When your small business needs equipment but you don't have the cash to buy it outright, you have two options: leasing the equipment or financing it. Like the name suggests,
can be used to fund everything from vehicles to machinery. Typical industries who need to purchase expensive equipment include trucking, logistics, restaurant, construction, healthcare, auto lending and food trucks.
Your choice between Equipment Financing and
may depend on the equipment’s intended use and duration needed. Let’s break it down.
When Equipment Leasing, you’ll only be able to use the items while you’re making payments - sort of like an apartment lease. Leasing usually requires no down payment and no collateral, so you'll only be held responsible for the flat monthly payments for the duration of your lease agreement.
With Equipment Financing, you’ll own the items after you pay off your loan.
Equipment loans are relatively easy to qualify for, and the amount of money you'll be eligible to borrow is based on the type of equipment you're planning to purchase, and whether it's used or new.
And because the equipment you're purchasing can usually be used to secure the loan, it's unlikely you'll be asked to put up any additional collateral.
Which Option Is Right for You?
If you’ll need the equipment for a longer duration, equipment financing might be the right choice. However, if you’re looking for a more temporary solution, leasing your equipment might be the right fit.
Ready to apply?