Gear up for success: flexible financing for the equipment you need to grow your business.
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Equipment Financing at a Glance
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Equipment financing allows you to get the equipment you need and ensure that your business isn’t ever held back by outdated or insufficient equipment.
Section 179 of the IRS Tax Code allows businesses to deduct part or all of the purchase amount of qualifying equipment for the year in which it was purchased or financed.
Get the tools you need without worrying about eating up your working capital or draining your savings, and with flexible rates and terms that work with your business.
Business equipment financing and equipment leasing are both methods to acquire essential tools for your business, but they differ in certain aspects.
Equipment financing involves securing a loan to purchase your equipment, taking ownership of your new assets and repaying your loan over time with interest. Once the loan is paid off, you fully own the equipment you’ve financed.
Leasing allows you to use the equipment you need for a set period of time through regular monthly payments. You do not own the equipment unless you are given the option to purchase it at the end of the lease term. If you choose not to purchase, you can return the equipment once the term is over or continue to use it by extending your lease.
Find customized commercial equipment financing rates and terms that get you the equipment you need to keep your business competitive without overextending your budget. There are no maximum financing amounts, 100% of the equipment cost can be financed and no down payments for qualified buyers. Used equipment can be financed too!
For financing up to $350,000, well qualified borrowers can enjoy a quick and simple app-only submission process, providing you with an automated decision on your financing, saving you time while getting the equipment you need onsite quickly.
Businesses in nearly every industry can find a use for equipment financing. Here are just a few of the most popular types of equipment purchased with the help of equipment financing auto shop equipment, beverage and brewery equipment, salon equipment, dental and medical equipment, landscape and lawn equipment, laundromat equipment and restaurant equipment.
Section 179 of the IRS Tax Code allows qualified businesses to deduct part or all of the purchase amount of qualifying equipment for the year in which it was purchased or financed. By financing equipment through Kapitus, you may be eligible for this tax deduction. Consult with your accountant to determine if your equipment purchase qualifies.
Before you can secure your Equipment Financing through Kapitus, we ask that you meet a few minimum requirements:
3 years (1 Year for Credit Scores of 775+)
$15K for non-titled equipment
$25K for titled equipment
675
USA
Equipment financing for small businesses comes with a set of minimum requirements to serve as a safeguard for all parties involved. Here are some of the factors that are considered:
Equipment financing is a credit-based product, meaning an approval is based heavily on your credit score. In fact, the more expensive your equipment, the higher your credit score needs to be and the more difficult it may be to approve you for financing.
Your operational history allows equipment financing companies to see trends in how you run your business both operationally and financially. Having at least three years in business provides an adequate amount of time to determine if your business can handle the payments associated with purchasing the equipment.
There are different criteria considered during the underwriting process based on whether you are looking to financing titled versus non-titled equipment. Ownership of titled equipment is typically more complex than non-titled, so a higher minimum cost is required in the event of default so the financing company can cover the opex cost of recouping lost funds.
Of course, these are not the only criteria needed to acquire equipment financing. Additional qualifications may be required based on the health of your business, the equipment you are purchasing and the cost of that equipment.
Speak with a Kapitus Financing Specialist to learn more.
Can the equipment I am purchasing be used as collateral?
Yes! cross-collateral is not required for equipment financing. The equipment you are purchasing is the only collateral needed for approval.
Can a newer, “startup” business get equipment financing?
Many times, yes.
While our lending network generally requires a minimum of 3 years of operational history, if you have an excellent credit score (775+), then 1 year in business will be considered.
Is it difficult to get equipment financing?
Securing equipment financing through Kapitus is a simple and straightforward process.
Fill out our short application form and upload your equipment invoice to receive a non-binding pre-approval. For equipment costing less than $350,000, well-qualified borrowers can enjoy an app-only submission process.
Do I need good credit to get equipment financing?
A credit score of 675 is generally required for equipment financing, however, the business behind the paper is fully considered, and credit-challenged customers can receive non-binding pre-approvals for equipment purchases.
Reach out to one of our financing specialists to inquire further.
What are the typical terms for equipment financing?
Equipment financing terms can go out as far as 60 months.
What happens at the end of an equipment financing term?
If your financing obligation is paid in full at the end of your financing terms, you fully own the equipment you purchased and nothing further is needed.
How does equipment financing repayment work?
Upon approval, your financing specialist will discuss your financing package further to decide upon the repayment terms and rates that best fit your capacity and business needs. You will be making payments to your lender, not the vendor or entity from which you purchased the equipment.
Can I finance the full cost of the equipment?
You can finance up to 100% of your equipment cost with rates starting at 8.99% and terms of up to 60 months. You can finance both new and used equipment!
What type of equipment can be financed?
Almost any type of equipment you need to run your business can be financed – from vehicles to software. Here are some of business needs you can cover:
Can used equipment be financed?
Absolutely! You may need to submit a bit of extra paperwork but used equipment can be financed.
Can I pay off equipment financing early?
The ability to pay off debt early is proof of a business’s success and financial responsibility. There are no penalties for paying off your equipment debt early.
How much does equipment financing cost?
The cost of your Equipment Financing will vary on several factors, such as the amount being financed, your personal credit score, and your business’s financial health.
Equipment financing through Kapitus starts at 8.99% interest and have repayment terms of up to 60 months.
Can I lease equipment instead of buying it?
Yes! You do have the option to lease your equipment, so long as the equipment vendor allows it. To learn more about leasing equipment, contact a Kapitus financing specialist at 646-257-5406
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Copyright 2024 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc. Loans made or brokered in California are made or brokered pursuant to California Finance Lenders License No. 603-G807.