Commercial Equipment Loans

A commercial equipment loan is specifically used for purchasing equipment. It uses the equipment as collateral, often resulting in better terms and lower interest rates. A regular business loan is more general and can be used for various purposes, requiring different forms of collateral and a longer approval process.

With an equipment loan, the equipment is the collateral. If a business owner doesn't meet the terms of the agreement, the financing partner may reclaim the piece of equipment but nothing else.

You can purchase heavy machinery, company vehicles, manufacturing equipment and more with an equipment loan. Commercial equipment loans can be a great solution for purchasing, repairing or replacing large-scale business machinery.

To qualify for a commercial equipment loan, lenders typically consider several factors:

• Credit Score: Both your business and personal credit scores are important.
• Time in Business: An equipment loan from Seacoast requires businesses that have been operating for at least 3 years and be a Florida-based business.
• Revenue: Your business's annual revenue will be assessed.
• Equipment Value: The value of the equipment you wish to purchase.

Yes, there are several tax benefits associated with commercial equipment loans. We highly recommend consulting with a professional tax advisor for your specific benefits. Some of the more common are:

• Section 179 Deduction: This allows businesses to deduct the full purchase price of qualifying equipment financed during the tax year.
• Bonus Depreciation: You can depreciate a large percentage of the equipment's cost in the first year.
• Interest Expense Deduction: The interest paid on equipment loans is often tax-deductible.

These benefits can make equipment financing an attractive option for managing your business's financial health and growth. Always consult with a tax advisor first to understand the specific tax implications for your business.