We have over 20 lending partners in our network whom we have done business with for many years and trust to take care of our small business clients. Our number one priority is our relationship with our clients, and we want to do everything we can to help you find the best financing solutions. If you carry significant debt, buyers may not want to take on your loans. You’ll have less money in your pocket if paying them off becomes a condition of the sale. Be conservative when estimating how much more productive your business will be with new machinery.

Small Business Equipment Financing

Borrowing via small business equipment loans is generally at a lower interest rate than unsecured small business loans and proves easier to access for new businesses. Now, you might be concerned about asking equipment sellers about their business equipment financing options. People often mistakenly believe that “healthy” companies don’t need loans. In reality, the vast majority of business owners use financing.

How hard is it to get an equipment loan?

However, keep in mind that every lending institution will have slightly different terms and conditions pertaining to the loan you receive. You’ll likely be asked to specify the exact needs of your business during the application process. You’ll lease the machinery or tools you need for a specified term, and at the end of this term, you will return the equipment. Depending on the terms of your lease, you may have the option to renew your term or even buy the equipment outright.

  • With a sale and hireback agreement, the financier owns the asset and would be off the balance sheet.
  • The company has an online calculator to help you determine how much your monthly payments will be.
  • Marketplaces that match borrowers with financing companies offering loans or leases based on borrower qualifications.
  • However, as small business owners nationwide know very well, sometimes getting access to that capital isn’t always easy to do, and using existing revenues or savings is not always ideal.
  • From there, you’ll make regular payments for the duration of your loan – typically up to 5 years.

With a $1 million loan, for example, the down payment could be $100,000 or more. Luckily, down payments aren’t additional fees tacked on to the total cost of the loan, so if a business pays $100,000 down on a $1 million loan, it reduces the balance of the loan by that much. Business equipment loans can be used to cover the funds for new or used machinery. When you apply for a loan with Pursuit, your loan officer will find the best loan program to meet your equipment and technology needs. Equipment finance or asset finance is not a short-term solution to money worries.