Equipment financing encompasses all methods businesses use to acquire commercial equipment. These include equipment loans, equipment leasing, and equipment sale-leaseback. Each option varies in credit and capital requirements, structure, rates, terms, and fees.

Equipment leasing enables companies to obtain equipment immediately without upfront costs. Equipment loans grant companies full control over equipment during and after payback. Sale-leasebacks let companies sell equipment while retaining its use.

Equipment loans are debt facilities for purchasing new or used equipment, offering quick access without full upfront payment. Funding sources for equipment loans include SBA loans, bank term loans, lines of credit, alternative loans, factoring, and merchant cash advances.

Sale-leaseback allows leveraging existing equipment to obtain financing by selling it to a lender and leasing it back. This aids in cash flow management and boosts working capital.

Equipment leasing involves a lender purchasing equipment for direct lease to a business. It’s beneficial for companies lacking upfront funds, wanting to avoid equipment obsolescence, or seeking tax advantages. Lease-end options often include equipment purchase for a nominal amount.

Different lease structures cater to diverse business needs:

• Step-Up Leases feature increasing payments over time.
• Skip-Leases allow payment skipping during specific months.
• Deferred-Leases defer payments significantly.
• Master-Leases permit additional equipment additions to the agreement.