Equipment Financing
The equipment is the collateral, so the terms are better.
A lender who can repossess a truck sleeps better than one who cannot, and the difference shows up in your rate. Equipment financing pays for a specific asset, a Freightliner, an excavator, a CNC machine, a dental chair, a walk in cooler, and takes that asset as security. The business keeps its cash, the rate is lower than unsecured borrowing, and the term stretches to match the working life of the machine.
We arrange equipment loans and leases from $10,000 to $5,000,000 through lenders that specialise by trade. A trucking lender knows what a 2019 Cascadia with 400,000 miles is worth; a medical lender knows a CBCT scanner. Most of our work is matching the asset to the lender who understands it.
How it works
- 1
Tell us what you are buying, from whom, and for how much. A vendor quote or invoice is enough to start.
- 2
The lender approves the business and the asset together. New equipment and well known used equipment pass easily. Obscure or very old equipment is harder.
- 3
At closing the lender pays the vendor. You take delivery and begin monthly payments over two to seven years.
- 4
A loan means you own the equipment from day one. A lease means you pay for its use, with a purchase option at the end, for one dollar or for fair market value.
Where it fits
- ●Owner operators and fleets adding or replacing trucks and trailers.
- ●Contractors buying excavators, loaders, lifts and specialty tools.
- ●Restaurants fitting out a kitchen. Medical, dental and veterinary practices buying diagnostic and treatment equipment.
- ●Manufacturers and printers upgrading a production line.
Where it does not
- ●Working capital. The money goes to the vendor, not to your account.
- ●Equipment with no resale market or that loses value fast. Lenders decline it or want a large down payment.
- ●Owners who plan to sell the equipment within the year.
What it typically costs
Annual rates run from the high single digits, for an established business with strong credit buying new equipment, to the twenties for a newer business or older used equipment.
Many lenders finance the full price, delivery and installation included. Some want 10 to 20 percent down. Documentation fees of $200 to $500 are standard.
Enrichment Capital charges you nothing.
Ranges describe offers commonly seen through our network and are not a quote. Every offer we present shows its own amount, cost, term, payment schedule and total repayment before you sign.
Who usually qualifies
- ●Start ups with strong owner credit and experience in the trade can qualify for vehicles and common equipment. Most lenders prefer two years in business.
- ●Owner credit of 600 and above with a larger down payment; 650 and above for the better programmes.
- ●Equipment that can be identified, insured and resold, with a vendor invoice or quote.
Questions owners ask
Can I finance used equipment?+
Yes. Most lenders take trucks up to about ten years old and heavy machinery up to fifteen, and go older for well maintained assets with a strong resale market.
Should I lease or buy?+
Buy with a loan when you will keep the asset for its full life. Lease when the technology ages quickly, when you want the lower monthly payment, or when the tax treatment of a lease suits you. Your accountant should weigh in on the last point.
How much down payment is required?+
Often none for an established business buying standard equipment. Newer businesses and older equipment commonly need 10 to 20 percent.
How long does equipment financing take?+
Under $150,000, approval the same or next business day and funding within the week, provided the vendor paperwork is in order.
Does equipment financing require a personal guarantee?+
Yes, for businesses under five years old or amounts under $250,000. Some larger, established businesses qualify for corporate only approval.
Begin with a conversation
One application, a few minutes, your last three months of statements. A member of our team reads the file personally and tells you where you stand, usually within one business day.
Apply for financing