What is Equipment Financing?
Equipment financing is the use of a loan or lease to purchase or borrow hard assets like machinery for your business. Rather than paying for the assets in full upfront, equipment financing allows you to receive the equipment you need now while allowing you to pay for the asset over a period of time. This is ideal for purchasing healthcare equipment, construction vehicles and machinery, kitchen equipment, and other large hard asset purchases that allow you to increase production and grow your business.
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Ideal Financing For Your Business
An equipment loan is a loan taken out with the intended purpose of purchasing equipment. Typically, the equipment secures the loan meaning that if you can no longer afford to pay the loan, the equipment gets repossessed as collateral.
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These loans are perfect for business owners that need a piece of equipment long-term but can’t afford to make the purchase upfront as the lending institution typically agrees to deploy the majority of the capital so that you can pay in periodic phases. While the arrangement will ultimately cost more than if you had bought the equipment upfront, equipment loans allow you to receive the equipment you need, while leaving you with sufficient working capital.
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Equipment Financing Details
Advantages
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Allows you to buy or lease equipment you could otherwise not afford
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Equipment is often collateralized, making it easier to qualify for
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More favorable loan terms and interest rates than many alternative financing options
Disadvantages
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Usage is restricted to equipment, that means you won't be able to cover other expenses with the loan
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Buying the equipment outright will always be less expensive than financing it
Will your business qualify?
Approval for equipment financing from Mahomes Capital Funding isn’t based on your credit score alone. We focus on the overall health of your business. Here are some factors we consider:
670+ personal credit score for startups
580+ personal credit score for 2+ years in business
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Which documentation is required?
We at Mahomes Capital Funding want to make the funding process as simple as possible for you. Therefore, minimal documentation is needed for your application
Signed one page funding application
3-5 most recent months company bank statements
Invoice or quote for the equipment
