Equipment Financing — How It Works

The Process, Step by Step

We built this to be simple. No surprise fees, no hard sells — just a clear path from question to funding.

01

Understand Your Options

Browse our free guides and use our calculators to understand what loan products fit your situation — before you talk to anyone.

02

Prepare Your Application

Gather your financial statements, tax returns, and business docs. Our checklist walks you through exactly what lenders want to see.

03

Submit & Get Matched

Complete a single application. We review your profile and match you with lenders from our vetted network who are likely to approve you.

04

Review Offers & Close

Compare offers side by side — rate, term, fees, and monthly payment. Choose the one that works for your business and close on your timeline.

What Lenders Evaluate

Credit Profile

Business and personal credit scores, payment history, and outstanding debt all factor into approval and rate.

Cash Flow

Lenders want to see consistent revenue that more than covers your debt obligations — typically 1.20x DSCR or better.

Time in Business

Most lenders want 2+ years in operation. Startups have options but face stricter terms and lower limits.

Collateral

Assets pledged as security reduce lender risk and often lead to better rates and higher approvals.

Documentation

Tax returns, P&Ls, bank statements, and a coherent business plan are table stakes for any application.

Industry & Use

Lenders assess industry risk and want to know specifically how the funds will be used and how that drives repayment.

Loan Types

From light equipment to heavy industrial machinery — understand your options.

Equipment Loan

Own the equipment outright. Fixed payments, equipment serves as collateral.

Common Range$5K – $5M
Typical Term2–7 years
Best ForMachinery, vehicles, tools
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Equipment Lease

Lower monthly cost, easy upgrades. Option to buy at end of term.

Common Range$5K – $2M
Typical Term1–5 years
Best ForTechnology, short-use assets
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Sale-Leaseback

Sell equipment you own, then lease it back. Immediate liquidity without losing use.

Common Range$25K – $5M
Typical Term2–5 years
Best ForFree up tied-up capital
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Fleet Financing

Finance multiple units under one facility. Volume pricing and fleet management.

Common Range$50K – $10M
Typical Term3–7 years
Best ForVehicles, transport fleets
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Technology Financing

Keep cash free for operations. Structured to align with technology refresh cycles.

Common Range$10K – $1M
Typical Term2–5 years
Best ForServers, software, IT buildout
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Heavy Equipment

Specialized lenders who understand residual values in heavy industries.

Common Range$100K – $20M
Typical Term5–10 years
Best ForConstruction, agriculture, mining
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