Equipment financing is the use of a loan or lease to purchase or borrow hard assets for your business. Equipment financing refers to a loan used to purchase business-related equipment, such as a restaurant oven, a vehicle, a new operating system, or even a copier scanner. Equipment loans provide for periodic payments that include interest and principal over a fixed term.
For many businesses, equipment is the vital component driving their revenue. Equipment could be part of the actual service that your customers use or the source of how your product or service is created. It’s necessary to have the equipment that produces quality expectations, which requires regular replacements, repairs, and upgrades to newer models. These are often very expensive, maybe even the biggest expenses for businesses who are dependent on equipment.