FAQ: The Ultimate Guide to Equipment Financing

Posted by Marketing Team on Mar 23, 2018 10:32:09 AM


Whether you are buying equipment or selling equipment, this is for you! We're going to give you the scoop on financing so you don’t miss out on an incredible opportunity! Don't just take our word for it, check out some business testimonials at the bottom to see how financing has impacted real businesses in a variety of industries.  



What is equipment financing?

Equipment financing is using a lease to purchase a tangible or physical item for your business. For example, equipment financing might be used to purchase new or used equipment for your restaurant, salon, inflatables, or auto business to name a few.

Should I use my credit card instead of financing?

The average American has a credit score of 673 with an average available credit line of $2,500, limiting the amount they can purchase. By financing equipment, they can save their credit line and cash for emergencies and earn money while paying off their equipment costs.

What is the difference between equipment financing and a bank loan?

✓ Equipment Financing - Financing has flexible criteria for the approval process. The process is quick, easy and can typically get funded within a few days.

✓ Bank Loan - Traditional bank loans have strict criteria to get approved. It’s typically a slow, arduous process and can take weeks to get funding.


What is a lease-to-own structure?

Commercial lease-to-own structures are common within businesses; new, small all the way up to Fortune 500 companies. This structure allows your customers to make minimum payments with an option to purchase the equipment at the end of the lease.


How can financing improve cash flow for a business?

By financing equipment, you can spread payments over time and keep cash on hand for critical or emergency expenses. Financed equipment can create income that exceeds the cost of the monthly payments. Let the new equipment pay for itself while earning additional income. 

Are there tax benefits to financing?

Yes, there are potential tax savings businesses can take advantage of by financing their equipment. Section 179 is a tax deduction allowing businesses to deduct the full price of their equipment in the year they purchased it. All Section 179 deductions are taken on an item by item basis, meaning businesses do not have to elect it on all qualifying equipment that was purchased and used in the 2018 tax year. So be sure to speak with your tax advisor on the great benefits of Section 179.

What are the benefits of Equipment Financing?

There are many advantages when it comes to equipment financing, here are some below:

✓ Tax savings

✓ Deferred payments on approved credit

✓ Low monthly payments

✓ Financing as low as $1000

✓ Increased cash flow

✓ Keep lines of credit open



Want some real life examples of business successes? Here are some incredible testimonials.


“I didn't have the cash to purchase the equipment. Financing made it possible for me to get my business started.” - Sonia A., Catering Industry


“Being able to finance the equipment is going to help my business have a strong cash flow for starting up.” - Marion G., Salon Industry


Tags: Startup Business, New Business, Customer Satisfaction, Equipment Finacing, Small Businesses, marketing, Marketing Tips