OVERVIEW
Equipment Financing
Minimum
Loan Amount:
$10,000 +
Minimum
Credit Score:
650+
Repayment
Options:
12-72 Months
Payment
Frequency:
Monthly
ALL ABOUT EQUIPMENT FINANCING
What Is Equipment Financing?
Equipment financing allows businesses to get new or pre-owned business equipment via a loan or a lease. Business equipment can be expensive, which can ultimately become a pain point for small business owner to purchase. Equipment financing allows businesses to purchase equipment with flexible payments over time with intention to own at the end of the last payment.
While equipment leasing allows businesses to obtain equipment by way of regular lease payments without the intention to own at the end of the lease term. These two options help propel businesses forward without affecting the cash flow. Equipment financing works by providing businesses with financing for up to 100% of the equipment's value with term lengths dependent on the expected life of the equipment. Fixed payments are broken down on a weekly or monthly basis. Payments include a pre-determined principal and interest over the lapse of the loan or lease term.
Equipment Financing Topics:
Businesses can finance almost any type of equipment and heavy machinery needed to run their day-to-day operations smoothly and be competitive in their trade.
These type of financing allows the business owner to purchase equipment without a downpayment, as the equipment in itself serves as collateral for the loan. This means that a lender can seize the piece of equipment of business owner fails to repay the loan. Lenders may require a personal guarantee, or may place a lien on the asset in case of default.
Businesses can use equipment financing to purchase any type of equipment needed for their business. Businesses commonly use these types of small business loans to purchase the following, but are not limited to:
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Heavy Construction Equipment
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POS Systems & Softwares
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Restaurant Equipment
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Office Furniture & Supplies
THE STEER PROMISE
Helping Small Businesses Grow Across The U.S.
At Steer Financial, we understand that no two businesses are alike. We offer financing solutions as unique as the business owners we help. Together, we can help steer your business to its full potential. Step one is determining which type of financing is ideal for your business. We work hard to deliver honest, reliable, and transparent customer service so you can feel confidence choosing us to help you meet your business capital needs.
Serving All 50 States
By leveraging our network of 45+ partner lenders, we can offer tailored solutions to businesses across the U.S. regardless of their size or industry.
Secure + Safe Data
We strive to keep all of your information secure and private. We assign a funding specialist to guide you along the entire process.
10+ Years of Experience
Our expertise has enabled us to understand small businesses and offer the highest level of service to you and your business.
HOW IT WORKS
How Does Equipment Financing Work?
Equipment finance is a sort of financing that allows small businesses to obtain the equipment they need to operate and perform their day to day services without having to pay the entire cost up front. Steer Financial will assign a funding specialist to your business to help complete our easy application and gather all the necessary documents upfront. We then asses your business and work together with our partner lenders to determine the best fit. The lender then will assess and underwrite your busienss' creditworthiness by reviewing variables such as credit history, financial statements, and other relevant data.
Equipment Financing Alternatives
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Working Capital Loan
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SBA Loan
Once the application is approved, you Steer Financial funding specialist will provide you with a decision stating the financing or leasing terms, interest rate, payback timeline, and any other financing costs. Once the financing arrangements are finalized, you may either buy the equipment outright or lease it from the leasing company. In the event of a lease, you may be able to purchase the equipment at the conclusion of the lease period.
You are responsible for repaying the loan or lease payments in accordance with the conditions of the financing arrangement. Depending on the financing arrangements, the equipment may act as collateral for the loan or lease.
Overall, equipment financing may be a valuable approach for your small business to purchase the equipment you may need to function without tying up a large amount of cash up front. The financing conditions will be determined by the business's creditworthiness and the specific equipment being purchased.
THE ADVANTAGES
What Are the Benefits of Equipment Financing?
Equipment financing is a type of financing that allows a small business to purchase new or used equipment without paying the entire price upfront. Here are some additional benefits of equipment financing:
Access to new equipment
Equipment financing enables businesses to acquire new or used equipment without having to pay the full cost upfront, which can be particularly helpful for businesses with limited capital.
