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Equipment Financing

You can use an equipment loan to purchase anything from office furniture  to construction machinery.

What is Equipment Leasing?

With equipment leasing, instead of borrowing money to purchase the equipment outright, you are paying a fee to borrow the equipment from the leasing company who maintains ownership of the equipment while you use it.  This is a great option for businesses that exchange or upgrade equipment frequently or ones that do not have the capital to pay the down payment required for a loan.  It’s also more likely to cover additional soft costs associated with delivering and installing the equipment.

Lease arrangements can vary depending upon your company’s needs and if you want to own the equipment, some leasing companies will offer the option of purchasing the equipment at the end of your term.

What is an Equipment Loan?

An equipment loan is a loan taken out with the intended purpose of purchasing equipment.  Typically, the equipment secures the loan meaning that if you can no longer afford to pay the loan, the equipment gets repossessed as collateral.

These loans are perfect for business owners that need a piece of equipment long-term but can’t afford to make the purchase upfront as the lending institution typically agrees to deploy the majority of the capital, so that you can pay in periodic phases.  While the arrangement will ultimately cost more than if you had bought the equipment upfront, equipment loans allow you to receive the equipment you need, while leaving you with sufficient working capital.

Equipment Financing Details

ADVANTAGES

  • Allows you to buy or lease equipment you could otherwise not afford

  • Equipment is often collateralized, making it easier to qualify for 

  • More favorable loan terms and interest rates than many alternative financing options

DISADVANTAGES

  • Usage is restricted to equipment, that means you won't be able to cover other expenses with the loan

  • Buying the equipment outright will always be less expensive than financing it

Qualification Criteria

The requirements for qualifying for an equipment loan are attainable for many small business owners, including ones without perfect credit history:

 

12+ months in business

580+ personal credit score for 2+ years in business

670+ personal credit score for startups

Documentation Required

We at GRL Capital Partners want to make the funding process as efficient and simple as possible for you. Therefore, minimal documentation is needed for your application:​

Signed one page funding application

3-5 most recent months company bank statements

Invoice or quote for the equipment

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