Home >> Financing >> Equipment Financing

Equipment Financing

Equipment financing is a multi-billion dollar per year industry. This type of financing helps the company that uses the equipment defray up-front costs, yet still allows full use of the equipment.

With the extra cash in hand, plus the business equipment to improve operations, businesses can pursue projects or build-outs that might not otherwise be possible without the use of equipment financing.

In contrast to some other financing programs, equipment financing programs frequently require the business to only use the proceeds for a specific purpose - the equipment purchase.

If business owners want more general purpose funds for working capital or for nearly any purpose, other programs may be more suitable.

Financing of equipment typically requires that the equipment is not customized specifically for the business. The equipment is expected to have significant resale value. This is a limitation of equipment financing that is reasonable for most circumstances, yet sometimes results in a business looking toward other financing alternatives.

Examples of equipment that is typically involved includes construction equipment and restaurant equipment.