Benefits of Equipment Financing

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.

It is essential 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. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Application-only for hard collateral up to $500,000
Application-only for soft collateral up to $350,000
If approved, same-day funding is available
Easy online application
One-hour approval decisions during regular business hours
Flexible terms available
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 be responsible for predictable monthly payments over a specific term length.

Easy approvals and fast funding.

With Balboa Capital, you can apply for equipment financing online and get a credit decision promptly during our regular business hours. We have several term options for you to choose from. If your application is approved and you decide to move forward, we may be able to provide you with funding on the same day.

Potential tax deductions.

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

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 breaking the bank or using up your credit line. In addition, 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 new equipment can give your company a competitive edge.

Better balance sheets.

Helping you keep an attractive balance sheet is another advantage of equipment financing. That is because your monthly equipment financing payments are viewed as a business expense instead of a liability or long-term debt. Having little or no debt on your financial statements is a huge benefit that may improve your PAYDEX® Score.

Balboa Capital, a Division of Ameris Bank, is not affiliated with nor endorses PAYDEX.