Preservation of capital
By spreading out the cost of equipment over time, businesses can preserve their capital for other expenses, such as payroll, inventory, or marketing.
Deduction 179 and tax benefits
In many cases, businesses can deduct the interest paid on equipment financing from their taxes, which can result in significant tax savings. Ask your accountant for additional information regarding IRS tax savings.
Flexibility
Equipment financing can be structured to meet the needs of the business, including flexible repayment terms and the ability to upgrade equipment as needed. This can help businesses stay competitive and adapt to changing market conditions.
WHO SHOULD APPLY
Who Should Get Equipment Financing?
Equipment finance may be beneficial to a wide range of small businesses, from startups to bigger established businesses. Below you will find some circumstances when equipment financing may be especially useful:
Limited or bad business credit
Equipment financing may be a beneficial tool for small businesses with little cash to acquire the essential equipment without locking up a considerable amount of funds upfront. This is especially critical for businesses with bad or limited credit or those who do not have easy access to traditional finance.
Business expansion
Equipment financing may assist small businesses wishing to expand their operations or boost production capacity by purchasing additional equipment. This is usually beneficial for businesses within high-capital-cost industries like manufacturing or construction.
Updating or upgrading equipment
For small businesses that rely significantly on technology, equipment financing can assist in the purchase of new and upgraded technology, such as computer systems, software, or other digital tools. This can help your business in remaining competitive and adapting to changing market conditions.
Seasonal businesses
Equipment financing may be a valuable tool for controlling expenditures during slower periods for businesses that encounter seasonal swings in sales or cash flow. Businesses may better manage their cash flow and avoid tapping into savings or lines of credit by spreading out the expense of equipment over time.
LOAN USES
What Can Equipment Financing Be Used For?
Equipment financing can be used for a wide range of equipment purchases, from large industrial machinery to small office equipment. Here are some examples of equipment that can be financed or leased:
Manufacturing equipment
Equipment financing can be used to purchase manufacturing equipment such as CNC machines, conveyor belts, and heavy machinery.
Seasonal and year round landscaping businesses can also benefit from financing or leasing equipment such as lawnmowers, tree branch choppers, or hauling trailers.
Vehicles or over the road trucks
Businesses can use equipment financing to purchase vehicles for commercial use, such as trucks or vans for deliveries or a fleet of company cars.
Office equipment
Equipment financing can be used to purchase office equipment such as computers, printers, copiers, and furniture.
Equipment financing or leasing can be used to purchase fitness equipment such as treadmills, weight racks, and other gym fitness equipment needed.
Medical equipment
Equipment financing can be used to purchase medical equipment such as x-ray machines, ultrasound machines, and other medical technology.
Construction equipment
Equipment financing can be used to purchase construction equipment such as bulldozers, cranes, and excavators.
MINIMUM REQUIREMENTS
How To Qualify and Get Equipment Financing
At Steer Financial, we will work closely with formulating a plan for your business. We will assess your business with our partnered lenders to evaluate the strengths and assets your business has to decide on the loan's size and conditions. Strong financial statements and a high credit score might also increase your chances of being approved. To make sure equipment financing is a realistic choice for your business, our funding specialist will walk you through the entire process from start to finish. Below is a quick overview of the minimum requirements in order to get an approval:
Time In Business
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Startups or Existing Businesses.
Monthly Revenue
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No monthly revenue is required.
Personal Credit
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Minimum of 650+ personal credit score.
Financial History
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No open bankruptcies for over 1 year.
HOW TO APPLY
Three Easy Steps to Secure Equipment Financing
Same-Day
Decisions
We have partnered with over 45+ lenders to ensure that we match your business with the best lender and the most competitive rates. We work quickly to provide an approval in as soon as a few hours.
Fast
Funding
By utilizing our streamlined fast funding approach, your business can access the necessary capital in as little as 24 hours from the moment you approve the terms, ensuring a timely and efficient process.
