Any tangible asset, other than property or a building, used in the operation of a business may be considered equipment. For example, desks, computers, a pizza oven, a dental X-Ray machine, and construction equipment are all considered business equipment and can be either purchased with an equipment loan, or leased.
Because the equipment you are purchasing is considered collateral, this is a financing option that allows a small business owner to finance the purchase of equipment even if they don’t have other assets that could be used as collateral.
- Relatively low APR
- Predictable monthly finance payments
- Helps build business credit
- Equipment serves as strong collateral