Running a small or mid-sized business often means juggling competing financial priorities. Whether it’s investing in growth, hiring talent, or upgrading operations, capital allocation is never an easy decision. One area where strategic financial planning makes a big difference? Equipment.
From delivery vehicles and diagnostic tools to commercial ovens or CNC machines, equipment is often the heartbeat of your business. But purchasing it outright can drain working capital. That’s where equipment financing comes in—a flexible, accessible solution that helps you grow without sacrificing liquidity.
In this guide, we’ll walk you through the essentials of equipment financing, explain how it works, and help you determine if it’s the right move for your business.
Equipment financing is a funding solution that allows businesses to acquire machinery, vehicles, or technology through financing or lease, rather than paying upfront in full.
Let’s break it down:
How is this different from a line of credit or business loan?
Unlike general-purpose loans, small business equipment financing is tied to a specific asset. They often come with fixed terms and lower rates, and the equipment itself typically serves as collateral—making it easier to qualify.
Understanding the process helps you plan ahead and make confident decisions. Here’s how it usually works:
Work with your vendor or supplier to identify the equipment that best fits your operational needs and budget.
You’ll provide basic business and financial information—think time in business, revenue history, and credit profile. Most applications can be completed online or through a lending partner.
Many SMB lenders offer fast decisions—sometimes within hours. The process is generally quicker than traditional bank loans, especially with SMB equipment lease providers that specialize in specific industries.
Most agreements include monthly payments over a fixed term (often 12–60 months). Structures may vary based on creditworthiness, equipment type, and term length.
There are multiple advantages to financing equipment, especially for growing businesses:
Avoid large upfront costs and keep cash available for payroll, marketing, or emergencies.
Access the latest equipment or technology without waiting to build reserves—boosting productivity and efficiency right away.
Take advantage of deductions like Section 179, which allows you to deduct the full cost of financed equipment in the year it’s placed into service.
Timely repayment of your equipment financing builds your commercial credit profile, making future borrowing easier and more favorable.
With financing, you can expand operations, take on more work, or open new locations without disrupting your cash flow.
Equipment financing isn’t just for factories and construction sites. Here’s how different industries use it:
If the equipment helps generate revenue or operational efficiency, chances are it can be financed.
While requirements vary, lenders typically evaluate:
Like any financial decision, it’s important to do your homework:
Just because you can finance it doesn’t mean you should. Make sure the equipment fits your growth plan and ROI expectations.
Read the fine print. Understand your interest rate, residual value, early payoff terms, and maintenance responsibilities.
Not all lenders are created equal. Look for a partner who understands your industry, offers transparent terms, and provides real support—not just paperwork.
Equipment financing isn’t just about spreading payments—it’s about unlocking potential. Whether you’re replacing outdated tools, expanding operations, or launching new services, small business equipment financing and leases help you preserve capital, scale smartly, and position your business for long-term success.
Ready to explore your options?
Talk to a financing expert at (603) 696-7076
Or contact us to learn how to finance equipment for your growing business.
FPG: Real People. Real Expertise. Real Growth.
Helping you finance what’s next—so you can build what’s next.