To get approved for a Crest Capital loan, you need at least two years of business under your belt and a credit score of 650 or higher. You also can’t have a history of any delinquent payments or nonpayment with any other lenders. Crest Capital offers Section 179 qualified financing, which allows tax deductions on the cost of equipment. Under Section 179, small businesses can deduct up to $500,000, with a threshold of $2 million for total equipment purchased for the year. Besides the interest rate, the only fee Crest Capital charges is a $250 documentation fee.

  • Royal Bank of Canada does not make any express or implied warranties or representations with respect to any information or calculations in connection with this business loan calculator.
  • Similar to the treatment under the equipment loan, depreciation of the asset and the interest portion of any lease repayment may be tax deductible.
  • Then we scored those lenders on their rates, requirements, funding times, customer reviews, and other factors―and the resulting scores gave us the rankings you see here.
  • These are the top 3 specialist lenders for equipment financing.

Spreading out the cost of your business’s equipment is one way to make it more affordable. Finally, you, the borrower, contribute 10% to the loan as down payment. Your CDC facilitates a separate SBA loan of 40% of the total, up to $5 million, at a fixed, below-market rate. Manufacturers or projects that implement green efficiencies can receive up to $5.5 million. To learn more about how our point of sale software can help you grow your small business, click below.

Construction Loans

At the end of the day, finding the best equipment financing company is no different than finding a lender for a different type of loan. You’ll want to shop around for multiple quotes before applying and read any terms and conditions carefully before signing on the dotted line. If you doubt you’ll be able to pay off your equipment purchase in a matter of months, think about using Lendio.

Small Business Equipment Financing

This is because some industries pose more risk to lenders than others. For example, businesses in the construction industry are often considered riskier than those in the transportation industry. For that reason, equipment leasing may be a better option for business owners who don’t plan to use the equipment for very long—usually three years or less.

What Costs Are Associated With Equipment Financing?

Equipment financing helps businesses secure up to 100% of a new or used equipment purchase. Applying for an equipment loan is a quick and easy way to finance the purchase of expensive business equipment, with low rates and great terms. An asset is a loose term given to any equipment or vehicle your business may require to run. An asset could be adding a new vehicle to your fleet to deliver more stock, or it could be upgrading machinery so you can increase productivity. Commercial equipment financing allows you to purchase or lease that asset, and covers basically all industries and equipment.

If you end up having the equipment for a long period of time, a loan will probably be a much cheaper option. Get in touch with the Charter Capital team today to learn more about small business equipment financing programs and obtain expert advice on equipment financing for startups. We are happy to answer any questions you may have and set you on the path to success. Most SBA loans require that you have at least two years of business tax returns and have a minimum credit score of around 630. For loans under $25,000, lenders aren’t required to take collateral. The interest rate can vary, as long as it stays under the SBA cap.