Equipment Financing

With an equipment loan, you borrow to buy the asset and own it once the loan is repaid; the equipment secures the loan. With an equipment lease, you use the equipment for a set term and may have the option to purchase it at the end. The financed equipment—vehicles, machinery, computers, ovens—usually serves as the collateral.

1. Submit an application through ASBCLF describing the equipment you need and your business.
2. ASBCLF matches your application with lenders offering equipment financing.
3. The lender reviews the equipment value, your business cash flow, and credit profile.
4. If approved, the equipment is purchased or leased, and you repay the lender over the agreed term.

• Commercial trucks and vehicles
• Manufacturing and fabrication machinery
• Restaurant and kitchen equipment
• Construction and contractor equipment
• Technology and point-of-sale systems
• Medical and dental equipment

• Value and condition of the equipment being financed
• Business revenue and cash flow
• Time in business
• Personal credit of the owner(s)

Eligibility varies by lender and program. ASBCLF submits your application to its lender network; individual lenders set their own criteria and make their own decisions.

• Equipment quote or purchase invoice
• Business financial statements
• Business bank statements
• Business and personal tax returns
• Business licenses and formation documents

Repayments are typically fixed monthly over the useful life of the equipment, commonly two to seven years depending on the asset. Because the equipment secures the loan, down-payment requirements may be lower than those of unsecured financing.

Equipment financing is tailored to acquiring assets. See how it compares to other business financing.