Equipment Financing
What is Equipment Financing?
Equipment financing provides businesses with the capital needed to purchase or lease equipment without requiring a large upfront investment. These loans or leases help businesses acquire machinery, vehicles, technology, and other essential assets while preserving cash flow.
Whether you’re a small business owner, contractor, manufacturer, healthcare provider, or fleet operator, equipment financing allows you to upgrade or expand your operations with flexible payment terms and competitive rates.
The Benefits of Equipment Financing
Equipment loans and leases offer affordable payments, tax advantages, and flexible terms to help businesses invest in new or used equipment without tying up working capital.
Collateralized Loan
Uses the equipment being financed as collateral, reducing the lender's risk and allowing for more favorable loan terms such as lower interest rates and extended repayment periods.
Fast and Streamlined Approval Process
Offers a streamlined approval process due to lenders' familiarity with equipment values and industry requirements, allowing businesses to swiftly acquire equipment and minimize operational disruptions.
Higher Approval Rates
Have higher approval rates as the equipment acts as collateral, enabling lenders to provide loans to businesses with limited credit profiles or startups, making it a viable option for such entities.
Equipment-Specific Financing
Tailored for equipment acquisition, enabling lenders to consider the equipment's value, depreciation, and expected lifespan to provide loan terms that align with its useful life, ensuring businesses have suitable loan amounts and repayment structures based on projected revenue.
Easy Access to Equipment
Enables businesses to obtain necessary equipment without a significant upfront payment, providing quick access to high-quality equipment that enhances operations and maintains competitiveness in the industry.
Preserves Working Capital
Allows businesses to preserve working capital for other essential areas by avoiding substantial upfront equipment payments, enabling them to allocate funds to inventory management, marketing, hiring, and make manageable monthly payments instead.
Tax Advantages
Provides businesses with flexible payment options, such as variable interest rates, fixed monthly payments, or customized repayment schedules, allowing them to align loan payments with revenue streams and minimize cash flow impact.
Flexible Payment Options
Provides tax benefits to businesses, including tax-deductible interest payments, potential accelerated depreciation, and other tax incentives associated with equipment acquisition, resulting in a reduced overall tax burden and improved financial position.
Types of Equipment Financing
1. Equipment Loans
Equipment loans allow businesses to purchase equipment with fixed monthly payments over a set term. Once paid off, the business owns the equipment outright.
2. Equipment Leasing
Leasing allows businesses to use equipment without owning it, typically with lower monthly payments and options to upgrade or buy at lease-end.
3. Sale-Leaseback Financing
A business sells its existing equipment to a lender and then leases it back, providing immediate cash flow while retaining use of the equipment.
4. SBA 7(a) & 504 Equipment Loans
The SBA 7(a) and 504 loan programs offer low-interest, long-term financing for equipment purchases.
5. Vendor Financing
Many equipment manufacturers and suppliers offer direct financing options, making it easy to bundle equipment and financing into a single transaction
Power Your Business with Equipment Financing
Secure the capital you need to acquire, upgrade, or lease essential equipment with competitive rates, flexible terms, and customized financing solutions. Whether you’re purchasing heavy machinery, medical technology, or fleet vehicles, our team at KEYZ Capital will guide you through every step of the process.
🔹 Fast Prequalification 🔹 Expert Loan Guidance 🔹 Top Lender Network
FAQs
In this section, you will find concise answers to common questions regarding equipment financing loans.
Equipment financing can be used for a variety of purposes, including:
- Purchasing or leasing new or used equipment
- Upgrading outdated machinery
- Expanding production capacity
- Financing commercial vehicles and fleet equipment
- Covering installation, training, and maintenance costs
- Equipment Loans – Up to 100% of the equipment cost
- Leases – Typically cover 80% – 100% of the equipment value
- SBA 7(a) & 504 Loans – Up to $5 million for equipment
Rates vary by lender and loan type:
- Equipment Loans – 5% – 12%
- Leases – 3% – 10%
- SBA Equipment Loans – 4% – 7%
- Equipment Loans – 2 to 10 years
- Leases – 12 months to 7 years
- SBA Loans – Up to 25 years for large equipment
Most equipment loans and leases use the equipment itself as collateral, meaning additional assets are not typically required.
- A credit score of 600+ (higher for better rates)
- At least 1 year in business (startups may need a larger down payment)
- Equipment must retain value and be necessary for business operations
Loan processing times vary:
- Equipment Loans & Leases – 1 to 5 days
- SBA Equipment Loans – 30 to 90 days
- Yes! Many lenders finance both new and used equipment, though terms may vary.
Yes! Many businesses use sale-leaseback financing to convert equipment equity into cash for operations.
At KEYZ Capital, we provide flexible loan and lease options, ensuring you get the best rates, terms, and financing structure for your business.
Why Work with KEYZ Capital?
At KEYZ Capital, we specialize in securing equipment financing for businesses across various industries. Our team has extensive experience navigating the financing process, ensuring you get the best terms with minimal hassle.
1
Fast Prequalification & Expert Guidance
We simplify the financing process to help you secure funding quickly.
2
Access to Top Equipment Lenders
We connect you with a network of trusted lenders offering competitive terms.
3
Tailored Solutions
We structure financing to fit your unique business needs and long-term goals.
Loan Types & Products
Business Acquisition
Acquiring a competitor? Buying our a partner? Scaling your empire? We can help.
Working Capital
The quickest way to kill a business is to run out of cash. Let’s talk working capital to keep you alive and thrive.
Equipment Financing
Need any type of business equipment or machinery to operate your business. We can likely help finance it.