The best argument for equipment financing is that the thing you are buying should help pay for itself. A truck hauls loads that bring in revenue. An oven bakes product that sells. A scanner, a lift, a press or a fleet of laptops lets people do work they could not do before. When the asset earns money, it makes sense to spread its cost over the period it earns. fundivi offers equipment financing from $15K to $3M with decisions typically in 24 to 72 hours, and this guide explains how it works, what to watch for, and how to choose the right structure.
If your business has been open for 6 months or more, brings in $30K or more in monthly revenue, and the owner has a personal credit score of 550 or higher, you can see what you qualify for in about 2 minutes.
How Equipment Financing Differs From Other Loans
With most business loans, the lender relies on your cash flow and your credit. Equipment financing adds a second source of comfort: the equipment itself. Because the asset has resale value and can support the loan, lenders are often more comfortable, which can mean stronger terms and a quicker decision than an unsecured product of similar size.
The loan is typically structured around the purchase. The money goes toward the equipment, and the term is set with the asset's useful life in mind, so you are not still paying for a machine that wore out years ago. This is why equipment financing is usually a better match for a major purchase than working capital, which is built for operating needs.
How the Equipment Affects the Decision
Two businesses with identical finances can receive different terms depending on what they are buying. Lenders look at a few features of the asset.
Resale value. Equipment that holds its value, such as common construction machinery or commercial vehicles, is easier to finance than highly specialized or fast depreciating items, because the lender can recover more if something goes wrong.
Useful life. Equipment that will last a decade supports a longer term than something that is outdated in three years, such as certain technology.
Condition and age. New equipment generally has a clearer value than used, but used equipment can often be financed too, particularly if it is in good condition and the price is fair.
Purpose. Equipment that directly generates revenue is easier to justify than equipment that mostly reduces costs or convenience, though both can qualify.
New Versus Used
Used equipment can be an excellent value, particularly for businesses that need capacity without the premium of a new purchase. A used delivery van, a refurbished commercial oven or a pre owned excavator may cost a fraction of a new one. The tradeoffs are shorter remaining life, possible maintenance costs and sometimes a shorter financing term.
New equipment typically offers a warranty, current technology and predictable performance, but it costs more and loses a good portion of its value quickly in the first years. The right choice depends on how heavily the machine will be used, how quickly the technology changes in your field, and how much you can afford in maintenance and downtime.
Whichever you choose, get the equipment inspected or appraised if it is used, and make sure the seller and price are documented. A clean purchase record makes the financing smoother.
Buying With a Loan or Leasing
Owners often ask whether to finance a purchase or lease the equipment. The distinction is ownership. With financing, you own the equipment, you can build equity in it, and when the loan ends it is yours. With a lease, you pay for the use of the equipment for a period, and at the end you may return it, renew or buy it, depending on the lease.
Leasing can make sense when technology changes quickly and you want to upgrade regularly, or when you only need the equipment for a limited time. Financing tends to make sense when the equipment will last, you plan to keep it, and ownership brings value, such as depreciation benefits and the ability to sell it later. Because tax treatment varies, check with your accountant about how each option affects your situation.
Looking at Total Cost of Ownership
The price tag is only part of the cost. Before you finance, add up everything the equipment will cost over its life.
Delivery, installation and setup. Many machines need to be moved, wired, calibrated or certified before they can be used.
Training. If staff need to learn new equipment, factor in the time and any fees.
Maintenance and repairs. Older equipment and heavy use tend to cost more here, and service contracts can add predictable monthly costs.
Insurance. Valuable equipment generally needs coverage, and lenders may require it.
Fuel, power or consumables. Running costs differ widely between models, and a more efficient machine can pay back its higher price.
Downtime. A machine that breaks down often costs you in lost work, not only repairs.
Putting numbers on all of these gives a truer picture than the purchase price. The cost calculator can help you see the financing side of that total.
What fundivi Looks At
fundivi's underwriting engine reviews your business bank activity along with details of the purchase. It looks at how steadily revenue arrives, how your balances behave and how the business has trended. The equipment adds support to the deal, but the business still needs to show it can make the payments.
The baseline requirements are 6 months in business, an active business checking account, $30K or more in monthly revenue and a personal FICO score of 550 or higher. Meeting them does not guarantee approval, but it puts you in range.
To keep the process smooth, have the details ready: a quote or invoice from the vendor that names the equipment, the price and the seller, along with your recent bank statements. For used equipment, any inspection or appraisal helps. For larger purchases, expect to provide more.
