Equipment Financing

What is Equipment Financing?

Equipment financing is a type of loan that allows businesses to purchase the equipment they need without having to pay the full cost upfront. Equipment financing is typically offered by banks, leasing companies, and equipment vendors. The loan can be used to purchase a variety of business assets such as vehicles, machinery, computers, and office furniture. Businesses can either lease or finance the equipment depending on their needs and financial situation.

How Equipment Financing Can Help Your Business

Equipment financing can help your business by providing a costeffective way to acquire the necessary equipment to grow and expand. With equipment financing, you can purchase the equipment that you need without having to pay the full cost upfront. This allows you to spread out the cost over time, making it easier to manage your cash flow. Additionally, equipment financing can provide tax advantages, as certain types of equipment may be eligible for accelerated depreciation or other tax incentives. Finally, many lenders offer flexible terms and competitive rates for equipment financing, allowing you to find a loan that best fits your specific needs.

Qualifications to Obtain Equipment Financing

How Does Equipment Financing Work?

Equipment financing is a form of assetbased lending in which the equipment itself serves as collateral for the loan. You may be required to make a down payment of 10% to 25%, and the size of the down payment can affect your interest rate. Interest rates typically range from 4% to 40%, and repayment terms are usually five to six years, although some lenders may offer longer terms up to 10 years. The repayment period may also be based on the expected life of the equipment, so that if you default on the loan, the lender can still recover their losses by liquidating it.

Need More Assistance?

Small Business Loans

Pay for supplies and material, increase stock, hire great workers or combat a challenging season with our business loans.

$5,000 to $500,000

Business Loans for Minorities

When it comes to special qualifications or applications, Filthy Rich Idea will have your business covered. Let us get you the funding you need.

Ready to Apply?

Filthy Rich Idea makes it easy to apply for equipment financing for your business. Apply online and our lending partner, Business Funding Now, will give you a decision within minutes. One of their Loan Specialists will tailor a loan package for your business needs. As soon as your application and documents are received, a dedicated Funding Advisor will be in touch to discuss the application and next steps if approved. Approval typically takes 24-48 hours, and funds can be deposited into your account the following business day. It’s that simple!

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FAQs

What information and documents do I need to apply for funding?

Our lending partners will need 3 months of bank statements, the government IDs of all applicants, 1 or 2 years of business tax documents, business P&L and balance sheets, business licenses and formation documents, and a business EIN.

What is APR?

APR stands for Annual Percentage Rate and is a measure of the cost of borrowing money. It is the interest rate expressed as a yearly rate, including fees and costs associated with the loan. It's a good way to gauge the overall cost of your loan and your planned repayment schedule.

How long does it take to get the money once my business is approved?

Once approved, transfer times vary depending on the lender, but it is possible to receive your capital in as little as 72 hours after approval. Lines of credit, on the other hand, may be used immediately upon receiving approval in some cases.

How do I pay back the funding amount?

Our lenders offer secure digital payment portals so that you can make your repayments on time and without penalty. You may be able to change due dates and other important information.

How To Best Prepare for a Business Loan

Determine the amount of money you will request—and do not request an excessive amount.

Although you may have the option of a small business loan, it is important to only request the amount of money that you need and can afford to pay back. This will demonstrate to your lender that you are financially responsible and increase your chances of approval.

Understand the limitations and costs of your loan.

Before committing to a loan, be sure to consider the speed, flexibility, and cost. Some loans are more or less flexible while others charge for speed. Understand the APR and other associated fees and costs so you can make an informed decision.

Avoid taking out multiple loans.

If you already have a loan, it is not advisable to take out another one. This is calledstacking loans and is generally not allowed, except in certain cases (e.g. having a business line of credit with a term loan). If you stack loans without the permission of your original lender, you could be in breach of your loan agreement and default on your first loan. Before taking on another loan, check with your lender to make sure it is allowed.

Ready to Apply?