Equipment Financing
Finance the equipment, vehicles, technology, and machinery your business needs, without depleting cash reserves or limiting growth.
Acquire what you need to compete, preserve capital for what you need to operate.
The problem
Your business needs equipment to operate and compete. New machinery improves efficiency. Updated technology keeps you competitive. Additional vehicles expand capacity. But there's a capital problem:
Equipment purchases require significant upfront capital, $50K, $200K, $500K or more. That capital could fund operations, payroll, inventory, or growth initiatives. But without the equipment, you can't perform the work, serve customers efficiently, or compete effectively.
Pay cash and deplete working capital. Finance through traditional loans and face lengthy approval processes. Or worse, delay the purchase and lose competitive advantage while competitors modernize.
The result
You're forced to choose between acquiring necessary equipment and maintaining operational flexibility. Growth opportunities pass by because capital is tied up in equipment, or efficiency suffers because you can't afford to upgrade.
The solution
Equipment financing lets you acquire the equipment you need while preserving working capital for operations. Spread costs over time, align payments with the revenue the equipment produces, and maintain financial flexibility, without the cash flow squeeze.
The mechanics
Equipment financing provides capital specifically for acquiring business equipment, machinery, vehicles, and technology. Instead of large upfront purchases that deplete working capital, you finance equipment over time with payments aligned to its useful life and the revenue it produces.
You purchase equipment with a loan secured by the equipment itself. You own the equipment from day one. Make fixed monthly payments over 2-7 years, depending on equipment type. At loan end, you own the equipment outright with no additional payments. Best for equipment you'll use long-term (5+ years), assets that hold value, situations where ownership matters, and taking advantage of depreciation and Section 179 deductions. Typical terms: 2-7 years, fixed payments, you own immediately.
You already own equipment with equity locked inside. Refinancing releases that trapped equity as working capital while you keep using the equipment. We value equipment on the revenue it produces, not its liquidation value. Best for businesses with paid-off or lightly financed equipment and a clear use for the released capital: operations, growth, or new contracts.
Many businesses combine both. An ABL facility places equipment alongside receivables and inventory in one collateral base. Or pair equipment financing for long-term assets (machinery, vehicles, technology) with working capital financing for operations, inventory, and receivables.
Why it works
Don't tie up $100K, $300K, or $500K+ in equipment purchases. Keep that capital available for payroll, inventory, vendor payments, and growth opportunities. Equipment financing preserves your financial flexibility.
Equipment generates revenue over its useful life. Financing spreads costs across that period, matching payments to the value the equipment creates. You're not depleting capital today for benefits that accrue over years.
Equipment financing often provides tax advantages. Section 179 deductions, bonus depreciation, or standard depreciation schedules. Consult your tax advisor, but equipment financing can reduce your tax burden while acquiring necessary assets.
Finance technology on shorter terms matched to its useful life. When the term ends, you own the equipment and upgrade on your schedule instead of carrying payments on outdated assets.
Equipment-secured financing often has faster approval than general business loans. Since the equipment itself is collateral, lenders are more comfortable with quicker decisions, typically 3-7 business days to approval.
Fit
Equipment financing works across all industries and business sizes. Here's who typically benefits:
Need Equipment to Operate — Your business requires equipment, vehicles, technology, or machinery to function or compete
Want to Preserve Capital — You prefer keeping working capital available rather than making large cash purchases
Growing or Scaling — Adding capacity, expanding operations, or improving efficiency through equipment acquisition
Technology-Dependent — Need to stay current with technology, with financing terms matched to its short useful life
Seasonal or Project-Based — Need equipment for periods but want payments spread over useful life
Tax-Conscious — Want to take advantage of depreciation and Section 179 deductions
Equipment has very short useful life (under 2 years)
You have unlimited capital and prefer to own outright immediately
Equipment is highly specialized with no resale value (makes financing difficult)
Your credit situation makes approval unlikely (we'll be honest about feasibility)
Manufacturing: Production machinery, CNC equipment, robotics, fabrication equipment. Essential equipment financing for manufacturers across all sectors. Construction: Heavy equipment, vehicles, specialty equipment. Financing built for construction company equipment needs. Transportation & Logistics: Trucks, trailers, forklifts, material handling. Fleet and logistics equipment financing.
Tell us a little about the equipment you need and we'll come back with real numbers for payment, term, and timeline.
Same-day preliminary answer
Run your numbers
Compare financing, leasing, and paying cash for a piece of equipment.
Equipment Financing CalculatorThe alternatives
| Equipment Financing | Equipment Leasing | |
|---|---|---|
| Ownership | Own immediately | Lessor owns. You have end-of-term options |
| Monthly Payments | Fixed, typically higher | Fixed, typically lower |
| End of Term | You own it (no additional payment) | Return, purchase at FMV, or upgrade |
| Tax Treatment | Depreciation + Section 179 deductions | Lease payments as expense |
| Best For | Long-term use equipment | Equipment you'll want to upgrade |
| Balance Sheet | Asset + liability | Off-balance sheet (operating lease) |
| Obsolescence Risk | You bear risk | Lessor bears risk |
| Customization | Full control (you own it) | Limited (you don't own it) |
Equipment with a long useful life (7+ years). Assets that hold value or appreciate. You want ownership and control. You want maximum tax depreciation benefits. Equipment unlikely to become obsolete. Sanctorum provides equipment financing across all of these situations.
Leasing through an equipment lessor fits technology that becomes obsolete quickly, equipment you'll upgrade regularly, and situations where lower monthly payments and term-end flexibility matter most. Sanctorum provides financing, not leases. If leasing fits your situation better, we'll say so.