Financing More Than the Machine
A common question is whether related costs can be included. Installation, delivery and sometimes software that runs the equipment are often part of the true cost of getting it operational. Ask early whether these can be bundled into the financing, since doing so can preserve your cash for operations. Terms vary by deal, so confirm how your offer treats them.
Common Reasons an Application Is Declined
Understanding these helps you avoid them. The asset may be unusual or hard to value, such as highly customized equipment. The price may be well above market, suggesting the deal is not at arm's length. The business may not have enough cash flow to support the payment on top of existing obligations. The bank statements may show frequent overdrafts. Or the paperwork may be incomplete or inconsistent.
If the problem is the asset, a larger down payment or a different financing structure may help. If it is cash flow, a smaller purchase or a longer term might bring the payment into range.
Equipment Financing Compared With Alternatives
Against working capital: working capital is faster and more flexible, but it is built for operating needs. Using it for a machine can strain cash flow, and you give up the benefit of a term matched to the asset.
Against a term loan: a term loan is unsecured by the asset and can fund broader projects. If you are buying equipment as part of a larger expansion, you might use both: equipment financing for the machine and a term loan for the build out around it.
Against paying cash: paying from reserves avoids interest but can leave you thin. Many owners prefer to finance and keep their cash for the unexpected, particularly when the equipment generates revenue that covers the payment.
A Worked Example
A landscaping company brings in $70K a month and wants to buy two dump trucks and a skid steer for $210,000. The trucks and skid steer will let it take on larger commercial contracts that it currently turns down.
The owner gets vendor quotes, confirms the equipment is the newer model with good resale value, and works out the payment. The new contracts are expected to add roughly $25K a month in revenue, comfortably covering the payment. Financing the equipment preserves the company's cash for payroll and materials during the ramp up. The owner also decides to finance the delivery and an extended warranty alongside the main purchase, so the full cost of getting the equipment operational is spread over the same term.
The plan works because the equipment directly produces the revenue that pays for it. Had the owner been buying equipment with no clear revenue connection, the case would have been weaker and the owner would have been wise to think harder about the purchase.
Getting Started
The how it works page walks through each stage of the process. If you are not sure which product fits, the funding product matcher asks a few questions and points you toward a likely match, or you can book a consultation for a larger or more complex purchase. To learn about the company, visit the about page, and for further guides see our resources. fundivi is a hybrid lender that matches you first against its own capital and can bring in vetted partners when another structure fits.
Timing a Purchase Well
When you buy can matter as much as what you buy. Equipment often has seasonal pricing, and dealers may offer better terms at the end of a quarter or year. At the same time, buying too early ties up money before the equipment can earn, and buying too late can cost you contracts you could have won.
A sensible approach is to line up financing before you need the equipment, not after. If you know the purchase is coming, a prequalification gives you a clear sense of what is available, so you can negotiate with the seller from a position of strength. It also means that when the right machine appears, you can move within days instead of weeks.
Think too about the wider plan. If you are expanding your fleet or kitchen over several years, consider how each purchase fits with the next. Keeping your total obligations manageable matters, and a lender can review them together. A conversation about the whole sequence is often more useful than financing each piece in isolation.
Finally, keep records. Save invoices, serial numbers, insurance documents and maintenance logs. They protect you, support any future sale or refinance of the equipment, and make your next application easier.
Protecting the Asset After You Buy
Once the equipment arrives, the financing is only half the story. Keep it insured at its full replacement value for as long as you owe on it, follow the manufacturer's maintenance schedule, and keep records of every service visit. Well maintained equipment lasts longer, holds more resale value and breaks down less often, which protects the revenue that pays the loan. Train your staff properly, since misuse is one of the most common and most avoidable causes of damage.
Frequently Asked Questions
Can I finance used equipment?
Often yes, particularly if the equipment is in good condition and the price is fair. Used equipment may carry a shorter term.
How fast does equipment financing close?
fundivi equipment financing decisions typically take 24 to 72 hours, depending on how complete your file is and the details of the purchase.
Does the equipment count as collateral?
Equipment financing is typically supported by the equipment itself, which is why terms can be stronger than on unsecured products. Review the terms of your agreement for specifics.
What credit score do I need?
fundivi looks for a personal FICO score of 550 or higher, along with 6 months in business, an active business checking account and $30K or more in monthly revenue.
Can I finance installation and delivery too?
Often these costs can be included, depending on the deal. Ask early so they can be built into the request.
How much can I finance?
fundivi equipment financing runs from $15K to $3M, based on the purchase, your revenue and your cash flow.
Next Steps
If the equipment will earn its keep, financing it can be the cleanest way to buy. Take the 2 minute application to see what your business qualifies for, with decisions typically in 24 to 72 hours.
