What is Equipment Financing?

Equipment financing is used specifically for large equipment purchases – like starting a Knockerball business. Getting an equipment loan is usually the easiest way to purchase new equipment for your business.

How Does Equipment Financing Work?

Making large purchases of vital equipment is unavoidable for most businesses, brand-new and well-established alike. New equipment can help your business to bring in more revenue – like additional Knockerballs to meet higher demand. Handing over the cash for these purchases can set you back a significant amount, and that’s what makes equipment financing an attractive option for expanding, starting or updating a business.

Benefits of Equipment Financing

  • Preserves Your Cash
  • Limited paperwork
  • The equipment serves as collateral

How Do You Apply for Equipment Financing?

Like most loans, you’ll need to provide the financial health of your business along with your credit score. Most equipment lenders will also ask for information about the equipment you’re looking to buy and a quote of how much it will cost. 

What You’re Going to Need:

  • Driver’s License
  • Business Tax Returns (for loans above $150k)
  • Voided Business Check
  • Credit Score
  • Bank Statements (for those lacking credit)
  • Equipment Price Quote

Who Qualifies for Equipment Financing?

Most businesses in good standing will qualify for equipment financing loans. It can actually be a good option if your credit score is on the lower end because the equipment you’re financing acts as the collateral. The details of how much and for how long depend on the type of equipment and its cost. Lenders are interested in securing a loan, so when you’re financing equipment, they’re often not as concerned with your borrowing history because the equipment acts as collateral.
What Else Should You Know About Equipment Financing?
  • When your business doesn’t have enough cash to purchase a new piece of equipment upfront, equipment loans are the best option.
  • You use them the same way an individual would use a car loan, and then pay them back via monthly payments.
  • How much you can borrow depends on what you’re looking to finance, and the price will dictate the terms and interest of the loan.
  • The equipment itself acts as collateral, so you won’t need to put up additional collateral to secure the loan. This self-secured loan is often easier for some businesses to qualify for.

Not Sure if Equipment Financing is Right For You?

Let us walk you through your options and help you decide which program is right for you.
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