Loanplaced equipment financing
Equipment financing is often the cheapest form of small-business debt available — the equipment itself is the collateral, terms match the useful life of the asset, and Section 179 depreciation frequently makes it tax-efficient. Loanplaced places equipment financing across manufacturing, medical, restaurant, transport, and technology.
How equipment financing works
A lender finances 80-100% of the equipment purchase, with the equipment itself pledged as collateral. Loan term matches the equipment's useful life — typically 3-7 years for most business equipment, longer for heavy machinery or vehicles.
Loanplaced equipment financing parameters (2026)
| Parameter | Range |
|---|---|
| Loan amount | $10,000 – $2,000,000 |
| APR range | 7.49% – 15.99% |
| Down payment | 0-20% (0% common for strong credit) |
| Term | 36-84 months typical |
| Prepayment penalty | Rare; disclosed upfront |
| Approval time | 1-5 business days |
| Funding time | 3-10 business days from approval |
| Minimum time in business | Typically 2 years (startups considered case-by-case) |
| Minimum FICO (owner) | Typically 650+ |
| Personal guarantee | Required from 20%+ owners |
What Loanplaced equipment financing covers
- Manufacturing: CNC machines, injection molders, presses, packaging lines
- Medical/dental: Imaging equipment, dental chairs, surgical tools, lab equipment
- Restaurant/hospitality: Commercial kitchen equipment, HVAC, POS systems, refrigeration
- Transport/logistics: Delivery vehicles, box trucks, trailers, forklifts
- Construction: Excavators, skid steers, dump trucks, boom lifts
- Agriculture: Tractors, harvesters, irrigation systems
- Technology: Servers, computer fleets, specialized software with hardware
- Fitness/wellness: Commercial gym equipment, spa equipment
- Automotive: Lifts, alignment machines, diagnostic tools
- Printing/graphics: Digital presses, wide-format printers, finishing equipment
Section 179 tax treatment (why this matters)
Section 179 of the IRS code lets businesses deduct the full purchase price of qualifying equipment in the year it's placed in service — rather than depreciating it over 5-7 years. For 2026, the deduction limit is $1.16 million with a spending cap of $2.89 million (subject to change; verify with your CPA).
What this means practically: financing $100K in equipment in 2026 could produce a $100K tax deduction that same year, even though you've only made a few months of loan payments. For a business paying 24% effective tax rate, that's $24K in tax savings up front — often more than the first year's interest cost.
Equipment financing vs equipment leasing
| Feature | Financing (own) | Leasing (rent) |
|---|---|---|
| Ownership at end | You own it | Return, buy at residual, or renew |
| Down payment | 0-20% | Often $0 |
| Monthly cost | Higher (principal + interest) | Lower (usage cost only) |
| Tax treatment | Section 179 or MACRS depreciation + interest deduction | Full lease payment deductible as operating expense |
| Best for | Long-life equipment, low tech obsolescence | Fast-obsolescing tech, short-term needs |
Rule of thumb: finance equipment you'll use 5+ years, lease equipment that will be obsolete in 3 years.
The Loanplaced equipment financing process
- Vendor invoice or quote — Loanplaced needs to know exactly what you're buying
- Application — 20 minutes; standard business financials
- Soft-pull preview — see estimated terms without a credit hit
- Formal underwriting — 1-5 days; includes equipment appraisal for used items
- Approval — signed loan documents
- Funding to vendor — Loanplaced typically pays the vendor directly at delivery
What Loanplaced needs
- Vendor invoice or purchase order
- Two years of business tax returns
- Personal tax returns (for owners of 20%+)
- YTD interim P&L
- Business bank statements (3-6 months)
- Debt schedule
- Government ID for each owner