other equipment financing companies on our list. Plus, Bank of America takes its time with your application and funding. Whether you should do that, however, is another matter entirely. Equipment loans have lower interest rates and longer loan terms than many working capital loans do. Plus, most equipment loans require monthly payments, while many cash flow loans require weekly payments.

Small Business Equipment Financing

One aspect of owning and operating a business that is overlooked by many, excluding the small business owner of course, is how much equipment purchases can upset your cash flow. Many businesses require up-to-date, reliable and quite often expensive pieces of equipment to keep their business running smoothly. Luckily, there is a solution for equipment financing for small business owners, right at your fingertips. The right equipment can help your business expand its capacity, become more efficient and increase your profitability. Our Equipment Finance team specializes in financing for a broad range of industries and asset types. From acquisition financing to refinancing or sale leasebacks, we can quickly tailor a flexible solution to meet the unique needs of your company.

Option Lease:

Depreciation on equipment usually makes traditional lenders wary of lending large sums for businesses to purchase equipment. However, alternative lenders usually provide customized financing solutions for your equipment needs. At National Funding, we can help you design an equipment loan or lease program for business equipment up to $150,000. We don’t require a down payment and our equipment financing is available for new or pre-owned equipment. Without at least two years’ time in business and strong annual revenues, business lenders will have to rely on your credit scores to get an idea of the borrower’s creditworthiness. A business owner with bad credit will find it tough to qualify for almost any loan.

  • You might pay a higher interest rate when compared to a traditional bank loan or credit union, but are likely to have a shorter repayment period – usually between 6 months to 2 years.
  • Whatever the sector your business operates in, there’s probably an asset that your business couldn’t survive without or you believe could improve how you operate your business today.
  • It can also help save money in the long-term, since renting equipment typically costs twice as much as paying for it.
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  • So, while the housing market may be hot, there’s a ton of competition to contend with.

State-of-the-art equipment lays a solid foundation for business growth and enhanced productivity. Every business understands the significance of keeping pace with the latest technological developments to stay ahead of the curve. Accelerate sales for your business with a tailored vendor financing program. Transfer your high rate credit card balances to an Ameris Bank VISA®Platinum Card. Finance new and used equipment, machinery, vehicles, and technology for your small business needs. The information provided should not be considered as tax or legal advice.

An excellent way to grow your business without significant out of pocket expenses.

However, you can qualify even with a lower score because equipment loans are by nature self-secured. That means the equipment itself acts as collateral, which incentivizes lenders to relax their credit score requirements. Equipment financing or equipment leasing options are a type of small-business loan designed specifically for the purchase of machinery and equipment essential to running your business.

It’s also important to understand that a lease agreement is still considered debt, just like financing. This could potentially impact your ability to access commercial mortgages, a business line of credit, or trade credit from vendors. Financing equipment also allows you to own the asset, as opposed to leasing.