Equipment financing
Financing structured against the asset
Equipment financing is built around the asset you are acquiring. The equipment itself serves as collateral, which often makes qualification more straightforward than unsecured financing and lets the term line up with the asset's useful life. You get the machine, vehicle, or system now, and preserve your working capital for everything else.
- The amount is sized to the asset
- The equipment secures the financing
- Term matched to the asset's useful life
- Possible Section 179 tax treatment (confirm with your accountant)
Illustrative example
CS · 2026Equipment financing
$120,000
60 months · CNC mill · indicative
Example only. Not an offer of financing, a quote, or a credit decision.
What is equipment financing?
Equipment financing is a structure used to acquire business equipment, vehicles, technology, or machinery, where the asset being purchased also secures the financing. Because the lender can look to the equipment as collateral, qualification is often more accessible than unsecured options, and the repayment term is matched to how long the asset stays productive. It lets you put an asset to work immediately without paying the full price out of cash reserves.
What it gives you
Asset-aligned term
The schedule is matched to the equipment's useful life, so payments do not outlast the asset.
Preserves working capital
Acquire the asset without draining the cash you need to operate.
Collateral built in
The equipment itself secures the financing, which can ease qualification.
Potential tax benefit
Section 179 and depreciation may apply. Confirm the specifics with your accountant.
Frequently asked
Questions, answered plainly.
Why finance equipment instead of paying cash?+
The core idea is matching the cost of an asset to the income it produces. Equipment earns revenue over years, so paying its full price in one month ties up cash the business needs elsewhere. Financing spreads the cost across the period the asset is actually working for you, and the asset often pays for its own payment.
Example
A $120,000 machine financed over five years might run about $2,400 a month. If it lets you take on an extra $6,000 a month of production, the asset is generating more than its own payment from day one, while your cash stays free.
What types of equipment can be financed?+
Most productive, business-use assets qualify: machinery, commercial vehicles and trucks, medical and dental equipment, restaurant and kitchen equipment, and technology infrastructure. The rule of thumb is that if it is a durable asset your business uses to make money, it is usually financeable.
Do I need a down payment?+
Some structures finance the full asset value, others ask for a down payment, often in the range of 10 to 20 percent. A larger down payment usually lowers your rate and monthly cost, so the decision is a straightforward trade between keeping cash now and paying less over the term.
Can I finance used equipment?+
Yes, in many cases. The asset's age, condition, and expected remaining life shape the term and structure, because the lender wants the financing to be repaid while the equipment is still productive and still worth something as collateral.
Is leasing or financing better?+
Financing builds toward ownership and suits assets you will keep and run for years; leasing can make sense for assets you replace frequently or want to keep off the balance sheet. Ask yourself how long you will actually use the asset and whether owning it at the end has value. Technology that dates quickly often leans lease; a core machine you will run for a decade leans finance.
How fast can equipment financing fund?+
Because the asset secures the deal, equipment financing is one of the faster categories, often funding within a few business days once you have an equipment quote and basic documentation. The collateral does a lot of the underwriting work, which is why the process is usually lighter than an unsecured loan of the same size.
Equipment financing: fund the assets that grow the business
Equipment financing is one of the most accessible categories precisely because the asset is the collateral. Capital Selector sizes the structure against the equipment's useful life and your operating profile, so the schedule never outlives the equipment and your cash stays free for the rest of the business.
See what your business qualifies for.
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