Equipment Financing

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Old equipment can gum up operations

Get the tools you need to get the job done

Shoddy or insufficient equipment can mean wasted time, added expense and lost opportunity. Whether you’re upgrading to stay ahead of the competition or replacing outdated tools, tech, machinery or vehicles, equipment financing may provide an answer to your operational challenges.

Your equipment financing options include lease deals and loans. To determine which option is right for your business, you’ll need to consider the depreciation rate, potential maintenance costs, and turnover requirements associated with your equipment.

For instance, if the value of your equipment depreciates rapidly and requires frequent upgrading, an equipment lease is likely the right choice for you. However, if you’re looking to acquire equipment that holds its value and will be used for a relatively long period of time, you may want to opt for an equipment loan.

Of course, both loans and leases have their advantages and disadvantages. Whereas a lease is easier to obtain but typically more costly, a loan allows you to purchase the equipment and use it to secure your funding. Both options also have a variety of potential credit and tax benefits.

Review our list of pros and cons below to help you carefully evaluate your financing needs.

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Equipment Financing Pros & Cons



  • Easier approval process
  • Finance up to 100% value
  • Leases are off balance sheet
  • Helps conserve cash
  • Possible tax deduction
  • Lower monthly payments
  • Lease payments can be expensed
  • Keeps equipment/technology current
  • If purchased, you can make alterations or repairs as needed
  • If purchased, option to sell equipment to recover cost
  • Tax incentives under Section 179 of the IRS Tax Code for larger purchases that qualify
  • Potential depreciation deduction for the equipment purchased
  • With purchase, you are not limited to the leasing company‚Äôs brands


  • Higher cost to finance, than a typical loan
  • No equity in the equipment
  • Longer lease than needed
  • Issues with brand availability
  • Reliant on leasing company for equipment upkeep
  • You will have a higher initial finance cost.
  • Difficult to get loan approval for higher amounts.
  • Technology and equipment get outdated quickly.
  • You are responsible for all maintenance costs.

General Loan Information

Max Loan Amount

  • Up to $500,000

Loan Terms & Rates

  • Terms 1 to 5 years
  • Monthly Payments
  • Rate 5.9% to 29.99%

Credit Requirements

  • FICO Credit Score 600+

Other Criteria

  • Average Business History

* If you meet these general loan guidelines, you will most likely receive loan offers for this funding product. Loan offers are preliminary based on the information evaluated, final funding amount offer may be adjusted during final underwriting.

Let Fimerica help you Borrow with Confidence!

Not sure equipment financing is the funding solution for your business? No problem! Fimerica makes it easy to view and compare all of the business loans and financing products for which you qualify. Get your real-time loan offers in 5 minutes or less.