Financing equipment purchases can be difficult for small business owners, but these are necessary expenses in order to stay competitive and meet demand.
Capital-intensive industries like manufacturing, consumer products and restaurants often require significant equipment investments when starting and growing a small business.
There are a variety of financing options for equipment loans, including both commercial and Small Business Administration (SBA) lending options to fit nearly every business equipment need.
Traditional banks may be an option, but some have strict credit standards. If you need to purchase equipment quickly, or if your finances could be better, there are small business equipment lenders that can help.
Keep in mind that the size of your loan should match the price of the specific equipment you’re buying, while the loan term should be for the period you expect to use the new equipment before its obsolescence and/or replacement. This will ensure that you won’t still be paying for equipment after you stop using it.
You can use your small business loan to purchase a variety of durable machines and tools for your business. A few equipment purchases that may apply to your business include:
Connect2Capital can help match you with an SBA lender that makes SBA small business loans to purchase equipment.
Small business equipment financing can get your business up to 100 percent of the cost of new or used equipment. You should compare equipment loan options and find the best way for your business to finance the purchase.
Conventional business loans can be used to finance equipment purchases. Depending on your financial standing and credit, banks and other traditional lenders can help your business finance $250,000 or more in equipment expenses.
An SBA 7(a) small business loan may be another good fit for your equipment financing. SBA 7(a) loans are government-guaranteed small business loans with flexible repayment terms that are available from a wide range of borrowers. SBA 7(a) loans can provide up to $5 million in financing for equipment over a ten-year term.
If your equipment financing needs are less than $50,000, then an SBA Microloan could be a fit. These loans can be used for machinery, with a maximum repayment term of six years.
With small business financing for equipment, your business can be positioned ahead of competitors and stay poised for rapid growth. On Connect2Capital, you can know in five minutes if you are eligible for small business financing through one of our lending partners.