Equipment financing
The asset secures the money, which is why this is usually the cheapest way to buy it.
| Typical amount | Speed | Typical term | Secured by |
|---|---|---|---|
| $10,000 – $1,000,000 | Often 2–7 business days | 2–7 years | The equipment itself |
What equipment financing actually is
The equipment being purchased serves as collateral. That materially reduces the funder's risk, and it is why equipment financing usually prices below an unsecured term loan for the same business.
It covers new and used: trucks and trailers, kitchen lines, dental chairs, CNC machines, lifts, refrigeration, POS systems.
When it fits
- You are buying a specific, identifiable asset with a resale market.
- The asset produces revenue: a truck that runs loads, a lift that adds a bay.
- You would rather preserve cash and working capital lines for operations.
- The useful life of the asset is longer than the financing term.
When to think twice
- It only funds the asset. It will not cover payroll or inventory alongside it.
- The funder holds a lien until it is paid off.
- Specialised equipment with a thin resale market prices closer to unsecured.
The honest version
Common in
- Restaurants & food service Thin margins, daily receipts, and equipment that fails at the worst possible moment.
- Trucking & logistics Fuel and drivers are paid now. Brokers pay in thirty to sixty days.
- Construction & contracting Materials up front, progress billing, retainage held to the end.
- Medical & dental practices Insurance reimbursement is slow, and the equipment is expensive.
See what you qualify for
Four minutes, a soft credit check, and a real answer, including when a different instrument suits you better.