You’ll need excellent credit to get equipment financing. Applying through your local bank or an online financing company like BridgeSquare can help you discover what kinds of business equipment loans you can qualify for.

It depends on how much money you need and your qualifications. Businesses with good credit that have a good history are more likely to get equipment loans. It’s important to find out what lenders are looking for before you apply for a loan.

Some equipment loans have interest rates almost as high as 10%. Businesses with poor credit are more likely to get higher interest rate loans than those with good credit. Some interest rates are as low as 2.8% and businesses with great credit and a good business history are more likely to get that rate.

You can finance equipment from two to seven years. The lender will determine if the used equipment you want to purchase is eligible for a longer or shorter term loan.

Yes, you can use the Section 179 tax deduction for equipment financing for your business. This write-off allows you to deduct the entire purchase price of the equipment you purchased in the qualifying year. A good accountant will ensure that all your expense are accounted for and deducted correctly.

Depending upon the nature of the equipment, its useful life, and whether or not the intention is to keep it as a long-term asset, an equipment loan could make sense for a small business. Because in some situations, a lease can cost more than a loan, many businesses choose to finance the purchase of equipment rather than lease. Additionally, the entire amount of a lease payment may not be tax deductible if your lease terms include any provision allowing you to own the equipment at the end of the lease. You’ll need to consult with your accountant or financial advisor to see if this is the case for your situation.