Equipment Finance

Equipment finance is used to purchase equipment for your business. The lender will give you the cash to purchase the equipment, which then becomes the security for the loan.

Every lender has different requirements, and each application form will have its own set of questions. At the very least, for most business loans, you can expect to provide business registration details, financial, tax and cash flow statements, and balance sheets.

Typical finance terms for equipment loans range between three months and seven years.

If you’re in construction, a chattel mortgage—which is a type of equipment finance—could be a great fit for financing cars, trucks, tractors, or other large pieces of machinery. It allows you to own the asset from the get-go and make repayments over time, without the need to put existing assets on the line for collateral. Instead, the equipment itself is secured against the chattel mortgage.

Yes, you can use equipment financing to purchase or upgrade restaurant equipment, from commercial ovens and walk-in freezers to industrial range hoods, commercial dishwashers, and more.

A balloon payment is a lump-sum payment that’s due at the end of a loan term—commonly used in equipment finance, business car loans, and chattel mortgages. It lowers your monthly repayments but will increase the amount of interest you pay over the course of your loan.