Equipment Financing.
Ideal for businesses needing equipment without upfront capital. Covers up to 100% of new or used equipment costs, with repayment terms up to 10 years and funding in as little as 24–48 hours.
Overview
What is equipment financing?
Equipment financing provides business owners with a solution to finance the full cost of both brand new and used equipment needed for their operations! Everything from machinery and tools to vehicles, computers and more! Equipment financing loans are self-secured, so the equipment itself serves as collateral, and the application process is simple, requiring very little paperwork!
Equipment Serves as Collateral
Equipment financing is self-secured — the equipment you finance will serve as collateral for the loan.
Wide Range of Uses
Equipment financing can be used to finance a wide range of equipment — anything from vehicles to computers!
Fast Funding
You can receive funds to make your equipment purchases in as little as 1–2 days!
Eligibility
Do I qualify?
Minimum Qualifications
- 600+ personal FICO score
- At least 1 year in business
- $100,000+ in annual revenue
What You Need to Apply
- Basic info about your business
- Business checking account
- Last 3 months business bank statements
Applying is free and won't impact your credit score.
How It Works
How does equipment financing work?
Asset-Based Financing
Equipment financing is secured by the equipment itself, making it easier to qualify for than other loans. You won't need additional collateral, though a down payment of 10% to 25% may be required.
Interest Rates & Terms
Interest rates typically range from 4% to 40%, with repayment terms usually between 5 to 6 years. Some lenders offer longer terms up to 10 years, aligned with the equipment's anticipated useful life.
Quick Funding
Equipment financing provides quick access to funds, often within 24 to 48 hours, allowing you to purchase necessary equipment promptly and keep your operations running smoothly.
Key Difference
Equipment financing vs. equipment leasing
Lenders may also offer equipment leasing, which differs from equipment financing:
Ownership: With an equipment loan, you own the equipment at the end of the repayment period. With leasing, you have the option to purchase the equipment at the end of the term or enter into a new lease.
Cost: Equipment leasing can be more expensive in the long run compared to equipment financing. Leasing may be preferable if you need to upgrade equipment frequently.
Step by Step
How to get equipment financing
Before applying, it's important to evaluate your funding needs. Here's a step-by-step guide to help you secure the necessary funds for your business equipment.
Assess Your Funding Needs
Identify Your Purpose: Determine the specific equipment you need to purchase. Whether it's machinery, vehicles, or technology, having a clear objective will help you decide the appropriate loan amount.
Calculate the Amount: Make a detailed estimate of the total cost, including any additional expenses associated with the purchase. This ensures you don't fall short of funds.
Evaluate Your Eligibility
Business Revenue: Lenders will assess your business's revenue to gauge your ability to repay the loan. Typically, they look for $100,000+ in annual revenue. However, lenders in our network often have more flexible requirements, which is advantageous for newer or smaller businesses.
Credit History: Your credit history is crucial in evaluating your financial reliability and risk of default. Most lenders look for a personal FICO score of 600+. A higher credit score can improve your chances of receiving more favorable terms.
Time in Business: Traditional banks usually require a business to be active for at least two years. In contrast, lenders in our network often only require a minimum of one year. A longer operational history can convey stability to lenders, potentially leading to lower rates and better terms.
Submit Your Application
Applying for equipment financing at Ridgepeak Capital is designed to be quick and easy. Our online application process can be completed in just a few minutes. During the application, you will be asked to provide details about your business which includes the owner's information, general business information, the last three months of bank statements, identity verification documents, and a business checking account.
Once submitted, our advanced algorithm swiftly evaluates your business profile to match you with the ideal lenders, ensuring a perfect fit for your financial needs. If approved, you will receive equipment financing offers to review and select the best offer that suits your needs. This enables you to access the capital your business requires, often within as little as 24 hours.
Considerations
Pros & cons
Pros
- Quick funding for equipment purchases
- Equipment serves as collateral — no additional assets needed
- Limited paperwork and fast application process
- Covers up to 100% of equipment cost
Cons
- Only applicable to businesses needing equipment
- Equipment may become obsolete before loan repayment
- A down payment of 10–25% may be required
Our Process
Our application process is easy
Apply Instantly
Fill out our quick and easy online application. It only takes a few minutes and won't affect your credit score.
Discover Your Options
Receive personalized funding offers, carefully curated to align with your business goals and requirements.
Get Funded
Choose the best funding offer for you and access the capital your business needs in as little as 24 hours.
FAQs
Equipment Financing FAQs
Common questions about equipment financing for your business.
Still have questions? Contact us →What types of equipment can I finance?
Equipment financing covers a wide range of business equipment including machinery, construction equipment, commercial vehicles, computer systems, restaurant equipment, medical devices, manufacturing tools, and more. Both new and used equipment can typically be financed.
What's the difference between equipment financing and leasing?
With equipment financing, you own the equipment once the loan is paid off. With leasing, you essentially rent the equipment and have the option to purchase it at the end of the lease term. Financing is usually more cost-effective long-term, while leasing can be better if you need to upgrade equipment frequently.
Do I need a down payment?
It depends on the lender and your business profile. Some lenders offer 100% financing with no down payment, while others may require 10% to 25% down. Stronger credit profiles and longer business histories tend to qualify for lower or zero down payment options.
How fast can I get funded?
Equipment financing can be approved and funded in as little as 24 to 48 hours, allowing you to purchase the equipment you need promptly. Funding speed depends on the lender, loan amount, and completeness of your application documentation.
Can I finance used equipment?
Yes, most lenders in our network finance both new and used equipment. The terms and rates may vary depending on the age and condition of the equipment, as the equipment serves as collateral and its value affects the loan structure.
Ready to finance your business equipment?
Apply in minutes. No impact to your credit score, and funding can arrive in as little as 24 hours.
Apply NowHave questions? Talk to an advisor.
Our business advisors can help you find the right financing for your needs.
Contact Us*The content provided on this page reflects the opinions and insights of Ridgepeak Capital, based on our research, methodologies, evaluations, and various additional considerations. This information is accurate as of the initial publication date. Ridgepeak Capital makes every effort to update and maintain the accuracy of this content, however, the information may differ from what you may find on other platforms. All information is presented without any warranty. We encourage you to carefully review the terms and conditions, relevant policies, contractual agreements, and all applicable details of the financial institution when considering offers. The ranges mentioned here do not represent pre-qualified offers. Ranges may be greater or less based on the information provided in your business financing application. Ridgepeak Capital may receive compensation from financial institutions reviewed on this page if you proceed to obtain business financing through them.