How businesses spread the cost of tangible assets over time.
It funds tangible business assets such as machinery, vehicles, technology, and software, spreading the cost over time instead of paying for everything at once.
A wide range of equipment can qualify, from general machinery to industry-specific tools, depending on the asset and its expected working life.
Terms are often aligned to the useful life of the asset, so longer-lasting equipment can support a longer repayment schedule.
Applicants are sometimes sorted into grade tiers based on credit strength, and the assigned tier can influence the terms that are offered.
Financing equipment can carry potential tax advantages, though the specifics depend on the business's situation and are best confirmed with a tax professional.
The financed asset frequently serves as the security for the arrangement, which can reduce the need for additional collateral.