How it works
Equipment financing helps a business acquire eligible tools, machinery, vehicles, or technology without paying the entire purchase price at once. Depending on the offer, it may be a loan secured by the equipment or a lease with different ownership terms.
Picture this
A plumbing company needs a second service truck to take on more appointments. Financing could spread the purchase cost across future operating periods while the truck goes to work.
Example only. The right product depends on your business and the terms offered.
When it may be worth exploring
- Replacing equipment that is unreliable or costly to maintain
- Adding capacity to take on more work
- Buying an asset with a useful life that supports its payment schedule
What to compare in an offer
- Cash required up front and all payments over the agreement
- Who owns the equipment during and at the end of the term
- End-of-term purchase or return options on a lease
- Insurance, maintenance, taxes, and what happens if the equipment fails
Common questions
What is the difference between financing and leasing?
With a loan, the business typically purchases the equipment and repays the lender. A lease grants use under its contract; ownership and end-of-term choices depend on the lease.
Can used equipment qualify?
Some providers consider used equipment, but age, condition, seller, and appraisal requirements can affect eligibility.
Does the equipment serve as collateral?
Often it does, although a lender may require additional security or a personal guarantee. Review the actual offer.
This page is general information, not an offer or approval. Products, eligibility, rates, fees, and terms vary by lender and applicant. Altora Capital Group is an independent referral partner of ROK Financial.