Equipment Financing
Equipment financing can help a business acquire machinery, vehicles, technology or other eligible assets while spreading payments over time. The equipment commonly supports the financing as collateral, but structure, security and ownership terms vary by partner and agreement.
Quick Facts
Loan Amount
Partner-specific - Partner-specific
Rate / Cost
Varies
Funding Time
Varies
Term Length
Varies
Key Benefits
- New and used equipment eligible
- Financing amounts depend on the asset and applicant
- Term length depends on the asset and partner
- Equipment may serve as collateral
- Preserve working capital
Requirements
- Business profile and revenue review
- Equipment quote or invoice
- Business financial documents may be required
- Credit and asset eligibility review
Ideal For
Key facts
Reviewed by Apply For Financing editorial team on 2026-08-28. Apply For Financing introduces businesses to financing partners and does not lend.
- Equipment financing helps a business buy or refinance eligible machinery, vehicles or technology and spread the cost over time.
- Apply For Financing introduces businesses to third-party financing partners. We do not lend and we do not own the equipment.
- The financed asset commonly serves as collateral. A partner may still require a down payment, personal guarantee or additional security.
- We do not publish a typical rate band because partners price the asset, residual value and applicant together.
- A loan and a lease are different. A loan is intended to end in ownership; a lease may end in return, renewal or a stated buyout.
- New and used equipment can both be eligible. Age, condition and resale market affect term length and advance rate.
- Partners typically ask for an invoice or quote, business financials and proof the asset will be used in the business.
- This product is usually a poor fit for covering payroll with no identifiable asset.
How this product is usually structured
| Typical use | Machinery, vehicles, medical, restaurant or tech assets |
|---|---|
| Cost basis | Interest, fees and any residual or buyout |
| Amount | Tied to the invoice and the partner's advance rate |
| Term | Often matched to useful life of the asset |
| Repayment | Monthly instalments; residual buyout if leased |
| Security | The equipment, plus possible guarantees |
| Timing | Partner-specific after vendor and credit review |
| Main risk | Owing more than the asset is worth if it depreciates fast |
Who it is usually for
- A business that will use the asset in operations
- A vendor quote or invoice the partner can review
- Revenue and credit that meet the partner's file standard
What partners typically ask for
- Equipment quote, serial details and vendor identity
- Business financial statements or tax returns
- Down-payment source if required
- Insurance once the asset is delivered
Loan versus residual lease on a $80,000 asset
Suppose a partner finances $80,000 of equipment at 9% for 60 months with no residual. The amortizing payment is about $1,661 a month and total interest is about $19,660. The same asset structured as a lease with a 15% residual ($12,000) lowers the monthly payment because part of the cost is deferred to the buyout. Ownership, tax treatment and early-termination costs then differ. Use the equipment calculator to change residual and down payment; neither path is an offer.
Alternatives and when this is not a fit
Working capital
If you need cash and there is no specific asset to pledge.
SBA 504 or 7(a)
US program options when the asset is a major fixed investment.
Equipment calculator
Model down payment, residual and estimated ownership cost.
- Soft costs or payroll with no equipment invoice
- Assets the business will not own or control
- Highly specialized equipment with no resale market, unless a partner accepts that risk
US partners may file a UCC-1 on the asset. SBA 504 can apply to eligible major fixed assets through a certified development company and a participating lender.
Sources
- US Small Business Administration — 504 loans — as of 2026-08-28
- ISED — Canada Small Business Financing Program — as of 2026-07-09
Submitting the application form sends your details so we can introduce you to a financing partner. Partners may compensate us. We do not guarantee an offer.
Frequently Asked Questions
Have more questions? Visit our full FAQ page or contact us.
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