Equipment Finance Companies
Equipment financing refers to a loan used to purchase business-related equipment, such as a commercial oven, a vehicle or a 3D printer. Equipment loans provide for periodic payments that include interest and principal over a fixed term. As security for the loan, the lender may require a lien on the equipment as collateral against your debt. Once the loan is paid in full, you own the equipment free of any lien.
The structure of an equipment loan may also impose a lien upon additional business assets or require a personal guarantee. Failure to pay your loan may result in the repossession of your business assets or your personal assets—in the case of a personal guarantee. A careful review of the loan terms is vital to understanding your risk.
Equipment financing is distinct from equipment leasing, wherein you pay the owner of the equipment periodic rent for use of the equipment over an agreed-upon period of time. At the end of the leasing term, unless you agree with the owner on renewal terms or a buyout, the equipment is returned to the owner. Generally, the qualifications for leasing are less stringent than for financing; however, if the equipment is necessary to your business, the endless payments on leased equipment without the prospect of future outright ownership may prove a more costly option.
This is not an endorsement for these companies so please perform your own due diligence before working with them.