American Direct Funding Equipment Financing has options from 100% financing to short or long term loans, so we can help you get the equipment you need without putting a strain on your budget.
Equipment Financing.
When your business is short on money, American Direct Funding Equipment Financing can help. We have flexible short and long term financing options to help you get the equipment you need today.
An excellent way to grow your business without significant out of pocket expenses.
Applying will not affect your credit score
Guide to Equipment Financing
- What Is Equipment Financing?
- How Does Equipment Financing Work?
- Equipment Loan vs. Equipment Lease
- What Can Equipment Financing Be Used for?
- What Are The Benefits of Equipment Financing?
- Why choose American Direct Funding?
- What Do You Need to Be Eligible to Apply for Equipment Finance Loans?
- Our Loan Application Process
What Is Equipment Financing?
Equipment finance describes a loan or lease that is used to obtain business equipment. Business equipment may be any tangible asset other than real estate – examples include office furniture, computer equipment, machines used in manufacturing, medical equipment, and company vehicles.
Equipment financing is one of the more unsung types of small business financing available. With equipment financing, a business owner works with a lender to finance a piece—or multiple pieces—of business equipment that you need for your company. This could be either new or used equipment—it doesn’t matter.
How Does Equipment Financing Work?
The biggest difference between equipment loans and other types of small business loans is generally the structure. Equipment loans are meant to finance a very specific type of purchase—in this case, the gear you want to buy—whereas some other small business loans are more for working capital, which you can spend flexibly. (Some financing options do come in the form of working capital, too—we’ll get to those.)
With equipment financing, you work with a lender to secure your loan. You’ll generally need to bring a quote to your lender showing them how much the new or used item you want to buy will cost, or documentation of items of comparable value and utility. Generally, loans are granted on equipment that won’t rapidly depreciate and will retain value. Then, of course, when you’re approved, you’ll receive the money from your lender, which you can then use to financing the purchase of your new or used equipment.
In 2015, nearly 8 out of 10 (78%) of businesses used at least one form of equipment financing when acquiring equipment up from 72% of businesses in 2011.
Regardless of your industry, we can help you obtain the best deal on equipment financing for virtually every type of equipment. We work with a wide range of business types, including medical, software, manufacturing, commerce, food services, automotive, and much more.
Applying will not affect your credit score
Equipment Loan vs. Equipment Lease
Leasing, rather than buying, equipment may be an attractive option for any number of reasons. First, obtaining a loan to purchase equipment may not be viable if the borrower can’t cover the necessary down payment or qualify for the loan. Second, leasing is often a less expensive option, especially for short-term financing, as it usually requires no down payment and does not include having to pay a large amount of interest.
Another reason companies or business owners may consider leasing is related to the nature of the equipment being acquired. If you’re looking to finance equipment that quickly becomes obsolete and needs to be replaced, such as computer equipment or small printers, then leasing may be a much more favorable option.
The following are examples of equipment that may be a better candidate for leasing than buying:
- High tech computers
- Software
- Medical equipment
- Any equipment that gets a lot of wear and tear
The primary advantage of using a loan for equipment finance is owning the asset at the end of the loan term. The primary advantage of leasing is not having to worry about the equipment becoming outdated and losing value.
What Can Equipment Financing Be Used for?
Regardless of your industry, we can help you obtain the best deal on equipment financing for virtually every type of equipment. We work with a wide range of business types, including medical, software, manufacturing, commerce, food services, automotive, and much more. Below are some equipment businesses typically finance.
Restaurant
Restaurants require a ton of equipment, including grills, fryers, freezers, refrigerators, warmers, dishwashers, microwaves, commercial sinks, etc.
Construction
Everything from $1,000 lawnmowers to cranes selling for seven figures.
Transportation
Your everyday pickup trucks are the most common, but vans, trailers, and owners’ personal vehicles are also commonly financed.
Farming
Many pieces of modern equipment you see on a farm were financed, including tractors, ATV or UTV, milking machines, round baler, etc.
Printing
A lot of businesses finance their heavy-duty copiers and printers, but real printing equipment gets expensive fast.
Office
Plenty of start ups finance their office furniture including desks, chairs, and break room items such as freezers, microwaves and frigdes.
What Are The Benefits of Equipment Financing?
Simple, Fast Process: Streamlined process with a fully digital application and funding in as little as 24 hours.
Choose Your Vendor: Purchase the best equipment for your business, regardless of industry (no restrictions).
No Up-Front Fees: Finance the entire cost of the equipment, without high fees in the beginning.
Why Choose Us?
When you need cash for your growing or struggling business, it needs to be flexible and personalized. We look beyond credit and offer a customized loan that gives you the cash you need when you need it.
Applying will not affect your credit score
How American Direct Funding Works
01
Apply Online
Provide us your basic business information and get approved in as fast as 5 minutes.
02
Review Approved Terms
Review your approved options. After funding options selected, funds are deposited into your business checking account.
03
Make Payments
After payments made on time, you can renew or refinance your business line for more money and lower rates.
Real Success Stories. Real Customers.
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HAVE A QUESTION?
For more information, contact one of our friendly and knowledgeable financing experts today. Give us a call today at:
855-955-4921 OR
714-502-0523
