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types of loans / Secured Small Business Loans /

Equipment Loan

Getting an equipment loan can provide the boost you need to run your business.

How does an equipment loan work?

At some point in your business, you'll probably need financing for equipment. Whether it is for upgrades, improvements, or to replace various pieces of equipment to keep your business running smoothly, an equipment loan can offer working capital that can make the difference between succeeding or stuggling. Access to funds will give you the security of being prepared for any equipment purchase or update when you need it most.

A line of credit also provides businesses with flexibility and peace of mind to cover unexpected expenses that arise, with access to funding on an ongoing basis. A line of credit empowers you to face any financial stituation.

How can I use an equipment loan?

Rather than spending money from your revenues to pay for high-ticket items, equipment financing loans can be used to cover the costs associated with running your business on a day-to-day basis. From construction equipment to restaurant equipment and everything in between, equipment loans are diverse and can cover your business needs. Additional ways you can use an equipment loan include:

  • Replacing existing equipment and machinery
  • Repairing equipment that has been damaged
  • Purchasing new equipment
Benefits of Equipment Loan Financing
  • Easy Financing Options & Quick Approval – Applying through an online lender typically has a faster application process than traditional bank lending. A quicker application process and approval as it is less risk for the lender because equipment has the collateral built right in.
  • Preserves Working Capital & Cash Flow – Typically, with a low or even no down-payment, you can use your working capital for other needs.
  • Increased Revenue & Net Value – Preserves your cash assets and increases net value and revenue.
  • Tax Benefits – Operating expenses can typically be used as a tax deduction. Monthly payments for equipment loans may qualify as a tax deduction.
  • Flexible Payment Options – Many equipment financing loans offer monthly payments, quarterly, bi-annual and annual repayment terms – work with your lender to determine what is best for your business needs.
  • Long-term Business Investment – Purchasing equipment with a loan instead of leasing equipment helps you invest back into your business long-term because you own the equipment.
How can I get an equipment loan?

When trying to get a loan through financing companies, a bank or credit union, you may find the time it takes to apply for the loan, the application process and the wait for a credit approval challenging while you try to meet your short-term needs. Most small business owners need working capital on the spot to purchase, repair or update equipment.

One way to speed up the process is to consider applying for an equipment financing loan with an online lender like Kabbage Funding™. Kabbage Funding looks at real-time business data to provide you with a credit approval for your equipment loan on the spot. That means you can have the additional working capital and funding you need faster, so you can purchase or replace the equipment you need.

Ready to get started?