Equipment Financing · Complete Guide
Equipment Financing: The Complete Guide
Finance up to 100% of trucks, machinery, and technology — with the equipment itself serving as collateral for fast, low-rate approval.
Equipment financing turns an essential capital purchase into a predictable monthly payment — and because the asset secures the loan, approval is faster and rates are lower than unsecured alternatives. Indymae helps Florida and Georgia owners finance trucks, machinery, technology, and specialized equipment on terms that protect cash flow.
What Is Equipment Financing?
Equipment financing is a loan or lease used specifically to acquire a physical business asset — a truck, a CNC machine, restaurant equipment, medical devices, construction gear, or IT hardware. The equipment itself acts as collateral for the financing, which lowers the lender's risk and typically enables approval with a smaller (or zero) down payment and lower rates than an unsecured loan.
Most facilities advance 80%–100% of the equipment's cost, so you preserve working capital for operations while spreading the purchase over the asset's useful life.
How Equipment Financing Works
You select the equipment and negotiate price as you normally would. The lender pays the vendor directly, and you take delivery. You then repay the lender in fixed monthly payments over a term — typically 2 to 7 years — matched roughly to the equipment's expected useful life.
At the end of a loan, you own the asset outright. At the end of a lease you may return it, buy it at fair market value, or (on a $1 buyout lease) purchase it for a nominal amount. Because the asset secures the obligation, the approval process focuses less on your overall credit and more on equipment value, your time in business, and steady cash flow.
Equipment Loan vs. Equipment Lease
A loan means you own the equipment from day one — you depreciate it, claim interest, and build equity. A lease means the lender owns it during the term and you decide whether to buy at the end.
Loans usually cost less in total interest and produce lower monthly payments over a longer term. Leases are easier to qualify for, can include the soft costs (installation, training, delivery), and offer flexible end-of-term options. The right choice depends on how long you'll keep the asset, your tax strategy, and the strength of your file.
What Can Be Financed?
Nearly any business-use equipment with a serial number and resale value qualifies:
- Commercial trucks, box trucks, and delivery vehicles
- Construction and heavy machinery (excavators, loaders, lifts)
- CNC, manufacturing, and metalworking machinery
- Restaurant and food-service equipment (ovens, refrigeration)
- Medical, dental, and veterinary equipment
- IT hardware, servers, and point-of-sale systems
- Office furniture and fixtures
Most facilities also finance the soft costs of installation, training, and delivery bundled into the same payment.
Rates, Terms, and Down Payment
Equipment financing rates start low because the asset secures the loan. Newer businesses or riskier asset classes pay more; strong files financing depreciating-gradually assets (think construction equipment or vehicles) can secure the best terms. The table reflects typical ranges.
Who Qualifies?
Because the equipment is collateral, eligibility is more lenient than an unsecured loan but tighter on equipment value:
- 6+ months in business (newer businesses can still qualify on some assets)
- Personal credit score 620+
- Equipment must be business-use and have resale value
- Demonstrate cash flow to cover the monthly payment
Down payment ranges from 0% to 20% depending on credit, asset type, and age. New equipment from a recognized dealer almost always qualifies for the lowest down.
The Section 179 Tax Deduction
Section 179 of the IRS tax code lets many businesses deduct the full purchase price of qualifying equipment in the year it is placed in service — up to the annual limit (over $1.2 million for 2025) — instead of depreciating it over years.
That means equipment purchased and financed before year-end can often be fully expensed now, lowering your current-year tax bill while the financing spreads the cash outlay. A financed purchase still qualifies for Section 179 — the deduction follows the purchase, not the payment. Always confirm with your CPA, but for most profitable small businesses, Section 199/179 combined with financing is a powerful combination.
How to Apply
Equipment financing applications are straightforward: an equipment quote or invoice, six months of business bank statements, and a short application. We size the term to the asset's life, match you to a lender that specializes in your equipment type, and submit.
Many files fund the same week. We also coordinate with your vendor so delivery and funding align — you don't pay out of pocket and wait.
| Credit Profile | Down Payment | Term | Est. APR | Typical Use |
|---|---|---|---|---|
| Excellent (700+) | 0% – 10% | 2–7 yrs | ~6% – 9% | New equipment |
| Good (650–699) | 10% – 15% | 2–5 yrs | ~8% – 14% | New or used |
| Fair (600–649) | 15% – 20% | 2–4 yrs | ~12% – 20% | Used, established |
| Newer Business | 10% – 20% | 2–4 yrs | ~10% – 18% | Used equipment |
Eligibility at a Glance
Explore Further
Equipment & Asset Financing Guides
Deeper reads on structuring equipment loans, leases, and tax strategy.
Frequently Asked
Your Questions Answered
Yes, for strong-credit borrowers financing new, in-demand equipment (vehicles, construction gear) many lenders advance 100% including soft costs. Weaker files may require 10%–20% down.
Yes. Most lenders finance used equipment up to roughly 7–10 years old depending on type. Older assets may require a larger down payment or a shorter term to protect against depreciation.
Yes. Section 179 follows the purchase, not the payment, so financed qualifying equipment can be fully expensed in year one while the loan is repaid over years. Confirm eligibility and limits with your CPA.
Loans cost less in total and build equity; leases are easier to qualify for, can bundle soft costs, and offer flexible end-of-term options. Keep the asset long-term → loan. Upgrade frequently → lease.
Many files fund within 3–7 business days once we have the equipment quote and bank statements. We coordinate with your vendor so payment and delivery align.
You own (or are responsible for) the equipment, so maintenance is yours — and most lenders offer bundled maintenance or warranty options. The financing payments continue regardless of equipment downtime.
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