Equipment financing and leasing with the asset as collateral
Buy or lease vehicles, machinery and technology with the equipment as the collateral.
Equipment Financing overview
- Typical amount
- $10K to $5M
- Typical term
- 2 to 7 years
- Time to fund
- 2 to 10 days
Ranges are typical for this type of financing. Your amount, term and pricing depend on the lender and your business profile.
How it works
Equipment financing uses the equipment you are buying as the collateral, which is why approval is easier and rates are lower than an unsecured loan of the same size. Terms track the useful life of the asset, so a truck, a CNC machine or a dental chair is paid off over the years it produces revenue.
Both loans and leases are available. A loan builds equity and ends in ownership. A lease keeps payments lower and lets you upgrade at the end of the term. Capital Ally works with lenders across construction, transportation, medical, manufacturing and restaurant equipment and can often fund up to 100 percent of the invoice including soft costs.
Best for
- Trucks, trailers and fleet vehicles
- Construction and manufacturing machinery
- Medical, dental and lab equipment
- Restaurant and commercial kitchen build-outs
What businesses use it for
Fleet expansion
Add trucks or vans as contracts grow, with each vehicle financed on its own schedule.
Production capacity
Finance the machine that lets you take the larger order.
Technology refresh
Lease equipment that dates quickly so you can upgrade rather than own something obsolete.
How it compares
Equipment financing vs term loans
Equipment financing is usually cheaper for a specific asset because the asset secures it. A term loan is more flexible about what the money buys.
Equipment financing vs sba loans
SBA can go longer on heavy equipment, but takes months. Equipment financing closes in days.
Equipment Financing: common questions
See all questionsLoan or lease?
A loan ends in ownership and suits equipment with a long life. A lease has lower payments and suits equipment you will replace in a few years.
Can I finance used equipment?
Yes. Most lenders finance used equipment with a limit on age and hours, and titled assets like vehicles are the simplest.
Is a down payment required?
It depends on the file. Strong credit and history can qualify for 100 percent financing; newer businesses typically put down 10 to 20 percent.
Other funding solutions
Ready to apply for Equipment financing?
Two minutes to check eligibility. A specialist reviews it the same day. No credit impact, no obligation.