What it is
Equipment financing is a category of business funding generally structured around the purchase or lease of a specific asset. The asset itself often serves as collateral. Repayment structures and ownership terms vary by provider and product type (loan vs. lease).
Who it may be suitable for
- Contractors and construction businesses
- Trucking and transportation operators
- Restaurants and food service businesses
- Healthcare practices acquiring equipment
- Manufacturers and other asset-heavy businesses
Common provider review factors
- Type, age, and value of the equipment
- Vendor and invoice details
- Time in business and revenue history
- Credit profile
- Down payment or trade-in, if any
Important tradeoffs and considerations
- The equipment may serve as collateral
- Lease vs. loan structures differ in ownership and tax treatment
- Used equipment may have different terms than new
- Approval, rates, and amounts are determined solely by the third-party provider
Important disclosure
FUNDMOX is a business funding marketplace, not a lender, bank, or financial institution. FUNDMOX does not make credit decisions, evaluate eligibility, act as a credit broker, or guarantee approval. Final funding options, rates, fees, and terms are determined by third-party providers. Not all funding products are available in all states.