Ready to Upgrade? Get the Equipment Financing You Need!

Definition of Equipment Financing

Asset based financing provides an opportunity to obtain various types of assets, such as machinery, vehicles, and technology, with funding options tailored to your financial situation. This allows you to retain liquidity while enhancing your business operations and offers tax incentives.

Importance for Businesses

Besides ensuring you have the necessary tools to run efficiently, asset based financing helps you preserve capital. By leveraging financing options, you can invest in upgrades without depleting your working capital, which is necessary for day-to-day operations.

This strategy not only allows you to address unexpected equipment needs but can also improve your overall efficiency. With access to up to $5,000,000 in funding through AMP Advance, you can secure the asset based funding you need promptly, ensuring minimal disruption to your operations

Key Differences Between Financing and Leasing

Business equipment financing involves purchasing assets through a loan, which you will own outright after the payment period, whereas leasing allows you to use the collateral for a set term without ownership. Understanding these options is crucial when deciding the best path for your needs.

Consequently, financing might be ideal if you want to own the assets long-term and benefit from its full value over time. In contrast, leasing can be beneficial for short-term use or when you regularly upgrade assets, providing flexibility without the commitment of ownership. Evaluating these differences will empower you to make informed decisions that align with your goals. Is equipment leasing vs financing better for you? Read more on equipment leasing in our blog.

Use our Equipment Loan & Lease Calculator to estimate payments, compare financing options, and find the best terms for your business equipment needs.

Types of Business Equipment Loans

You have various options when it comes to financing equipment. Understanding these types can help you choose the best solution for your needs. Here are some common types of equipment financing:

• Equipment Loans
• Equipment Leases
• Lines of Credit
• Sale and Leaseback
• Merchant Cash Advance
• SBA Equipment Financing

The right choice will depend on your specific financial situation and asset requirements.

Equipment Loans

Behind equipment loans lies the ability to finance new or pre-owned machinery. These loans allow you to own the asset outright once paid off, offering you long-term value. With flexible loan amounts, you can secure funding up to $5,000,000, ensuring your business never lacks the crucial tools it needs.

💡 Pro Tip: Did you know many equipment purchases may qualify for a tax write‑off under section 179 vehicle tax write off? Leveraging this deduction can significantly reduce your taxable income while you build your fleet or upgrade your machinery.

Equipment Leases

There are many benefits with leasing, which provide you with the opportunity to use the asset without the full upfront cost. Leasing typically requires lower initial payments and allows you to upgrade when new technology becomes available. This can be particularly valuable as your business needs evolve.

Considering leasing means you can easily adapt to changes in your industry. You retain access to the latest technology while conserving your capital for other important aspects of your business. With flexible terms, leases enable efficient cash flow management while still acquiring the equipment you need.

Lines of Credit

Business lines of credit can offer you the flexibility to finance asset purchases at your convenience. With the ability to withdraw funds up to an approved limit, you can manage expenses effectively without being locked into a specific loan repayment schedule.

For instance, lines of credit allow you to only pay interest on the funds you use, making them an economical choice for anyone that experiences fluctuating equipment requirements. This financing option provides a safety net, enabling you to address your equipment needs promptly while keeping your finances balanced.

Want flexible access to capital? A Business Line of Credit might suit fluctuating equipment needs

Sale and Leaseback

Turn assets into collateral for working capital without losing access to it. A sale and leaseback lets business owners sell assets for immediate cash while leasing them back to maintain operations.

Get fast funding, improve cash flow, and keep your operation running smoothly.

Merchant Cash Advance

A Merchant Cash Advance (MCA) allows your business to leverage future revenue to quickly access capital—making it an ideal solution when you need to purchase equipment fast. Unlike traditional loans, MCAs offer flexible repayment based on your daily sales, which is especially helpful for businesses with fluctuating income. They’re also accessible to those with less-than-perfect credit, making them one of the fastest and most reliable ways to secure funding when time and approval speed matter most.

Learn more about how a merchant cash advance can help you purchase equipment without delay.

SBA Equipment Financing

SBA 7(a) loans offer small businesses low-interest, long-term financing ideal for purchasing equipment like machinery, vehicles, and office technology. Backed by the U.S. Small Business Administration, these loans provide flexible repayment terms—often up to 25 years—making them a smart choice for managing cash flow while investing in essential assets. an