Equipment Financing
Equipment Financing is ideal for businesses needing equipment without upfront capital. It covers 100% of new or used equipment costs, with repayment terms up to 10 years. Rates range from 5% to 25%, and funding can be approved in 24-48 hours.
Applying is free and won't impact your credit score.
What Is Equipment Financing?
Equipment financing provides business owners with a solution to finance the full cost of both brand new and used equipment needed for their operations! Everything from machinery and tools to vehicles, computers and more! Equipment financing loans are self secured, so the equipment itself serves as collateral, and the application process is simple, requiring very little paperwork!
How Does Equipment Financing Work?
Asset-Based Financing: Equipment financing is secured by the equipment itself, making it easier to qualify for than other loans. This means you won’t need additional collateral, though a down payment of 10% to 25% may be required.
Interest Rates and Terms: Interest rates typically range from 4% to 40%, with repayment terms usually between five to six years. However, some lenders may offer longer terms, up to 10 years. The repayment term may be based on the equipment's anticipated life, ensuring that the loan duration aligns with the useful life of the equipment.
Quick Funding: Equipment financing provides quick access to funds, often within 24 to 48 hours, allowing you to purchase the necessary equipment promptly and keep your business operations running smoothly.
Equipment Serves as Collateral
Equipment financing is self-secured, meaning, the equipment you finance will serve as collateral.
Wide Range of Uses
Equipment financing can be used to finance a wide range of equipment. Anything from vehicles to computers!
Fast Funding
You can receive funds to make your equipment purchases in as little as 1 -2 days!
Do I qualify?
Minimum Qualifications
600+ personal FICO score
At least 1 year in business
$100,000+ in annual revenue
What You Need To Apply
Basic info about your business
Business checking account
Last 3 months business bank statements
Equipment Financing vs. Equipment Leasing
Lenders may also offer equipment leasing, which differs from equipment financing:
- Ownership: With an equipment loan, you own the equipment at the end of the repayment period. With leasing, you have the option to purchase the equipment at the end of the term or enter into a new lease.
- Cost: Equipment leasing can be more expensive in the long run compared to equipment financing. Leasing may be preferable if you need to upgrade equipment frequently.
How to Get a Equipment Financing
Before applying for equipment financing, it's important to evaluate your funding needs. Here's a step-by-step guide to help you secure the necessary funds for your business equipment:
1. Assess Your Funding Needs
- Identify Your Purpose: Determine the specific equipment you need to purchase. Whether it’s machinery, vehicles, or technology, having a clear objective will help you decide the appropriate loan amount.
- Calculate the Amount: Make a detailed estimate of the total cost, including any additional expenses associated with the purchase. This ensures you don’t fall short of funds.
2. Evaluate Your Eligibility
When considering equipment financing, lenders typically focus on a few crucial factors:
- Business Revenue: Lenders will assess your business's revenue to gauge your ability to repay the loan. Typically, they look for $100,000+ in annual revenue. However, lenders in our network often have more flexible requirements, which is advantageous for newer or smaller businesses.
- Credit History: Your credit history is crucial in evaluating your financial reliability and risk of default. Most lenders look for a personal FICO score of 600+. A higher credit score can improve your chances of receiving more favorable terms.
- Time in Business: The length of time your business has been operational is another critical criterion. Traditional banks usually require a business to be active for at least two years. In contrast, lenders in our network often only require a minimum of one year. A longer operational history can convey stability to lenders, potentially leading to lower rates and better terms.
3. Submit Your Application
Applying for equipment financing at Status Funding is designed to be quick and easy. Our online application process can be completed in just a few minutes. During the application, you will be asked to provide details about your business which includes the owner's information, general business information, the last three months of bank statements, identity verification documents, and a business checking account. Once submitted, our advanced algorithm swiftly evaluates your business profile to match you with the ideal lenders, ensuring a perfect fit for your financial needs. If approved, you will receive business term loan offers to review and select the best offer that suits your needs. This enables you to access the capital your business requires, often within as little as 24 hours, streamlining the process to get you funded efficiently and effectively.
Pros and Cons
Quick funding for equipment purchases
Equipment serves as collateral
Limited paperwork and fast application process
Only applicable to businesses needing equipment
Equipment may become obsolete before loan repayment.
Our application process is easy.
1
Apply Instantly
Fill out our quick and easy online application. It only takes a few minutes and won't affect your credit score.
2
Discover Your Options
Receive personalized funding offers, carefully curated to align with your business goals and requirements.
3
Get Funded
Choose the best funding offer for you and access the capital your business needs in as little as 24 hours.
*The content provided on this page reflects the opinions and insights of Status Funding, based on our research, methodologies, evaluations, and various additional considerations. This information is accurate as of the initial publication date. Status Funding makes every effort to update and maintain the accuracy of this content to ensure its relevance and accuracy, however, the information may differ from what you may find on other platforms, including financial information sites, different service providers, or specific product pages. All information is presented without any warranty. We encourage you to carefully review the terms and conditions, relevant policies, contractual agreements, and all applicable details of the financial institution when considering offers. The ranges mentioned here do not represent pre-qualified offers. Ranges may be greater or less based on the information provided in your business financing application. Please be aware that Status Funding may receive compensation from financial institutions that are reviewed on this page if you proceed to obtain business financing through them.
