Equipment Financing Calculator

Equipment financing is a loan specifically used to purchase business equipment. The equipment itself serves as collateral for the loan. If you default, the lender can seize the equipment. This makes it easier to qualify for than unsecured loans, and rates are typically lower.

Equipment financing rates typically range from 4% to 20% depending on your credit, business history, and equipment type. Established businesses with good credit can get 4-8%. Newer businesses or those with challenged credit may see 12-20%. Terms usually range from 2-7 years.

Finance (buy) if you want to own the equipment long-term and it has a long useful life. Lease if you need to upgrade frequently (technology), want lower monthly payments, or prefer tax deductions for lease payments. Financing builds equity; leasing offers flexibility.

Yes, but expect higher rates (15-30%) and larger down payments (20-30%). Lenders focus on the equipment's value as collateral. Online lenders and equipment dealers are more flexible than banks. A strong business plan and cash flow can offset credit challenges.

Almost any business equipment: vehicles, machinery, computers, medical equipment, restaurant equipment, construction tools, manufacturing equipment, office furniture, software. The equipment should be essential to your business operations and have resale value.