The best equipment financing company for your business is the one that shows you the total cost in dollars, funds the asset you actually need at terms matched to its working life, and puts every fee in writing before you sign. Most of the difference between a good deal and an expensive one is visible in four questions.
The four questions that expose the real price
What is the total repayment in dollars? Rates and factor quotes hide term differences; total dollars out is the only number that compares cleanly across offers.
What is deducted before funding? Documentation and origination fees often come out of the advance, so the money that reaches the supplier is less than the figure quoted.
What happens at the end of the term? Some agreements end in ownership, some in a balloon payment, some in a purchase option. The same monthly payment can mean very different totals depending on the answer.
Is there a broker fee? In this market, often yes and often undisclosed until late. We charge none — and wherever you are quoted, the question is worth asking out loud.
Red flags worth walking away from
A quote that will not be put in writing. Pricing that changes after you commit. Pressure to sign before the supplier invoice is even final. Fees named only after approval. None of these get better after you sign.
Also be wary of terms much longer than the equipment's useful life — paying for a machine two years after it stops earning is how a cheap monthly payment becomes an expensive deal.
What a good agreement looks like
Up to 100% of the equipment cost, new or used, dealer or private sale. Terms matched to the asset's working life. Soft costs — delivery, installation — included where it makes sense. The total cost stated in dollars, the schedule stated plainly, and an answer inside about a week, since the asset itself secures the deal.
That is what our own equipment financing is built to be, and it is the standard any quote you receive should be held to.
When financing beats paying cash
If the equipment earns from the day it is installed, financing lets it pay for itself out of the revenue it produces while your cash stays available for payroll and inventory — the costs that cannot be financed. Paying cash makes most sense when the purchase is small relative to your reserves, or when nothing about it produces revenue.
Read next: Equipment financing · Funding without collateral · What funding costs
Checking what you qualify for takes about 60 seconds, uses a soft credit pull only, and costs nothing. Start an application or request a callback if you would rather talk it through.