Equipment Financing FAQs Archives

To give you a better idea of what equipment financing might cost, use our loan calculator to crunch the numbers and estimate your total cost of borrowing.

Business equipment financing involves obtaining funds to acquire or lease necessary equipment, tools, technology, or machinery for your business operations. When you opt for equipment financing, the equipment itself serves as collateral for the loan. This arrangement means that if you default on payments, the lender has the right to take possession of the equipment to recover their investment.

Pros

Fast funding available
Self-collateralizing
Option to lease
Ability to spread out the cost of your purchase over time

Cons

Restricted to equipment, tools and machinery
Down payment may be required

Equipment financing is ideal for businesses aiming to expand by acquiring specific tools or resources. However, the decision of whether to lease or buy your business equipment significantly impacts how you finance the purchase.

Business equipment loans are used to acquire equipment that you intend to own. This option is suitable when you need durable items expected to be used for three years or more, such as cash registers, refrigerators, or commercial manufacturing tools.

Leasing business equipment is advisable if the equipment is likely to become obsolete quickly or if you’re unable to provide a down payment upfront.

When determining whether to purchase or lease your business equipment, consider the following factors:

How long will you need the equipment?
What is the current financial status of your business?
Is the equipment expected to become outdated quickly?
Will you be able to maintain the equipment independently?

Making a well-informed decision between purchasing or leasing can optimize your business’s efficiency and financial health.

Equipment financing is tailored to suit a wide range of industries and needs. From professional DJs to construction firms, gyms, restaurants, and farms, businesses across various sectors have benefited from our flexible equipment financing solutions.

Here are examples of how equipment financing can support and expand your business, categorized into two main types:

Heavy Equipment Financing

Truck and equipment financing
Farm equipment financing
Gym equipment financing
Construction equipment financing
Automotive equipment financing
Drilling equipment financing

Commercial Equipment Financing

Packaging equipment financing
Restaurant equipment financing
Laundry equipment financing
Car wash equipment financing
Dental equipment financing
Medical equipment financing

Whatever your industry or equipment needs, our equipment financing options provide the support you need to enhance productivity and achieve business growth.

With this type of financing, you can finance the acquisition of various business assets, ranging from machinery, furniture, and vehicles to commercial ovens, tractors, construction vehicles, computers, desks, and office supplies.

Receive up to 100% of the equipment’s value

Business equipment financing allows you to obtain up to 100% of the equipment’s value. However, for high-risk investments, such as items prone to rapid depreciation, a down payment may be requested ranging from 10% to 20%.

The amount of funding you receive depends on your business’s eligibility and the equipment’s purchase price.

In most equipment financing programs, the equipment serves as collateral, making it feasible to secure loans or leases even if your credit history is less than perfect.

Flexible rates and terms

iBusinessLender’s lending options provide competitive equipment financing rates starting at approximately 8%, with terms typically ranging from 1 to 5 years. The duration of your agreement is primarily determined by the expected useful life of the financed item.

For example, financing a truck or construction equipment usually results in a longer term compared to computer equipment, which becomes obsolete more quickly.

Payments are scheduled on a daily, weekly, or monthly basis, depending on the terms of your specific agreement.

Typical Business Equipment Financing Terms*
Loan amount	Up to 100% of equipment value
Rates	8%-30%
Repayment terms	1-5 years

*Terms can vary by lender and borrower qualifications

Applying for equipment financing with iBusinessLender is straightforward:

Tell us about yourself, your business, and your funding requirements. Then, securely connect your bank account through our platform (or provide 4 months of bank statements). Submit a signed application and provide detailed information about the equipment you intend to acquire.

Details may vary depending on the equipment type, such as:

Condition (e.g., new or used)
Operating history (e.g., mileage or usage hours)
Seller details (e.g., private seller or vendor)

Whether you need financing for a costly piece of equipment that exceeds your budget or most of your capital is tied up elsewhere, a business equipment loan can be an invaluable solution. Let us help you find the ideal funding option for your needs.

Applying is quick, simple, and—most importantly—will not affect your credit score.

Exact qualifications differ by multiple factors. Generally, to secure equipment financing, you’ll need to meet specific criteria related to your time in business, annual revenue, and personal credit score.

What you’ll need to qualify: