An equipment loan allows you to borrow money for expensive equipment for your business. You will pay down the loan over time, plus interest. At the end of the loan, you will fully own your piece of equipment.
Equipment loans are self-collateralized, meaning you are borrowing against the piece of equipment itself. If you default on your loan, the lender can seize the piece of equipment, but nothing else.
For an equipment lease, the lender purchases the equipment and leases it to you at a predetermined amount every month. At the end of the month, the lender still owns the equipment. With a business equipment loan, you, as the business owner, purchase the equipment through a loan and pay it down every month with interest. At the end of the loan, you fully own the piece of equipment.
Any equipment that your business needs and wouldn’t be able to pay for upfront. This could be anything like kitchen equipment, like stoves and dishwashers, to office equipment, like desks and chairs, or HVAC systems.
Florida-based business and must be in business for a minimum of 3 years.