Benefits of Equipment Financing

Learn more about this fast, hassle-free funding option.

Key benefits of equipment financing.

Is equipment financing, also known as an equipment loan, better than making a big one-time payment for business equipment, vehicles, or technology? There is no right or wrong answer to this question, as every small business owner has their own way of doing things.

That said, it is important to know some of the benefits of equipment financing. That way you can make the best decision for your company, and your budget. Balboa Capital developed this list to help guide you in the right direction.

  • Application-only for hard collateral up to $500,000
  • Application-only for soft collateral up to $350,000
  • Same-day funding
  • Easy online application
  • All credit considered
  • One-hour approval decisions
  • Simple repayment terms
  • Competitive rates

Reduced cash outlay.

Of all the advantages of equipment financing, we have this one at the top of our list. That is because saving cash is a primary goal of business owners like you. Financing preserves your working capital that would otherwise be used if you were to make a large one-time payment for your equipment. You will only be responsible for predictable monthly payments over a specific term length.

benefits of equipment financing

Easy approvals and fast funding.

You do not need a high credit score in order to get approved for equipment financing. Plus, you will not need to fill out piles of paperwork. With Balboa Capital, you can apply for equipment financing online and get a credit decision promptly during our normal business hours. We have several term options for you to choose from. Once you are approved, we might be able to provide you with funding on the same day that you submit your application.

male business owner talking on his mobile phone

Potential tax deductions.

Tax deductions are one of the biggest benefits of equipment financing. If the equipment you purchase qualifies for the Section 179 tax deduction, you might be able to expense all or portions of the cost. Check with your accountant to find out if the equipment you want to finance is eligible under Section 179.

close up of hand on a calculator

Keeps equipment current.

Equipment financing can help you stay on top of the latest advances in equipment, technology, and machinery, to name just a few, without having to break the bank or use up your credit line. If you are in the market for new equipment, a custom-tailored financing plan can help you acquire it quickly and easily. As you know, upgrading to newer equipment can give your company a competitive edge.

modern business office with a beautiful view

Better balance sheets.

Helping you keep an attractive balance sheet is another advantage of equipment financing. That is because your monthly equipment loan payments are viewed as a business expense instead of a liability or long-term debt. As you know, having little or no debt on your financial statements is a huge benefit that can improve your Paydex score.

close up of a pen on a business balance sheet