One of the most common questions business owners ask when exploring equipment financing is simply: what equipment can actually be financed or leased? The short answer is almost anything tangible your business needs to operate - from the obvious (trucks, forklifts, CNC machines) to the surprising (point-of-sale systems, office furniture, even software). If it has a useful life of more than 12 months and your business needs it to generate revenue, there is a strong chance it can be financed or leased.
Understanding the full scope of what qualifies helps business owners make smarter capital decisions - preserving cash flow, protecting credit lines, and acquiring the tools needed for growth without draining operating reserves. This guide covers every major equipment category, how financing works for each, and how Crestmont Capital helps businesses across the country put the right equipment to work quickly.
In This Article
Equipment financing is a loan specifically used to purchase business equipment. The equipment itself serves as collateral, which typically means lower interest rates and less stringent credit requirements than general business loans. You own the equipment at the end of the loan term.
Equipment leasing, by contrast, allows you to use equipment for a set period while making regular payments - similar to renting. At lease end, you typically have the option to purchase, renew, or return the equipment. Leasing generally requires lower upfront costs and can help businesses stay current with fast-evolving technology.
Key Principle: If the asset has a useful life of more than 12 months and your business uses it to generate revenue, it can almost certainly be financed or leased. This includes physical equipment, vehicles, technology, and even some software systems.
Both financing and leasing fall under the broader category of equipment financing, and the two options serve different strategic purposes. Choosing between them depends on your cash flow needs, how quickly the equipment depreciates, and whether you want to own the asset at the end of the term.
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Apply Now →Commercial vehicles represent one of the most commonly financed equipment categories. Virtually every type of business vehicle qualifies for financing or leasing, from small delivery vans to heavy semi-trucks.
Types of vehicles commonly financed or leased:
Transportation companies frequently use commercial truck financing to expand their fleet without tying up working capital. Leasing is particularly popular for fleets where vehicles need to be upgraded regularly to meet fuel efficiency standards or emissions regulations.
By the Numbers
Equipment Financing - Key Statistics
80%
Of U.S. businesses use some form of equipment financing
$1T+
In equipment financed or leased annually in the U.S.
2-5 Days
Typical approval timeline with Crestmont Capital
$5K+
Minimum equipment value typically eligible for financing
The construction industry relies heavily on equipment financing because the cost of heavy machinery is substantial and the equipment depreciates quickly with use. Nearly all construction equipment qualifies, including:
Many construction contractors prefer leasing for large equipment to avoid carrying the asset as a long-term liability and to ensure they always have access to current-model machinery. Construction equipment financing can be structured with seasonal payment options that align with cash flow patterns common in the industry.
Pro Tip: For construction businesses, used equipment can often be financed just as easily as new equipment. Lenders evaluate the asset's remaining useful life and resale value - not just whether it came from a dealer showroom.
Medical practices, dental offices, veterinary clinics, and rehabilitation centers routinely finance specialized equipment. The high cost of diagnostic and treatment technology makes financing almost a necessity for independent healthcare providers.
Medical equipment commonly financed or leased includes:
Healthcare equipment financing is particularly well-suited to leasing because medical technology evolves rapidly. A practice that leases rather than purchases can upgrade to newer diagnostic equipment at the end of the lease term without the burden of disposing of outdated assets. Explore medical equipment financing options from Crestmont Capital.
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Start Your Application →The restaurant industry has one of the highest equipment needs of any business sector. Commercial kitchen equipment is expensive, subject to heavy use, and needs to meet health and safety codes. Virtually all of it can be financed or leased.
Restaurant equipment commonly financed or leased:
Restaurant owners often use restaurant equipment financing to handle kitchen buildouts, upgrades after a remodel, or equipment replacement after breakdowns. Monthly payment structures help match equipment costs to revenue cycles, which is especially valuable for seasonal food service businesses.
Manufacturing businesses depend on specialized machinery to produce their products. This equipment can be among the most expensive in any industry, making financing essential for most manufacturers - especially growing companies that need to scale capacity.
Manufacturing and industrial equipment commonly financed:
For manufacturers, equipment financing preserves working capital while allowing production capacity to grow. Many manufacturers use structured loan terms that align with the productive lifespan of the machinery - typically five to seven years for most industrial equipment. Learn more about manufacturing equipment financing options.
| Equipment Type | Finance or Lease? | Typical Term | Best For |
|---|---|---|---|
| Commercial Vehicles | Both | 24-72 months | Fleet operators, transporters |
| Heavy Construction | Both | 36-84 months | Contractors, developers |
| Medical Equipment | Lease preferred | 36-60 months | Clinics, hospitals, practices |
| Restaurant Equipment | Finance preferred | 24-60 months | Restaurants, cafes, food trucks |
| Technology/IT | Lease preferred | 24-48 months | All businesses with tech needs |
| Manufacturing/Industrial | Finance preferred | 48-84 months | Manufacturers, fabricators |
| Agricultural Equipment | Both | 36-84 months | Farms, agribusinesses |
Technology equipment is one of the fastest-growing categories in equipment financing. Because IT assets depreciate quickly and need to be upgraded frequently, leasing is especially popular. Almost any business technology can be financed or leased.
