Equipment Leasing & Financing FAQ

Equipment financing (often an Equipment Finance Agreement, or EFA) lets your business buy equipment and repay it over a set term with interest. You own the equipment from day one, and it serves as the collateral. Financing can cover up to 120% of the equipment cost, including soft costs like delivery and installation.

With a lease, the leasing company buys the equipment and your business pays to use it for a set term. At the end of the lease you can buy the equipment (for $1, fair market value or a set percentage, depending on the lease type), return it, or renew the lease.

Almost any business equipment: heavy machinery and construction equipment, medical and healthcare equipment, office technology and IT hardware, manufacturing and production tools, restaurant equipment, and commercial trucks, vans and trailers. If you sell it or use it to make money, ask us.

Finance (EFA) if you want to own the equipment, it has a long useful life, and you want depreciation and Section 179. Lease if you want the lowest payment or plan to upgrade often. See our lease vs. EFA comparison.

It depends on the amount. As a guide: $3,000–$49,999 usually needs a 600+ FICO, and $50,000 and up usually needs 650+. With 725+ credit and 5–7 years in business, requests up to about $250,000 can be application-only. See the full credit guidelines.

Most requests up to about $150,000 need only the application and recent bank statements. Larger requests usually need 2 years of business and personal tax returns, a personal financial statement, and interim financials (P&L and balance sheet).

Yes, often. Startups with strong personal credit are considered, usually with a down payment, a security deposit or additional collateral. Application-only approvals for startups generally go up to about $50,000.

You may still qualify, typically with a down payment, security deposit or extra collateral. Past bankruptcies are considered with re-established credit, generally 3+ years after discharge.

We pre-qualify you with a soft inquiry, which doesn’t affect your score. Most equipment lenders run a hard inquiry once you’re moving forward with an approval, so avoid shopping your file to several brokers at once.

• Fair Market Value (FMV) lease: the lowest payment. At the end, buy it at fair market value, keep leasing, or return it.
• $1 buyout lease: you own the equipment at the end for $1, much like a financed purchase.
• 10% purchase option lease: buy the equipment for 10% of its original cost at the end.
• TRAC lease: for trucks and trailers, with a set residual value.

More detail: types of equipment leases.

• Lower upfront cost and often a lower monthly payment
• Flexibility to upgrade equipment at the end of the term
• Lease payments may be deductible as a business expense (ask your CPA)
• Keeps your bank lines of credit free for other needs

• You own the equipment at the end of the term
• Tax benefits such as depreciation and Section 179 (ask your CPA)
• Fixed, predictable monthly payments
• Preserves your working capital and cash flow

Yes. New and used equipment from dealers, auctions or private sellers can be financed. Terms and rates depend on the age and condition of the equipment, and used equipment can go up to 60 months.

Most equipment financing reports to your business credit rather than your personal credit. A personal guaranty is usually required, though, and established corporations may qualify for corporate-only (no personal guaranty) programs.

• Application and documentation fees
• Origination fees
• Title, admin or sales tax fees
• Advance or balloon payments, depending on the structure

Always review your contract carefully. We show you the full payment schedule and costs before you sign.

Typically 12 to 72 months, depending on the equipment, whether it’s new or used, and your credit and time in business.

Not always. $0 down is available on approved credit. Startups and lower-credit files are usually structured with a down payment or security deposit.

Yes. Leases and EFAs can’t be cancelled, so an early payoff settles the remaining obligation. Many EFAs have no prepayment penalty fee, and we show you the payoff figure before you sign.

Contact us right away. We may be able to help restructure payments or find other accommodations with the lender. Ignoring missed payments can hurt your credit and your ability to borrow later.

Most applicants get a decision within 24–48 hours. Funding usually follows within a few days, depending on the transaction and vendor verification.

From about $3,000 up to $5,000,000. Up to about $250,000 can often be done on the application alone, and larger amounts need financial statements.

Yes. We pay each vendor directly and combine everything into one monthly payment. A bill of sale is accepted for some private-party purchases.