This will help us determine the right terms for the equipment loan or if you should even purchase equipment at all. You should also make sure you know the current market valueand final invoice price. The final drawback is the interest you have to pay on the term loan. Another drawback would be fixing the equipment when it breaks down. On the other hand, if you’re leasing, then the equipment leasing company handles the maintenance and repairs.

  • Gather and neatly organize these documents in advance to demonstrate your professionalism and trustworthiness.
  • Making on-time payments can have a positive impact on your business credit score.
  • When you start an application online or by phone, we’ll work with you one-on-one to find the program that best fits your financing needs.
  • Lantern by SoFi seeks to provide content that is objective, independent and accurate.

Most of them don’t do hard credit checks and quite a good number won’t even consider your personal credit. This makes them ideal for business owners who haven’t had enough time to build their credit. As a small business, equipment financing is one of the easiest ways to acquire costly tools that your business needs. Beyond those two, you can also use online loans, traditional bank loans, SBA loans, business lines of credit, and business credit cards. As a small business owner, you can get equipment loans from traditional banks, online lenders, community banks, and credit unions.

Best Equipment Finance Companies

A bank or other lender can simply take the equipment back if a business ever defaults on the loan. This is particularly advantageous for startups that don’t have enough history to have established business credit. Regardless of your industry and the type of equipment you need, Charter Capital can help connect you with the best lenders offering the lowest rates so you can go forward with ease. We can help you get the funds you need to get started and scale.

Small Business Equipment Financing

Basically, anything that may require more funding to expand your business could be covered by a startup business loan, if your business qualifies. For lower-value, everyday tools that may need to be replaced regularly, some hardware chains offer trade accounts with short-term credit options. If you operate in the mining or construction industry, you will can expect to pay hundreds of thousands of dollars for each heavy vehicle or piece of specialised equipment.

What are the best commercial equipment financing companies?

After applying for equipment financing, funding can be received in as few as two business days—though this also varies by lender and loan type. Monthly payments are then spread out over a loan term extending from as few as three years to at least 10 years. Equipment financing is secured by the equipment being purchased, so if the borrower defaults on the loan, the lender can repossess the collateral and resell it to recoup its losses. Lendio offers a wide variety of loan types, from business lines of credit to equipment loans, as well as property loans. Lendio also provides different loan amounts to suit each type of loan they offer, with high loan limits and relatively low interest rates.

What is Equipment Financing, and How Do You Apply for Financing?

Whatever type of commercial equipment your company needs, we’ll work with you to find the best available financing solution. We’ve financed commercial equipment for companies of all sizes across dozens of different industries. Combine all equipment-related expenses into one easy payment with 100% financing.