Getting started
Identify the equipment you need, get quotes from vendors/manufacturers, and understand equipment specifications, costs, and delivery timelines.
Provide business information, equipment details (make, model, cost, vendor), and intended use. Much simpler than general business loan applications since equipment is the collateral.
We review your business credit, cash flow, and the equipment itself (type, resale value, useful life). Equipment-secured financing often has more flexible approval criteria than unsecured loans.
If approved, we provide clear terms showing monthly payment, term length, and interest rate. You'll see exactly what it costs.
We pay the vendor/manufacturer directly (or reimburse you if already purchased). Equipment is delivered. You start using it immediately while making manageable monthly payments.
Typical timeline: 5-10 business days from application to equipment delivery (depending on equipment availability)
In depth
If your business needs it to operate, you can likely finance it. Here are common equipment types:
CNC machines, lathes, mills, injection molding equipment, stamping presses, assembly lines, robotics, welding equipment, fabrication tools, quality control equipment.
Excavators, bulldozers, loaders, backhoes, cranes, dump trucks, skid steers, compactors, pavers, graders, aerial lifts, scaffolding.
Delivery trucks, vans, box trucks, semi-trucks, trailers, specialty vehicles, fleet vehicles, forklifts, pallet jacks, material handling equipment.
Servers, networking equipment, computers, workstations, software (in some cases), telecommunications equipment, security systems, point-of-sale systems.
Diagnostic equipment, imaging machines (MRI, CT, X-ray), dental equipment, surgical equipment, patient monitoring systems, laboratory equipment.
Commercial ovens, refrigeration, freezers, fryers, dishwashers, prep tables, cooking equipment, HVAC systems, point-of-sale systems.
Furniture, copiers, printers, phone systems, conference room equipment, security systems, HVAC, facility improvements.
Tractors, combines, planters, harvesters, irrigation systems, grain handling equipment, livestock equipment, specialty farming equipment.
In depth
Many businesses benefit from both equipment financing AND working capital financing:
For long-term assets (machinery, vehicles, technology)
For operations, inventory, receivables
Preserve maximum capital flexibility by using the right financing tool for each need. Finance equipment over its useful life. Finance working capital with revolving facilities. Don't deplete cash for either.
Equipment financing for CNC machines + invoice factoring for customer receivables
Vehicle financing for delivery trucks + ABL for inventory and receivables
Equipment financing for excavators + government contract financing for mobilization
Technology financing for computers/servers + AR financing for client invoices
Maximum capital efficiency. Each asset financed appropriately for its type and use.
Common questions
Financing is a loan. You own the equipment immediately and pay it off over time. Leasing is a rental. You use equipment owned by the lessor and have options at term end (return, purchase, upgrade). Financing typically has higher payments but you own it outright at the end. Leasing has lower payments but you don't automatically own the equipment. Sanctorum provides financing, not leases.
Both. We finance new and used equipment. Used equipment financing may have shorter terms (due to remaining useful life) and may require equipment appraisal, but many businesses successfully finance quality used equipment to save costs.
Typically 10-20% down for equipment financing, though some situations qualify for $0 down or first/last payment structures. Down payment requirements vary based on equipment type, your credit strength, and term length. We'll explain options during approval.
Equipment financing terms typically range from 2-7 years depending on equipment's useful life. Heavy machinery often runs 7 years. Technology runs 2-3 years. Vehicles often 3-5 years. We match terms to how long the equipment will productively serve your business.
Most equipment financing allows early payoff, though some agreements have prepayment penalties. We'll disclose any prepayment terms upfront. Many businesses pay off equipment early when cash flow allows.
With a lease from an equipment lessor, you typically have three options: (1) Return the equipment, (2) Purchase at fair market value determined at lease end, or (3) Upgrade to newer equipment with a new lease. Sanctorum provides financing rather than leases. At the end of a Sanctorum term, you own the equipment outright.
Equipment financing often qualifies for Section 179 deductions (up to $1M+ per year for qualifying equipment), bonus depreciation, or standard depreciation schedules. If you lease through a lessor instead, lease payments may be fully deductible as business expenses. Consult your tax advisor for specific benefits. We're not tax professionals but can direct you to resources.
Yes. Many businesses finance entire equipment packages: multiple vehicles, complete production lines, full technology refresh, etc. We can structure single financing arrangements for multiple equipment pieces purchased simultaneously.
With financing, you own it. You bear maintenance and obsolescence risk, but you can sell or trade the equipment. With a lease from a lessor, the lessor bears obsolescence risk, and maintenance responsibility depends on the lease type. We'll explain these tradeoffs before you commit.
Equipment financing creates an asset (the equipment) and a liability (the loan) on your balance sheet. It affects debt ratios but shows productive asset acquisition. Leases from a lessor follow different accounting treatment (operating or capital lease). We'll explain the accounting treatment for your financing structure.
In practice
Manufacturing Upgrade
Transportation Fleet Expansion
Medical Practice Technology
Restaurant Buildout
If you need working capital for operations while financing equipment, factoring provides immediate cash from outstanding invoices. Often used alongside equipment financing.
Learn moreIf you need financing against multiple assets (receivables, inventory, AND equipment), ABL provides a unified facility. Good for larger companies with diverse assets.
Learn moreIf you need to fulfill large orders but lack capital, PO financing funds production. Often combined with equipment financing to build a complete capital structure.
Learn moreWhether you're upgrading machinery, expanding your fleet, investing in technology, or equipping a new location, equipment financing preserves your working capital while giving you the revenue-producing assets you need to compete and grow.
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