Technology and office equipment commonly financed or leased:
Companies that lease technology equipment can refresh their systems every two to four years, staying current without large capital expenditures. For office environments, financing can cover everything from ergonomic furniture to high-end presentation systems.
Important: Software can sometimes be bundled with hardware financing. If a software system requires specific hardware to run (such as a medical EHR system), the entire package may qualify for equipment financing. Check with your lender about bundled technology packages.
Agriculture is one of the most capital-intensive industries in the United States, and farm equipment financing has a long history. Modern farming operations depend on sophisticated, expensive machinery that makes financing essential for most producers.
Agricultural equipment commonly financed or leased:
Agricultural equipment financing is often structured with seasonal payment options that account for harvest-based income cycles - a critical feature for farms that generate most of their revenue in a few months of the year.
The beauty and wellness industry has seen enormous growth in equipment financing as salon owners, spa operators, and fitness businesses invest in technology and specialized tools. This includes:
Businesses in this sector often benefit from leasing because treatment technology evolves quickly. A medical spa, for example, may want to upgrade its laser systems every three to five years as newer, more effective technology becomes available. Spa equipment financing through Crestmont Capital can be tailored to the specific needs of wellness businesses.
Both financing and leasing give your business access to essential equipment without paying the full purchase price upfront. However, the right choice depends on several factors unique to your situation.
Quick Guide
How Equipment Financing Works - At a Glance
Choose equipment financing (loan) when:
Choose equipment leasing when:
Crestmont Capital is a leading U.S. business lender with expertise in equipment financing and leasing across virtually every industry. Our team understands the specific requirements of different equipment categories and structures financing solutions that work for your business - not just the equipment.
We finance new and used equipment, domestic and imported assets, and work with both established businesses and growing companies that need fast access to capital. Our equipment financing programs are designed to preserve your working capital while giving you access to the tools you need immediately.
Key features of Crestmont Capital equipment financing:
Did You Know? Crestmont Capital is rated the #1 business lender in the United States, with thousands of businesses funded across every industry. Our equipment specialists understand the nuances of different asset classes and can structure financing that matches your equipment's productive life.
Equipment financing is one of the most accessible forms of business financing because the equipment itself serves as collateral. This means qualification requirements are generally less stringent than for unsecured business loans. Most businesses with the following profile qualify:
Businesses with challenged credit can still qualify for equipment financing, particularly when financing equipment with strong resale value. Even companies recovering from difficult periods often find equipment financing more accessible than other loan types because lenders are secured by the asset.
If you have any questions about whether your specific equipment qualifies or whether your business meets the criteria, Crestmont Capital's team can provide a quick, no-obligation assessment. Contact us or apply online to get started.
Scenario 1: Restaurant Chain Expansion
A regional restaurant chain needed to outfit two new locations with complete commercial kitchen packages - ovens, refrigeration, dishwashers, and POS systems. Rather than depleting cash reserves needed for marketing and staffing, they financed $280,000 in equipment over 48 months. Monthly payments fit comfortably within projected revenue from the new locations, and they preserved capital for the grand opening push.
Scenario 2: Medical Practice Upgrade
A physical therapy practice leased a comprehensive package of rehabilitation equipment including treadmills, treatment tables, and ultrasound therapy devices. Because the lease was structured as an operating lease, the payments were entirely expensed rather than capitalized, simplifying the practice's accounting. At the end of the three-year term, they upgraded to newer equipment without having to dispose of the old units.
Scenario 3: Construction Fleet Expansion
A mid-size general contractor won a large commercial project requiring two additional excavators. They financed both units through Crestmont Capital with a 60-month term and seasonal payment structure - paying higher amounts in peak construction months and reduced amounts during winter slowdowns. The financing aligned perfectly with the revenue cycle of the project.
Scenario 4: Manufacturing Upgrade
A metal fabrication shop needed a new CNC machining center to fulfill a large new contract. The $185,000 machine was financed over 72 months, with the monthly payment more than covered by the revenue generated by the new contract. The loan was secured by the equipment, requiring minimal additional documentation and closing in under five days.
Scenario 5: Salon Technology Refresh
A multi-location salon group leased point-of-sale systems, booking software hardware, and treatment chairs across five locations. The lease allowed them to standardize equipment across all locations with a single monthly payment, simplify maintenance through the lessor's service agreements, and plan for a complete equipment refresh at the end of the four-year term.
Scenario 6: Agricultural Equipment for Seasonal Business
A family farm financing a new combine harvester structured the loan with interest-only payments during winter months and principal-plus-interest payments during and after the harvest season. This cash-flow-aware structure made the $350,000 harvester financially manageable without straining the operation during slow revenue periods.
