Orchardpeak Business Funding, a small-business funding service in Stillwater, OK, explains equipment financing and leasing for new and used equipment: kitchen lines, service vans, lifts, mowers and clinical chairs. The page compares loans and leases, shows what a quote should include, and lists what funding partners review.
| Pays for | Vehicles, machines, kitchen lines, clinical and shop equipment |
|---|---|
| Security | Usually the equipment |
| Structures | Loan, lease, lease with purchase option |
| Decided by | The funding partner |
Getting a small business loan for equipment, quote first
- Get a written quote: make, model, year, condition, price and seller.
- Decide whether you want to own the item outright or lease it.
- Pull the latest business bank statements and the entity details.
- Send the request; a partner reviews the business and the equipment and decides.
Because the equipment secures the financing, partners care about its resale value and useful life. A standard work truck and a custom-built machine are reviewed differently.
Used equipment financing
Used equipment financing for small business is a separate question from financing new, and partners treat the two differently. Partners may ask more questions about used items: age, hours or mileage, condition, and whether the seller is a dealer or a private party. A dealer invoice and an inspection report give the review more to work from. Terms on older equipment may be shorter, because the item has fewer useful years left to secure the loan.
Restaurant equipment
Ranges, fryers, hoods, walk-in coolers and dish machines are typical restaurant purchases. A hood system tied into the building may be treated as a leasehold improvement rather than movable equipment, which affects how it is financed. Our article on financing kitchen equipment goes through the choices, and the restaurant page covers the wider cash cycle.
Contractor equipment and heavy equipment
How to finance heavy equipment: the same way as other equipment, with closer attention to hours, maintenance records and how much work you have lined up to pay for it. Excavators, skid steers, trailers and service vans are examples. Contractors can finance the machine and use a line of credit for materials, keeping the two needs separate.
Leasing versus owning equipment: the business trade-offs
| Equipment loan | Lease | |
|---|---|---|
| Ownership | Yours from the start | The lessor's, unless you buy it out |
| Upfront cash | A down payment may be required | May be lower at the start |
| End of term | You own it | Hand it back, extend, or buy it out |
| Fits | Long-lived equipment | Equipment that ages or needs upgrading |
Tax treatment differs between loans and leases; ask your accountant which suits your situation before choosing.
Equipment loan length follows useful life
Terms can be tied to the equipment's useful life: shorter for computers and older used items, longer for heavy machinery and vehicles in good condition. Each partner picks the term itself. Ask for the total repaid at each term offered, not only the monthly payment, and use the calculator on this page to compare.
Section 179, depreciation and the tax question
Whether financed equipment can be deducted in the year it is bought is a tax question. The rules on depreciation and expensing change and depend on your situation, so the answer belongs to your tax adviser. What we can say: the financing structure (loan or lease) can change how the purchase is treated, so ask the adviser before you choose, not after.
What a good equipment quote shows
- Make, model, year and serial number (for used equipment)
- Hours or mileage and condition
- Price, delivery, installation and training listed separately
- Warranty terms
- Seller's name and whether they are a dealer or a private party
A quote with all of these gives a partner more to work with at the start of the review.
Payne County, OK trades that use equipment
Payne County, OK had 169 construction employer locations, 44 auto repair and maintenance shops and 30 dentist offices in 2023 (U.S. Census Bureau, County Business Patterns 2023). These trades use equipment such as excavators and trailers, lifts and scan tools, chairs and imaging. See auto repair, plumbing and HVAC, landscaping, dental practices and medical practices. The practice buyer's view is in our dental practice loan article; the Stillwater, OK page and the comparison of all six options round out the picture.
By Orchardpeak Business Funding · Updated