Equipment Loan

When purchasing new or used machinery and equipment for your business, you can either pay the full amount upfront or obtain a loan to buy the equipment and pay the loan company in monthly installments. Since the equipment itself can serve as collateral, the loan repayment term typically ranges from 2 to 7 years. For larger amounts, the SBA 7(a) loan program offers terms up to 25 years. There are various equipment financing programs available, including bank loans, SBA loans, and non-bank equipment financing options. Each lender has different terms and guidelines.

Various Busines Equipment:

  • Various machinery and equipment used for business purposes
  • Built-in machinery is not eligible
  • Labor costs are not included
  • Must be purchased from an authorized dealer/vendor
  • Examples include trucks, restaurant equipment, laundry equipment, manufacturing machinery, etc.

Various Equipment Financing Programs:

Non-Bank Equipment Financing

  • Processing Time: 1-7 days
  • Amount: $10,000 – $75,000
  • Repayment Term: 2 – 7 years
  • Monthly Payments: Principal + Interest
  • Personal Credit Score: 650 or above

Bank Equipment Program

  • Processing Time: 2-6 weeks
  • Amount: $50,000 – $1,000,000
  • Repayment Term: 2 – 7 years
  • Monthly Payments: Principal + Interest
  • Personal Credit Score: 680 or above

SBA 7(a) Equipment Loan

  • Processing Time: 1-3 months
  • Amount: $250,000 – $5,000,000
  • Repayment Term: 10 yrs, 25 yrs
  • Monthly Payments: Principal + Interest
  • Personal Credit Score: 700 or above