Equipment financing helps you acquire the machinery, vehicles, or technology your business needs without paying the full cost upfront. Because the equipment itself usually serves as collateral, it can be one of the more accessible ways to fund a major purchase.
What equipment financing is
Equipment financing is funding used specifically to buy — or sometimes lease — a piece of equipment. The equipment you’re purchasing typically acts as the collateral, which lowers the provider’s risk and can make approval more straightforward than unsecured options. It can cover machinery, vehicles, kitchen and medical equipment, computers, and more.
How it works
- You choose the equipment. A quote or invoice from the vendor sets the amount.
- The provider finances the purchase. Often up to a large share of the cost; some deals require a down payment.
- You repay over the equipment’s useful life. Terms are usually matched to how long the asset will be productive.
- The equipment secures the financing. That collateral is part of why approval can be more accessible.
Typical terms
- Amount: tied to the equipment’s price — often a large percentage of the cost.
- Term: commonly 2 to 7 years, aligned to the equipment’s expected lifespan.
- Down payment: some providers require one; others finance the full amount.
- Structure: may be a loan or a lease, depending on the provider.
These are typical ranges for illustration, not an offer.
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Check eligibility →When equipment financing makes sense
It’s usually the right tool when you need to:
- Purchase machinery, vehicles, or technology to operate or grow.
- Preserve cash and working capital instead of paying a large sum upfront.
- Spread the cost of a long-lived asset over predictable payments.
What you’ll typically need
- A quote or invoice for the equipment you want.
- Time in business and revenue history (the asset itself also supports approval).
- Recent business bank statements.
Frequently asked questions
Can I finance used equipment?
Often, yes. Many providers finance both new and used equipment, though terms can differ. The specifics depend on the provider and the asset.
Is it a loan or a lease?
It can be either. Some equipment financing is structured as a loan you own at the end; some is a lease. Which is offered depends on the provider and your preference.
Do I need a down payment?
Sometimes. Some providers finance the full cost, while others ask for a down payment. It varies by provider and the equipment.
Who owns the equipment?
With a loan structure, you typically own the equipment outright once it’s paid off. With a lease, ownership terms depend on the agreement.
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See my funding options →This page is for general educational purposes and is not financial advice. Access Funding Network is a free matching service, not a lender. Funding products, amounts, rates, and terms are offered solely by independent third-party providers and are subject to their underwriting. Amounts and terms shown are typical industry ranges for illustration only and are not an offer or guarantee. Not all applicants will qualify or be matched.