Small Business Equipment Loans 

What is Small Business Equipment Loans/ Financing ? 

Equipment financing is a simple way for small businesses to get the gear they need without paying for everything upfront. Instead of wiping out your cash, you make fixed monthly payments over a set period until it’s paid off. 

It’s a great option if you want to upgrade right away, whether you need a delivery van, medical equipment, a new oven, or manufacturing tools. While still keeping enough cash on hand for things like payroll, inventory, and everyday expenses. 

How Does Equipment Financing Work? 

Equipment loans typically come with a set interest rate, repayment term, and in some cases, a small down payment to put up. Terms can range from 12 months to 7 years, which depends on the lender and the type of equipment you need. 

There are two main types: 

• Secured loans: In this, the lender uses the purchased equipment as collateral, lowering their risk and often allowing them to give you lower interest rates and easier approval, especially if you’ve got a limited credit history. 

• Unsecured loans: Your credit strength and business performance are generally accounted for approval. These don’t need collateral, but higher interest is the catch since the lender takes on more risk. 

Ownership works differently between a loan and a lease.  
With an Equipment Loan, you make payments, and you get to own it, the gear is entirely yours once the final installment is complete. 

On the other hand, you’re basically renting when you Lease. Making payments to use the equipment for a specific time, but without actually owning it. 

Benefits of Equipment Financing 

• Preserve cash flow: Instead of blowing up cash to get expensive equipment, you get to keep your working capital free for payroll, inventory, and growth initiatives. 
   

• Improve productivity: By financing, you can stay competitive by accessing new tech or specialized machines that help your team work faster and produce more. 
   

• Build business credit: Literally opens doors for better financial terms in future as making consistent, on-time loan payments builds your business credit. 

• Potential tax advantages: In many cases, you might get to write off equipment costs under Section 179, reduce taxes, and boost savings. 

Cover Equipment Financing Costs with SBAC Funding 

With SBAC Funding, you don’t need to drain working capital or stall to keep your operations running. We help local small businesses get equipment financing for their needs. 

Without unnecessary delays or missing opportunities, get quick access to funds as your application gets approved within days. 

We’ve got personalized loan solutions with terms, repayment schedules, and structures that align with your specific goals, budget, and industry, giving you a funding plan that works in the real world. 

A Faster, Easier Way to Get Funding for Your Equipment 

The SBAC Funding application process is designed to be simple and efficient. You provide your basic financial information and how much you need for the equipment, then we simply review your request to match the right funding terms for your business. 

Timeframe for approvals and funding 

• Decisions are typically made within 2–5 business days. 

• Funds can be released shortly after approval. 

• Faster turnaround is possible with organized documents and clear quotes. 

From the moment you apply to the day your equipment is delivered, the SBAC Funding team is here to guide you. Got questions on loan terms? We ensure the process stays transparent. 

Minimum Requirements for Equipment Financing 

Equipment loans always differ depending on the lender:  

Business age and revenue: Most lenders require the business to be 6 to 12 months old and to have generated a minimum revenue.  

Credit scores: An good business or personal credit score, depending on the lender, will enable you to improve your chances of getting approval.  

Invoices for equipment: Quotes from suppliers, as they want to know exactly what it is you’re purchasing. 

Finding the Right Equipment Loan for Your Business 

Your financing needs depend on your industry and the type of gear you’re buying: 

• Construction: Finance excavators, loaders, and scaffolding to handle projects without draining cash. 
   

• Medical: Fund imaging machines and diagnostic tools to enhance care affordably. 
   

• Food services: Finance ovens and refrigeration units to expand the list of menu options and foster efficiency. 

Weigh cost against longevity and performance to decide between new or used equipment, and get funds from lenders who understand the unique needs and challenges of your industry. 

Alternative Financing Options for Equipment 

If an equipment loan isn’t the best fit, consider: 

• Equipment leasing: You get lower monthly payments and easier upgrades, making it ideal for businesses needing flexibility and frequent technology or machinery updates. 
   

• SBA loans: These are government-backed loans with favorable rates and terms, designed to help your small businesses get equipment while minimizing upfront costs. 
   

• Business lines of credit: You get flexible funding to draw from, use it for equipment purchases, repairs, or other operational expenses without reapplying each time as they’re available again after repayment. 

FAQs: Equipment Financing 

1. Do Equipment Loans Require a Down Payment? 

Some lenders do require a small percentage upfront, while others finance 100% of the purchase price. 

2. What Rates and Terms Do Equipment Loans Come With? 

Rates vary based on credit, equipment type, and lender, with terms often ranging from 1 to 7 years. 

3. What Credit Score Do I Need to Get Equipment Financing? 

A score of 600+ is common, but you need strong revenue, or collateral to offset a lower score. 

4. What Kind of Equipment Can Be Purchased with a Loan? 

Anything with measurable value, such as vehicles machinery, medical devices, or office equipment. 

5. What Are the Repayment Terms for Equipment Loans? 

Fixed monthly payments over an agreed period, typically lasts 12–84 months. 

6. Equipment Loan vs. Equipment Leasing: What’s the Difference? 

A loan makes you the owner after payments; leasing means you rent the equipment for a set term and may return or buy it later. 

7. What Are the Pros and Cons of Equipment Loans? 

Pros: Ownership, tax deductions, resale potential. 
Cons: Higher monthly payments, depreciation risk. 

8. Is Equipment Financing Tax Deductible? 

Yes, in many cases you get to write off the cost under Section 179 if you purchase (not lease) the equipment. 

9. How to Apply for Equipment Financing with SBAC Funding 

1. Gather your documents: financial statements, credit history, and an equipment quote or invoice. 

2. Fill out SBAC Funding’s application online. 

3. Review your terms, accept, and receive funding. 

Apply for Equipment Financing 

About SBAC Funding 

SBAC Funding’s mission is to help small businesses in Illinois and beyond secure the capital they need to grow. From equipment financing to SBA loans, lines of credit, and more, SBAC Funding works with entrepreneurs in every industry to make growth possible without the cash crunch.