Equipment financing helps businesses purchase or lease machinery, vehicles, technology, and tools needed to operate and grow. Because the financing is tied to a specific asset, underwriting can be more straightforward than general-purpose loans especially when the equipment has strong resale value and clear documentation.
Equipment financing is funding used to acquire business equipment. It can be structured as an equipment loan (you finance the purchase) or an equipment lease (you pay to use the equipment under a lease structure). In many programs, the equipment itself acts as collateral, which can support approval and pricing depending on borrower profile and asset type.
“Equipment financing” is an umbrella term. Loan vs lease structures differ in ownership, accounting treatment, and end-of-term options.
Note: Tax and accounting treatment can vary (USA vs Canada). Consult a qualified tax professional for jurisdiction-specific guidance.