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Apply Now →Almost any tangible business asset with a useful life of more than 12 months can be financed or leased. This includes commercial vehicles, construction equipment, medical devices, restaurant equipment, manufacturing machinery, IT systems, agricultural equipment, and more. The equipment must be used for business purposes and have identifiable resale value for most financing programs.
Yes. Used equipment can be financed through most equipment financing programs. Lenders evaluate the remaining useful life and resale value of the equipment. Equipment that is well-maintained and has documented service history typically qualifies at terms similar to new equipment. Some lenders apply a small premium to used equipment interest rates to account for additional depreciation risk.
Most lenders have a minimum financing amount of $5,000 to $10,000 for equipment loans. Some programs for small equipment or technology bundles may start lower. There is generally no maximum limit for most types of equipment - Crestmont Capital finances equipment packages worth millions of dollars for large commercial projects.
It depends on the equipment type, your financial goals, and your cash flow situation. Financing is generally better for equipment with long useful lives that you want to own and potentially customize. Leasing is often better for technology-dependent equipment that becomes obsolete quickly, when you want lower monthly payments, or when you prefer flexibility to upgrade at the end of the term. A Crestmont Capital specialist can help you determine the best approach for your specific equipment.
With Crestmont Capital, approvals typically take 24-72 hours for standard equipment financing applications. Smaller transactions (under $150,000) can often be approved within 24 hours with minimal documentation. Larger transactions or complex equipment types may require additional review time, but most applications are resolved within two to five business days.
Most equipment financing programs require a credit score of 580 or higher. Scores above 650 typically unlock the best rates and terms. However, because equipment financing is secured by the asset, some programs are available to borrowers with scores below 580, particularly for equipment with strong resale value. Factors beyond credit score - including time in business, revenue, and the equipment type - all influence approval and pricing.
Yes, in many cases. When software is bundled with hardware as part of an integrated system (such as a medical EHR system with its supporting servers and workstations), the entire package can often be financed together. Standalone software subscriptions are generally not eligible for equipment financing, but software licenses tied to specific hardware deployments may qualify under certain programs.
Yes. Many lenders, including Crestmont Capital, offer seasonal payment structures for businesses with cyclical revenue patterns. This can include interest-only payments during slow seasons, skip-payment options during designated months, or graduated payment structures where payments increase as revenue grows. Seasonal payment options are common for agricultural businesses, construction companies, and other industries with defined busy and slow periods.
At the end of most equipment leases, you typically have three options: purchase the equipment at the residual value specified in the lease agreement, renew the lease for a new term (often at a lower payment since the residual has been partially established), or return the equipment and upgrade to a newer model. The residual purchase price is set in the original lease terms, so you know upfront what your buyout option will be.
Yes, though startup equipment financing often has different requirements than financing for established businesses. Startups may need to provide stronger personal credit, a down payment, or additional documentation such as a business plan and revenue projections. Equipment with high resale value - like vehicles, medical equipment, or construction machinery - is generally more accessible for startups because the asset provides strong collateral protection for the lender.
Equipment loans appear as both an asset and a liability on your balance sheet. The equipment's value is recorded as an asset, while the outstanding loan balance is recorded as a liability. This is known as a capital lease treatment. Operating leases, depending on accounting standards, may or may not appear on the balance sheet. Consult your accountant to understand the specific impact on your financial statements, as lease accounting rules have evolved under ASC 842.
Yes, in many cases. Private-party equipment purchases can be financed, though the process may require additional documentation such as a bill of sale, proof of ownership, and an equipment inspection or appraisal. Not all lenders accommodate private-party purchases, so it is worth confirming with your financing provider before pursuing this option. Crestmont Capital works with businesses on private-party equipment acquisitions on a case-by-case basis.
For most equipment financing applications, you will need basic business information (name, address, EIN), recent bank statements (typically three to six months), a description of the equipment being financed, and a quote or invoice from the vendor. Larger transactions may also require business financial statements and tax returns. Applications under $150,000 often require minimal documentation and can be approved based on credit and bank statement review alone.
Yes. Equipment financing can be structured as a blanket loan covering multiple pieces of equipment purchased at the same time. This is common for restaurant buildouts, medical practice setups, and construction fleet acquisitions. Bundling multiple assets under one loan simplifies administration with a single monthly payment and one loan file. Equipment packages can also be financed in phases as additional items are needed.
Equipment financing is typically easier to qualify for than an unsecured business loan because the equipment serves as collateral. This also generally results in lower interest rates. Equipment financing is purpose-specific - funds go directly to the equipment vendor - while general business loans can be used for any purpose. For businesses that need equipment, a dedicated equipment loan is almost always a better option than a general term loan because of the lower rates, longer terms, and simpler qualification criteria.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.