Getting new vehicle and equipment needn’t cripple your cash flow – if you make use of flexible equipment financing options. Like an equipment loan, an HP agreement doesn’t tie up available cash and generally doesn’t require additional security. Similar to the treatment under the equipment loan, depreciation of the asset and the interest portion of any lease repayment may be tax deductible. There are different types of business loans available to suit a range of scenarios. It is possible to secure startup equipment financing even with bad credit. You’ll need to have at least 6 months of business history and $120,000 in annual revenue in order to bypass credit score requirements.

  • Freeing up your cash flow allows you to address multiple priorities — and gives your business resilience in a downturn.
  • Many small business equipment loans can be paid back using monthly payments or even semi-annual payment schedules.
  • We ultimately thrived, and continued with multiple projects funded by KLC.
  • Then you can use your incoming cash for things like your payroll or marketing budget instead of tying it up in equipment.
  • The higher your scores, the more likely you are to get approved with better loan terms.

Not only that, the application process is quick and easy helping you to respond quickly to business needs, industry trends and technological advancements. Multiple types of financing and lower costs with a fast and easy application process. Typically, the equipment you are purchasing serves as the collateral for the loan and we can finance up to 100% of the purchase price. Our team will work with you to get the best plan in place that keeps your cash flow, well, flowing. Work with an established leasing company with years of industry experience.

How do you get equipment financing?

The fee will depend on your personal credit score, your business’ key indicators, but also on the equipment and how well it holds its value over time. It is typical for the repayment period to be 10 years or more and for a loan of up to 80%-100% of the equipment value to be provided. But, lenders offering 80% of equipment value for a small business equipment loan is the most common. This means a business owner will still need to make a substantial down payment to get the loan. Each of these business equipment financing options is slightly different, so it’s important to understand the details of each.

Small Business Equipment Financing

Another option, especially if you don’t qualify for traditional financing, includes short-term loans. These tend to have—you guessed it—short repayment periods, typically of a few months to a couple of years. They may have higher interest rates than other options listed here, but also less stringent requirements to qualify. With a chattel mortgage you’ll own the asset immediately but spread the cost over an agreed period .