Equipment Financing
Specialized financing solutions for purchasing or leasing equipment with flexible terms and competitive rates to help your business grow.
Key Details
Interest Rates
Rates vary widely based on equipment type, credit profile, and term length
Repayment Terms
Term typically aligned with the useful life of the equipment
Quick Approval
For qualified applicants
Eligibility Criteria
- Minimum 1 year in business
- Credit score of 600+ for business owners
- Equipment must be essential to business operations
- Equipment must have a determinable useful life
- Down payment of 10-20% (may vary by equipment type)
- No recent bankruptcies or tax liens
- Positive business cash flow
Important Note
Meeting the eligibility criteria does not guarantee loan approval. Each application is evaluated on a case-by-case basis, considering multiple factors including credit history, business performance, and market conditions.
Associated Fees
| Fee Type | Description |
|---|---|
| Origination Fee | 1% to 3% of the financed amount |
| Documentation Fee | $100 - $500 |
| UCC Filing Fee | $50 - $100 for securing the lender's interest in the equipment |
| Late Payment Fee | Typically 5% of the payment amount or $50, whichever is greater |
| Early Payoff Fee | May apply for some financing agreements, typically declining over the term |
Additional fees may apply based on specific circumstances. Please consult with your Fargin Capital advisor for a complete breakdown of all potential costs associated with your loan.
Key Benefits
100% financing available for qualified borrowers (including soft costs)
Equipment serves as collateral, potentially eliminating need for additional collateral
Potential tax benefits through Section 179 deduction (consult your tax advisor)
Fixed monthly payments for easier budgeting
Preserve working capital and existing credit lines
Quick approval process, often within 24-48 hours
Both new and used equipment eligible for financing
Flexible end-of-term options: purchase, return, or upgrade
Frequently Asked Questions
What's the difference between equipment loans and equipment leases?
Equipment loans provide financing to purchase equipment that you'll own at the end of the term. Equipment leases allow you to use the equipment for a set period, with options to purchase, return, or upgrade at the end of the lease. Loans typically require a down payment but offer lower overall costs, while leases often require little or no money down but may cost more over time.
What types of equipment can I finance?
We finance virtually all types of business equipment including manufacturing machinery, construction equipment, medical devices, restaurant equipment, vehicles, technology/IT infrastructure, office furniture, agricultural equipment, and more. The equipment should be essential to your business operations and have a determinable useful life.
How quickly can I get approved and funded?
For equipment financing up to $250,000, approval decisions can be made within 24-48 hours with minimal documentation. Funding typically occurs within 3-5 business days after approval and receipt of all required documentation. Larger or more complex equipment financing may take 1-2 weeks for full approval and funding.
Can I finance used equipment?
Yes, we provide financing for both new and used equipment. For used equipment, we typically require an appraisal or valuation to confirm the equipment's value and remaining useful life. The equipment's age, condition, and expected lifespan will impact the loan terms and interest rate offered.
Are there tax benefits to equipment financing?
Yes, equipment financing may offer tax advantages. With equipment loans, you may be able to deduct the interest paid and depreciate the equipment over time. Section 179 of the IRS tax code may allow you to deduct the full purchase price of qualifying equipment in the year it's placed in service. With leases, payments may be fully tax-deductible as operating expenses. Always consult your tax advisor for guidance specific to your situation.
Ready to Get Started?
Our team of experienced loan advisors is ready to help you secure the financing you need for your business.