Use Cases
Business Equipment Loans & Financing
You need equipment to run your business; find out why pursuing equipment loans can benefit your business.
We're a Funding Partner with a Proven Track Record
Since 2008, we've grown with companies we support.
$4 billion
distributed
55k+
companies funded
A+
with BBB
What Are Business Equipment Loans?
Business equipment loans help businesses purchase necessary equipment, such as machinery, vehicles, medical equipment, office equipment, restaurant equipment, agricultural equipment, and more. All of these materials help businesses operate at their best capacity. If you’re searching for equipment loans for your small business, we have funded over $4 billion to more than 55,000 businesses like yours.
How Equipment Loans & Financing Work
Equipment lending is different from leasing when it comes to business equipment. Loans are best if you have at least 20% to put down on a piece of equipment. They work by giving businesses funds to replace old or broken equipment, buy new equipment for the purpose of expansion, or add more items of the same kind to your equipment inventory.
Use Cases
How To Use a Business Equipment Loan
A loan for equipment can only be used for that purpose. These types of loans are not intended to alleviate cash flow problems, but to instead ensure that your equipment is always in working order.
Repairs
Equipment repairs are crucial to keeping your business running smoothly–but they can be expensive. Check out How Much Should Heavy Equipment Repair Cost for an idea. A business loan for equipment can help you cover essential repairs and keep operations on track.
Upgrade
When you're ready to give up outdated gadgets and upgrade, equipment business loans give you the funding you need.
Lease
Equipment loans for small business will help you lease anything from copiers to manufacturing equipment.
Why Apply for an Equipment Loan?
Improve Your Business Operations
Business equipment loans give you the ability to help your business operation run more efficiently. It'll free up cash to be used in other areas of the company.
Ability to Repair Existing Equipment
Repairs are often more affordable than buying new. You can fund all of your repairs using equipment loans.
Purchase New Equipment
If the old isn't cutting it anymore, then a new piece of equipment is a must have. Small business equipment loans give you the opportunity to get something new.
How to Apply for Equipment Financing?
1
Apply
Click the below and complete the quick online application, and a Capital Specialist will reach out within minutes to discuss your funding needs.
2
Get a decision
We'll provide our funding recommendation within 4 hours.
3
Receive your funds
You’ll receive a lump-sum payment within 24 to 72 hours, ready for you to use at your own pace as needed.
Pros & Cons of Equipment Financing & Loans
Pros
Receive Money to Buy, Repair, or Lease Equipment
Spread the Cost of Your Purchase
No Need for Additional Collateral
Increase Your Business's Future Sales
Cons
Usage May Be Restricted to Equipment, Depending on Lender
Higher Rates Than Traditional Loans, Depending on Lender
You Own the Equipment and Are Responsible for Its Maintenance
What Industries Can Apply for Equipment Financing?
Fora Financial provides equipment financing for various industries, helping businesses acquire essential equipment quickly and affordably. Explore some of the industries below to learn more.
Eligibility Requirements for Equipment Financing
You may qualify for a business equipment loan if you meet the minimum requirements below. Contact us to apply.
Minimum Requirements
| Time in Business | Minimum 6 Months |
|---|---|
| Business Annual Growth Revenue | $240K+ Annual Revenue |
| Business Checking Account | Yes |
| US Citizen/Based Company | Yes |
| FICO Score | 570+ |
| Other Financing | None |
| Bankruptcies | None open |
Better Your Business With Fora Financial
Add To Your Existing Inventory
Upgrade Out-of-Date Equipment
Replace Old Equipment
Lease Items You Need
Spread the Cost of Your Purchase
Increase Future Sales
Case Studies
Featured Funding
Delivery Service Expansion
Funding Amount: $7,000,000
Industry: Construction
Use of Funds: Bridge funding
Featured Funding
Communications Expansion
Funding Amount: $1 Million
Industry: Telecommunications
Use of Funds: Expansion
Business Equipment Loans FAQ
How Do You Get Equipment Financing?
You'll need excellent credit to get equipment financing. Applying through your local bank or an online financing company like Fora Financial can help you discover what kinds of business equipment loans you can qualify for.
Is It Hard To Get An Equipment Loan?
It depends on how much money you need and your qualifications. Businesses with good credit that have a good history are more likely to get equipment loans. It's important to find out what lenders are looking for before you apply for a loan.
What Credit Score Is Needed For An Equipment Loan?
You can get equipment financing in some cases even with a poor credit score. If the equipment is something that they could repossess in the event of a default, they are more likely to offer financing. It's best to work on getting a good business credit score to help improve your options when you need equipment loans.
What Is The Interest Rate On Equipment Loans?
Some equipment loans have interest rates almost as high as 10%. Businesses with poor credit are more likely to get higher interest rate loans than those with good credit. Some interest rates are as low as 2.8% and businesses with great credit and a good business history are more likely to get that rate.
How Long Can You Finance Used Equipment?
You can finance equipment from two to seven years. The lender will determine if the used equipment you want to purchase is eligible for a longer or shorter term loan.
Can You Use Section 179 Tax Deduction For Equipment Financing?
Yes, you can use the Section 179 tax deduction for equipment financing for your business. This write-off allows you to deduct the entire purchase price of the equipment you purchased in the qualifying year. A good accountant will ensure that all your expense are accounted for and deducted correctly.
What Are Typical Terms For Business Equipment Financing?
Typical business equipment financing terms range from 1 to 7 years, depending on the equipment’s type and expected lifespan. Interest rates and payment structures vary by lender, but terms are usually designed to align payments with the equipment’s useful life.
What Is An Equipment Finance Agreement?
An Equipment Finance Agreement (EFA) is an arrangement where you receive funds to purchase equipment and own it from the start. You make regular payments, and the lender holds a security interest in the equipment until it’s fully paid off. This setup may allow for predictable payments and potential tax benefits.
What Are The Benefits Of Equipment Financing Loans?
Equipment financing loans help preserve cash flow by eliminating the need for a large upfront payment. With this type of funding, you can purchase the equipment outright, avoiding the constraints of leasing or making payments to the seller. Fora Financial offers equipment financing for small businesses with fast approvals, prepayment discounts, and funding up to the $1.5 million with no usage restrictions.
Can You Get Business Equipment Loans With Bad Credit?
Lenders like Fora Financial typically focus more on the equipment’s value and business performance than credit scores. Look for a business equipment funding company like Fora Financial that does no hard credit pulls; Fora Financial does one soft inquiry when you apply.
What Types Of Equipment Can Be Financed Through Business Equipment Loans?
Almost any business equipment can be financed, including machinery, vehicles, technology, and tools. Financing options vary based on the equipment’s type and purpose.
Can Anyone In Any Industry Get Equipment Financing Loans?
Most industries are eligible for equipment financing, from healthcare and construction to retail and manufacturing.
Can I Pay Off My Equipment Financing Loan Early?
Fora Financial offers prepayment discounts. If you want to pay us back yearly, great!
What Sets Us Apart from the Rest
Excellent
★★★★✩
Based on 868 reviews
★ Trustpilot
Get Financing Today
Get started with your application and join Fora Financial's family of forward-thinking businesses.
Give Us A Call
972-200-0728
