Equipment Financing

How It Works —

Financiers pay for the large upfront costs to purchase equipment and you make smaller monthly payments to repay. Payback is set based on the type of equipment and price that is being financed.

Example —

Financier pays for $200K in computer equipment that you need for your employees. You pay back the $200K plus 10% annual interest in equal monthly payments for 5 years.

You Might Be A Fit If —

• You are purchasing equipment that holds value without too many other costs such as licenses, maintenance, and installation.
• You have steady revenue to support repayment.

Why You Would Use This —

• Keep more cash in the business and avoid large payments to purchase equipment.

• Some of these financings are completely based on the equipment and not your business history.

What TO WATCH OUT FOR —

• Despite the ability to avoid a large cash transaction, the added interest does add cost to the equipment purchase. 

  • You can typically find the lowest interest options directly from the vendor that you are purchasing the equipment from.

• Equipment could be out of date at the end of the financing arrangement. 

  • You can work with the same or another equipment financier to purchase new and latest versions.