Equipment Financing for Small Businesses
Invest in essential equipment without draining your working capital.
What is Equipment Financing?
Equipment financing is a business loan or lease specifically designed to help you purchase the tools, vehicles, machinery, or technology your business needs to operate and grow. Instead of paying the full cost upfront, you spread the expense over time through monthly payments—keeping your cash flow healthy while accessing the assets that keep your business running.
Whether you’re replacing outdated machinery, upgrading your tech stack, or scaling operations with new vehicles or tools, equipment financing allows you to acquire essential assets without compromising day-to-day operations.
How Does Equipment Financing Work?
Equipment financing is a collateral-backed loan where the equipment you’re purchasing serves as security for the loan. This structure reduces the lender’s risk, which means:
- Lower qualification requirements
- More favorable interest rates
- Minimal or no down payment
Here’s how a typical equipment financing process looks:
- Choose the equipment you want to purchase
- Apply for financing through SQR Financial
- Once approved, we fund the purchase (or reimburse you)
- You repay the loan in fixed monthly installments over 1–7 years
When the loan is fully paid, the equipment is yours.
Apply Here
What Can You Finance with an Equipment Loan?
At SQR Financial, we finance a wide range of equipment types. If it helps your business produce, serve, or scale, there’s a good chance it qualifies.
✔ Construction Equipment
Excavators, bulldozers, loaders, and cranes for contractors and developers.
✔ Commercial Vehicles
Box trucks, delivery vans, dump trucks, refrigerated trailers, etc.
✔ Manufacturing Machinery
CNC machines, conveyor belts, press tools, 3D printers, and more.
✔ Medical & Dental Devices
X-ray machines, ultrasound scanners, dental chairs, and lab equipment.
✔ Restaurant & Food Service Equipment
Ovens, fryers, walk-in coolers, POS systems, and prep stations.
✔ Technology & Office Equipment
Servers, computers, software systems, copiers, and video conferencing tools.
If your business relies on it to function, we can help finance it.
Benefits of Equipment Financing with SQR Financial
We believe that the right tools should never be out of reach. That’s why we offer:
Fast approvals (24–72 hours)
100% equipment financing—no large down payment required
Competitive interest rates based on your credit and business profile
Flexible loan terms up to 7 years
New or used equipment eligibility
Preserve your working capital for day-to-day operations
Tax benefits—potential Section 179 deductions for qualified purchases
Equipment Loan vs. Equipment Lease: What’s the Difference?
| Feature | Equipment Loan | Equipment Lease |
|---|---|---|
| Ownership | You own the equipment after term ends | Lessor retains ownership |
| Monthly Payments | Typically lower overall cost | Possibly lower initial payments |
| Tax Benefits | Section 179 depreciation available | Lease payments may be deductible |
| Ideal For | Long-term use of essential equipment | Short-term or rapidly outdated tech |
How to Get Started with Equipment Financing
Getting approved for equipment financing through SQR Financial is simple and straightforward:
1. Apply Online
Fill out our short form with basic business and equipment details. No hard credit check required to get started.
2. Get Matched with the Right Offer
We’ll assess your profile and connect you with tailored financing options from trusted lending partners.
3. Purchase Equipment & Begin Repayment
Once approved, funds are disbursed quickly so you can acquire your equipment and start using it immediately.
FAQs: Equipment Financing at SQR Financial
What is equipment financing, and how does it differ from a traditional loan?
Equipment financing is a loan specifically used to purchase business-related equipment, such as vehicles, machinery, or technology. Unlike traditional business loans that provide general-purpose capital, equipment financing is tied directly to the asset you’re buying. The equipment itself serves as collateral, which reduces the lender’s risk and makes it easier for businesses—especially small or newer ones—to qualify.
Can I qualify for equipment financing with bad or fair credit?
Yes, you can still qualify even if you have a low credit score. Because the loan is backed by the equipment you’re purchasing, lenders are often more flexible with credit requirements. That said, your credit score will affect your interest rate, down payment, and loan terms. If you have poor credit but strong business revenue or a solid business plan, you may still be eligible for competitive offers.
What types of equipment can I finance through SQR Financial?
We help finance nearly all types of tangible, revenue-generating equipment. This includes (but is not limited to):
- Construction and heavy machinery
- Commercial vehicles and delivery vans
- Medical and diagnostic equipment
- Restaurant and kitchen appliances
- Manufacturing tools and CNC machines
- Computers, servers, and IT systems
- Office furniture and technology
- Point-of-sale (POS) systems
If the equipment is essential to your operations, there’s a good chance we can finance it.
Is it better to lease or finance equipment?
It depends on your business needs:
- Finance (Loan): You own the equipment after the loan is paid off. Best for equipment that will be used long-term and doesn’t become obsolete quickly.
- Lease: You pay to use the equipment for a set period and may return it or buy it at the end. Better for short-term use or items like technology that require frequent upgrades.
Our advisors can help you evaluate both based on cost, tax impact, and operational flexibility.
What are the interest rates for equipment financing?
Interest rates vary depending on factors like:
- Your credit score
- Time in business
- Type and cost of the equipment
- Loan amount and term length
Typical interest rates for equipment loans range from 5% to 30%. Borrowers with excellent credit and financials can access the lowest rates, while newer businesses or those with fair credit may see higher rates due to increased risk.
Do I need to make a down payment?
Many equipment loans cover 100% of the purchase price, especially if your credit and business financials are strong. However, depending on your profile or the nature of the equipment, you may be required to contribute 5% to 20% as a down payment. In most cases, down payments are lower than those required for traditional term loans or SBA financing.
How quickly can I get approved and funded?
With SQR Financial, approvals can happen within 24 to 72 hours, and funds are typically disbursed shortly after. Once the loan is finalized, we can either pay the vendor directly or reimburse you if you’ve already made the purchase. This quick turnaround helps prevent disruptions to your business operations.
Can I finance used or refurbished equipment?
Absolutely. Used or pre-owned equipment can often be financed as long as it meets the lender’s criteria regarding age, condition, and resale value. In some cases, used equipment may have slightly higher rates or shorter loan terms, but it’s still a great option for cost-conscious businesses.
What are the loan terms and repayment options?
Loan terms typically range from 12 to 84 months (1 to 7 years), depending on the value and expected lifespan of the equipment. Repayment is made in monthly fixed installments, making it easy to budget. Some lenders may offer seasonal repayment schedules or deferments if your business has fluctuating revenue cycles.
Will I own the equipment at the end of the loan?
Yes—if you choose equipment financing, you’ll own the equipment outright once all payments are complete. This is different from equipment leasing, where ownership depends on the lease agreement (some offer buyout options). With equipment loans, your business builds equity in the asset while using it to generate revenue.