New businesses are considered high risk, so their options will be more limited. Your regular payments will be lower if you opt to pay a final balloon payment, but that does mean you’ll pay more interest in total over the term of the loan. There are no equipment-specific loan options through Funding Circle. Instead, the company encourages entrepreneurs to take out standard term loans in order to fund equipment purchases. They have terms spanning from 3 months to 10 years, and even offer specialty SBA loans to some borrowers.

Small Business Equipment Financing

Each option addresses different business needs and offers advantages and disadvantages, which are summarized below. This comprehensive list of small business funding solutions includes credit-based and equity-based options, as well as links to resources and examples of funding solutions. Business financing is a term used in reference to any way a business acquires capital to pay for operations, growth, or improve cash flow. In this guide, you’ll learn about all of the different options available to small business owners when it comes to funding those business expenses.

Step 2: Create an effective business plan

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  • Plant equipment financeis all about heavy machinery, machine tools, construction equipment and manufacturing equipment.
  • Unsecured equipment finance from Moula can also be used to buy used equipment.
  • Your interest will also be fixed throughout the agreement terms.
  • One also shouldn’t forget that even if you aren’t in a rush, securing some kind of loan might be the only way for your company to get any equipment at all.

Be sure to factor in these costs when creating your budget plan. Depending on your term and the size of your funding, you might not be able to secure another source of funding while you are paying back your equipment financing. Equipment financing allows you to obtain a loan for the purchase of new business equipment. Equipment financing with bad credit can be a great option if your credit rating is less than perfect, too, since the equipment acts as collateral. You can also leverage existing owned equipment to get a loan using your equipment as collateral. Companies that lease equipment may be limited as to what they can do with the equipment, especially when it comes to modifying or repairing the items.


With some leases, the lender will allow you to purchase the equipment at the end of a predetermined amount of time. Some lenders will allow you to buy the equipment for Fair Market Value , while others will specify a specific amount – sometimes as low as $1. If you think there is a risk that the equipment might become obsolete during the loan term, you should consider equipment leasing instead of an equipment loan. This may be a better option if new models, regulations, or technologies are regularly introduced to the market, and you need to upgrade your equipment accordingly. If your company decides to take the financing route, it can make a strategic forecast on what equipment will give it the best possible ROI for its cost and orient financing in that direction. This will then let you accelerate growth, revenues and profits while also paying off your loan debts rapidly.

Is your financial plan on track?

Submit a simple online application.Get a prompt decision during Balboa Capital’s regular business hours.If your application is approved, funds will be provided fast. You might be able to deduct the interest from your taxes, and you can use the loan to lower your net income and net worth without burning through your working capital. The equipment loan may prove to be the means that allows you to get the things you need while keeping an important cash reserve and avoiding being hit hard in tax season. Business plan.You will need to supply your lender with a detailed proposal of your company goals, your annual revenue and the number of years you have been in business.