Equipment financing

There are multiple ways to obtain the equipment you need for your business.

These include:

Financing equipment can mitigate the risks inherent in the purchase or large-ticket assets and free cash up for inventory, marketing, research and development, and other costs.

Get started: Book a phone appointment with us.

Why Finance Equipment?

Maintain and free up cash flow
Benefit from IRS Section 179 (applicable to capital leases)
Keep up to date with new technology
Leverage equipment expertise
100% financing with zero down payment available in some cases

Equipment Finance Structures

We focus on two options: capital lease or operating lease.

Equipment Finance Agreement (EFA)

Capital Lease: Through an Equipment Finance Agreement (EFA) you make monthly payments over a term period of years and own the equipment once it’s paid off. (A capital lease is sometimes referred to as a finance lease or sales lease.)

This is an on-balance sheet structure. Equipment is recorded as an asset and can be depreciated, which means the payments are not fully tax-deductible.

Save Money With Section 179

However, thanks to Section 179 of the IRS tax code, you can deduct the full purchase price of qualifying equipment and software – up to $1 million – from your gross revenue. You can also deduct 100% of the depreciation.

Here’s an example of how Section 179 works:

Equipment purchases:	$1,190,000
First year write-off: ($1 million maximum in 2019)	$1,000,000
100% Bonus first year depreciation	$190,000
Total first year deduction:	$1,190,000
Cash savings: ($1,190,000 x 35% tax rate)	$416,500
Equipment cost after tax: (Assuming a 35% tax bracket)	$773,500

Fair Market Value (FMV)

Under an operating lease, you make monthly payments on your equipment.

At the end of the term you have the option to buy the equipment at fair market value, return the equipment, finance it again, or lease new equipment.

This is off-balance sheet financing. Most FMV lease payments are 100% tax deductible.

An operating lease is a good option for businesses that need to regularly upgrade to recent models.

Industries and Equipment Funding

Below are some typical industries we serve and common types of equipment requests we process. (This is not an exhaustive list.)

Exclusions: guns, boats, planes.

Construction

Yellow iron: Cranes, excavators, bulldozers, motor graders, wheel loaders, dumpers, loader backhoes, compact track loaders, crawler loaders, etc.
Trucks
Rock crushers
Cement mixers
Plumbing-related equipment
Electrical-related equipment
Mixed fleet data solutions (software)
Drones
Tools

Manufacturing

CNC machines
3D printing equipment
Robotics
Conveyors

Snow Removal and Landscaping

Trucks, snowplows and related accessories
De-icing/salting/sanding equipment including conveyor chain spreaders and hopper spreaders
Snowblowers
Landscaping vehicles and equipment

Retail

Fixtures
Signage
POS systems
Alarms and security technology

Healthcare

Ambulances
Medical diagnostic equipment
Dental equipment
X-Ray machines
Software

Restaurants and Bars

Cooking and refrigeration equipment including walk-in coolers
Commercial sinks, work tables, and beverage equipment
Food display and merchandising equipment
Dishwashing equipment
POS systems
Security systems
Furniture

OTR Trucking

Long-haul sleeper cab*
New and used trailers including drop decks, double drop decks, lowboys, extendable trailers, flat beds, end dumps, bottom dumps, side dumps, dry vans, hydraulic tails, slide axles, tank trailers, belt trailers, hopper/grain trailers, live floor trailers, chipper trailers.
Short-haul day cab

* Applicants typically need to have 3 trucks in their fleet already. Exception: We do have startup programs for owners of 1 truck; requires a 25% downpayment.

Towing and Hauling

Tow trucks
Dump trucks
Moving trucks/ Box trucks

Office equipment

Computers, printers and other electronics
Hardware and software
Desks and furniture
Video and phone equipment
Vehicles

Farm equipment

Tractors
Trucks
Backhoes
Balers
Loaders
Seed drills
Cultivators
Cultipackers
Plows
Harvesters
Front-end loaders, skid-steer loaders
Bulk milk cooling tanks
Milking machines

Get started with equipment financing.

IRS issues guidance on Section 179 expenses and Section 168(g) depreciation under Tax Cuts and Jobs Act