Equipment Financing

Purchasing new machinery, vehicles, technology, or other business equipment can require a significant upfront investment.

Equipment financing can help businesses acquire essential assets while preserving cash and working capital for operations and growth.

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Lirodean helps companies evaluate equipment financing solutions through banks, equipment finance companies, leasing providers, and other financing sources.

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What Is Equipment Financing?

Equipment financing is used specifically to acquire business equipment.

Depending on the transaction, financing may be structured as an equipment loan, lease, or another specialized financing arrangement.

The equipment itself may serve as collateral for the financing.

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What Types of Equipment Can Be Financed?

Depending on the lender and industry, financing may be available for:

• Manufacturing machinery

• Construction equipment

• Commercial vehicles

• Medical and dental equipment

• Technology and IT systems

• Warehouse equipment

• Restaurant and commercial kitchen equipment

• Industrial equipment

• Specialized business machinery

• Other qualifying business assets

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Equipment Loan vs. Equipment Lease

An equipment loan generally allows the business to purchase and own the equipment while repaying the financing over an agreed period.

A lease allows the business to use equipment according to the terms of the lease agreement and may offer different end-of-term options.

The appropriate structure depends on factors such as equipment type, useful life, cash flow, accounting considerations, and business objectives.

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Why Finance Equipment Instead of Paying Cash?

Using cash to purchase equipment can reduce liquidity available for:

• Payroll

• Inventory

• Suppliers

• Marketing

• New projects

• Unexpected expenses

• Business expansion

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Financing can allow a business to spread the cost of an asset over time while preserving working capital.

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Can Used Equipment Be Financed?

Potentially.

Some lenders finance qualifying used equipment, depending on factors such as age, condition, value, remaining useful life, and resale market.

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How Much Equipment Financing Can I Qualify For?

Financing capacity depends on the business, lender, and equipment.

Lenders may evaluate:

• Equipment cost and value

• Type and age of equipment

• Annual business revenue

• Cash flow and profitability

• Time in business

• Credit profile

• Existing debt

• Down payment or equity contribution

• Expected useful life of the equipment

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Equipment Financing for Growing Businesses

Equipment investment can increase production capacity, improve efficiency, reduce operating costs, and allow a business to accept additional work.

The right financing structure can help a company make those investments without unnecessarily reducing operating liquidity.

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How Lirodean Helps

Lirodean evaluates the equipment purchase, company financial profile, and financing objectives before identifying potential financing providers.

For larger transactions, we can also evaluate whether financing the equipment separately or incorporating it into a broader credit structure may be more appropriate.

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Need to Finance Business Equipment?

Whether your company needs machinery, vehicles, technology, construction equipment, or other business assets, Lirodean can help evaluate available financing options.