Equipment FinancingSmall BusinessLeasingCapital
The Small Business Owner's Guide to Equipment Financing
Avery MezzanotteJune 1, 20267 min read
Why Equipment Financing Makes Sense
Whether you're a restaurant needing a new commercial oven, a contractor eyeing heavy machinery, or a tech company upgrading servers — equipment is expensive. Equipment financing lets you spread the cost over time.
How Equipment Financing Works
Equipment financing uses the equipment itself as collateral. You receive funds to purchase equipment, and you repay over a set period.
Equipment Loans vs. Equipment Leases
Equipment Loan: You own the equipment outright after repayment. Best for equipment with a long useful life. Equipment Lease: Lower monthly payments. Option to upgrade at lease end. Best for technology that becomes obsolete quickly.What You Need to Qualify
- Time in business: 1+ year
- Credit score: 600+
- Revenue: Enough to cover monthly payments
- Equipment quote: Detailed quote from the vendor
Tax Benefits
Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the year it's purchased (up to $1.16 million in 2026).
Need equipment financing? Apply now and get connected with the right funding partner.