Equipment Financing

What is equipment financing?

Equipment financing is funding used to buy specific business equipment — machinery, vehicles, technology, and other assets that help your business operate and earn revenue. Instead of paying the full price upfront, the business spreads the cost over time.

In many equipment financing arrangements, the equipment being purchased helps secure the financing. That can make it a practical way to add capacity while keeping cash available for operations. Common structures include equipment loans and equipment leases, and the right one depends on the equipment, the amount, and your business profile.

Common uses

• Buying new or used machinery and production equipment
• Adding or replacing commercial vehicles and trucks
• Upgrading technology, systems, or specialty equipment
• Outfitting a new location, kitchen, clinic, or facility
• Replacing aging equipment before it slows the business down

Who it may fit

Equipment financing can suit businesses that know what they need to buy and want to spread the cost over time — whether that's a construction or transportation company adding vehicles, a manufacturer adding capacity, a healthcare practice upgrading equipment, or a restaurant outfitting a kitchen. Established operators with steady revenue are often in a stronger position, but every request is reviewed on its own merits.

Existing financing doesn't automatically rule you out. What matters is whether the overall picture is manageable.

What information may be needed

An equipment request usually starts with the equipment itself. Commonly requested items include:

• A vendor invoice or quote showing the equipment and price
• Recent business bank statements, including all pages
• Business formation documents, such as articles of organization or incorporation and the operating agreement or bylaws
• A photo ID for each owner with 20% or more ownership

Larger requests may call for additional financial statements. You'll only be asked for what a given option actually requires, and documents are collected through a secure upload link — never through this website's forms.

Equipment financing or working capital?

If you're financing a specific asset, equipment financing ties the funding to that purchase. If your needs are broader — payroll, inventory, or general operating costs — working capital financing or a business line of credit may be a better match. Your advisor can help you compare.