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. The majority of small businesses in the industries that require heavy machinery and various sophisticated equipment have a rather limited cash flow. Therefore, saving up for the extremely expensive machines isn’t an option by default. The application process for equipment loans is fairly straightforward and applications can often be approved quickly. It’s possible to finance up to 100 percent of the cost of equipment, but it’s common for lenders to require you to pay 10 to 25 percent of the cost of the item as a down payment. Interest rates are generally lower if you are able to pay a larger down payment.

  • Additionally, some equipment finance companies allow for seasonal payments, making it easy to adjust payment structures to varied income.
  • Our app allows you to view transactions, transfer funds, pay bills, deposit checks and more!
  • A smart solution for businesses experiencing cash-flow shortages.
  • Loans are generally capped at $5 million, but there is flexibility for eligible projects.
  • Subject to receipt of all required documentation, day, and time of application.

For a startup business in particular, the idea of affording necessary equipment can feel like mission impossible. At the same time, the business needs the equipment to make the money…to afford the equipment. The first is a loan from a conventional lender for at least 50% of the total amount. You and that lender determine the amount and conditions of that loan, which becomes your first mortgage.

Non-Bank Loan Options

With that in mind, how can one long-term lease or finance information technology without running into massive depreciation? Luckily, Moore’s Law has slowed somewhat, thanks to cloud based computing and modest requirements for productivity software. When it comes to IT financing, you may require leases that allow flexibility for innovations in your industry. A rolling lease might give you new equipment on a fixed term, so you aren’t spending capital on acquiring essential technology and losing out on massive depreciation.

Small Business Equipment Financing