Equipment financing is an effective and easier way of obtaining fast funding than other forms of financing with minimal paperwork and short underwriting review-time.

Types of Equipment Financing Options :

• Equipment Loan
• Equipment Leasing

Equipment Loan - This type of financing is easier than other methods of financing because the asset to be acquired becomes collateral. This type of financing is favorable for the borrower, especially when the equipment is general purpose with limited obsolescence. Equipment loans include Vehicles, Tools, Computers, Electronic Technology and other fixed-assets.

Benefits of Equipment loans

Low obsolescence depending on idustry
You have the benefits of equity/ownership 
Flexibilty to use accrued equity to leverage working capital when in need
First - Year Expensing
Minimal paperwork
Quick decisions on average

In this type of financing, the amount of the loan depends on the cost of the equipment/fixed asset that has been purchased or have been refinanced and the advance rates to be provided. Aside from the value of the equipment to be financed, the amount of the loan will depend on the companies' historical and projected revenues and cash flow. Debt coverage ratio of at least 1.25 to 1 or a minimum of 1 to 1 will be required.

Financial statements required:

• 3 yrs Business tax returns
• interim business statements (balance sheet and income statement)
• projections for three to five years.
• Personal statements and tax returns (If Requested)

Equipment Leasing - As businesses are always in need of equipment, furniture, vehicles, software and other assets, more and more companies are turning to equipment leasing for quick financing and reasonable monthly flat-rate terms and/or perhaps flexible terms suited for your situation that can be available. This type of financing allows you to get the equipment you need to accelerate your business without digging into your credit and can also provide a very attractive tax write-off as well. With this type of financing, it is easier for a business to get approved as large amounts of collateral is not needed to secure the property as well as good credit is not essential as credit requirements are generally lower. Another benefit is, for nothing down, a business can have immediate access to the equipment. When the lease comes to an end, the business may purchase the equipment for its fair market value or a fixed amount or perhaps pre-determined, continue leasing, lease some new equipment or simply return it.

Benefits of Equipment Leasing :

• Quick approvals
• Flexible terms such as stepped payment plans, seasonal schedules and custom terms
• Minimal paperwork
• Tax deductible
• Maximizes cash flow
• Abundant leasing funding from institutional investors
• Flexible leasing options