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Equipment Financing 

What is an Equipment Loan?

An equipment loan is straightforward financing used by a business to buy a specific piece of equipment. The key feature is that the asset you're buying—whether it's a vehicle, a machine, or a tool—serves as the collateral for the loan itself. This setup allows a company to get the essential tools it needs to operate and grow without wiping out its cash reserves.

Uses of an Equipment Loan

The uses for equipment loans span nearly every industry. A construction company might finance a new bulldozer or crane. A restaurant could purchase commercial-grade ovens, refrigerators, or a point-of-sale (POS) system. A medical or dental practice may use it to buy X-ray machines, diagnostic tools, or patient chairs. A manufacturing plant can acquire CNC machines, presses, or assembly line robotics. A logistics firm might finance a fleet of delivery vans or commercial trucks.

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How it's paid

The loan's payment schedule is typically fixed, with a term that matches the equipment's expected useful lifespan. Once you make the final payment, your business owns the asset outright.

Finance Lease (Capital Lease)

This type of lease is essentially a purchase agreement disguised as a lease. The customer usually has the option to buy the equipment for $1.00 or another fixed, pre-agreed price at the end of the term. For accounting purposes, this is treated as an asset and a liability on the balance sheet.

Leasing Programs

Operating Lease

An operating lease is structured so that the customer's payment is based on the equipment's value minus its expected residual value (what it's worth at the end of the term). Advantage: This structure typically results in lower monthly lease payments compared to a Finance Lease.

TRAC Lease
(Terminal Rent Adjustment Clause)

A TRAC lease is an open-ended lease primarily used for vehicles, trucks, and self-propelled equipment. It includes a predetermined residual value. End of Lease Options: The customer can buy the equipment for the predetermined TRAC value or return it. Risk/Reward: If the returned equipment's market value is higher than the TRAC value, the lender returns the net excess to the customer. If the value is lower, the customer is responsible for the difference.

True Lease

A True Lease is designed to be "off-balance sheet" financing. Accounting Benefit: It allows the lessee (customer) to expense 100% of the monthly payments, rather than having to depreciate the asset. End of Lease Options: The leasing company retains ownership, and the customer has the flexibility to purchase the equipment at Fair Market Value (FMV), return it, or continue renting.

Sale/Leaseback

This is an off-balance sheet financing technique where an owner sells an asset or property (like a building) and immediately leases it back on a long-term basis. Benefit: This arrangement helps the seller/lessee free up capital that was previously tied up in the fixed asset, while still retaining full use and possession of the property.

Synthetic Lease

A complex financing structure designed to be an Operating Lease for the lessee's financial accounting books but treated as a financing/loan for U.S. Federal tax purposes. Common Use: It is often used for the acquisition or construction of corporate headquarters, real estate projects, corporate aircraft, or other large equipment.

Qualifications

Equipment Finance
(App only up to $500K)

1

Equipment Plan 1

  • Application only up to $500K

  • 680+ FICO Score

  • Terms Up to 72 Months

  • 5+Years Time in Business

  • No Suits, Liens, Judgements or BK

  • No Paynet Scoring Required

  • Signed Credit Application

  • Equipment Invoice

  • Three Months Full Bank Statements

2

Equipment Plan 2

  • Application only up to $150K

  • 620+ FICO Score

  • Terms Up to 72 Months

  • 2+ Years Time in Business

  • No Open Liens, Judgements or BK

  • Signed Credit Application

  • Equipment Invoice

  • Three Months Full Bank Statements

3

Equipment Plan 3

  • Application only up to $75K

  • Terms up to 60 Months

  • Challenged Credits OK

  • 2+ Years Time in Business

  • Signed Credit Application

  • Equipment Invoice

  • Three Months Full Bank Statements

Equipment Finance
($500K+ Full Financials)

  • Signed Credit Application

  • Equipment Invoice

  • Three Year Financial Statements (Business and Personal)

  • Current Year Interim Financial Statements

  • Personal Financial Statement

  • Debt Schedule

  • Equipment/Purchase Justification

  • Three Years Tax Returns (Business and Personal)

*Published guidelines represent the minimum requirements for each program and are subject to lender discretion

Restaurant Equipment

1

Restaurant Equipment 1 

  • 5+ Years Time in Business

  • 700+ FICO

  • Expansions Accepted

  • Food Trucks will be accepted.

  • NO STARTUPS ACCEPTED

2

Restaurant Equipment 2

  • 2+ Years Time in Business

  • 700+ FICO

  • Expansions Accepted

  • Food Trucks will be accepted.

  • NO STARTUPS ACCEPTED

3

Restaurant Equipment 3

  • 3+ Years Time in Business

  • 650+ FICO

  • Expansions Accepted

    (with same DBA ONLY)

  • Food Trucks will be accepted.

  • NO STARTUPS ACCEPTED

*Published guidelines represent the minimum requirements for each program and are subject to lender discretion

Equipment Types

  • Agriculture

  • Audio/Video

  • Automotive

  • Aviation

  • Barbershop

  • Buses

  • Cannibus

  • Communication

  • Computers

  • Construction

  • Dental

  • Electronic

  • Emergency Vehicles

  • Energy

  • Fitness

  • Forestry & Logging

  • Furniture/Fixtures

  • Graphic Arts/Printing

  • Hair Salon

  • Healthcare

  • Industrial

  • Laboratory

  • Lumber Processing

  • Machine Tool

  • Manufacturing

  • Material Handling

  • Media

  • Medical

  • Mining

  • Municipality

  • Nail Salon

  • Office equipment

  • Pharmaceuticals

  • ​Point of Sale

  • Railway

  • Recycling

  • Recreation

  • Restaurant

  • Retail

  • Software

  • Solar

  • Surveying

  • Technology

  • Transportation

  • Truck & Trailer

  • Utility

  • Video

  • Waste Removal

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