Equipment
Lending & Financing

Need machinery, technology, or vehicles to power your small business or franchise? Equipment financing provides targeted funding to acquire the tools you need without draining your cash reserves. Whether upgrading equipment, expanding production, or launching new services, this financing solution offers flexibility and efficiency. LoanBox streamlines the process, connecting you with lenders tailored to your equipment needs.

What Is Equipment Financing?

Equipment financing is a specialized loan or lease designed to help businesses purchase essential equipment, from machinery to software, ensuring you have the tools to succeed.

Purpose: Fund the purchase or lease of equipment like vehicles, manufacturing tools, IT systems, or kitchen appliances, covering costs outright or through structured payments.

  • Use Cases:

    • Buy a delivery truck for a logistics business.

    • Upgrade manufacturing machinery to boost production.

    • Purchase point-of-sale systems for a retail operation.

Frequently Asked Questions (FAQ)

Q: What equipment can I finance with these loans?
A: You can finance business-essential equipment like machinery, vehicles, IT systems, or appliances. SBA loans require equipment to be used for business purposes, with quotes or invoices to verify costs. LoanBox ensures your financing aligns with eligible equipment.

Q: Do I need a down payment for equipment financing?
A: SBA loans typically require a 10% equity injection, waivable if your business has a 9:1 debt-to-worth ratio or meets other conditions (e.g., 50%+ equity contribution). Conventional loans need 10–25% (75–90% LTV). LoanBox structures injections to meet requirements.

Q: Does the equipment serve as collateral?
A: Yes, the financed equipment is primary collateral for SBA and conventional loans. For SBA loans over $350,000, additional assets or real estate (25%+ equity) may be required if equipment value is insufficient. A HELOC can avoid home liens. LoanBox optimizes collateral strategies.

Q: Should I choose a loan or lease for equipment?
A: Loans are best for owning equipment long-term, with potential tax deductions for depreciation. Leases offer lower upfront costs and flexibility to upgrade. LoanBox advisors help you weigh options based on your business needs and cash flow.