Run your numbers
Why equipment terms run longer
The equipment itself secures the loan, so terms often match its useful life and rates can be lower than unsecured funding.
Match the term to how long the machine will produce revenue. A payment that ends before the equipment wears out leaves years of payment-free production. See equipment financing.
Will the machine pay for itself?
Compare the monthly payment with the extra monthly profit the equipment produces.
If the machine adds more profit than the payment from month one, it pays for itself. Work it through in the equipment payback period guide.
Frequently asked questions
Do I need a down payment?
Not always. Some equipment financing covers 100 percent of the price for strong files; others ask for 10 to 20 percent.
Can I finance used equipment?
Often yes, though terms may be shorter for older equipment.