Equipment loan vs lease
Loans give you ownership after payoff — good for assets with long life and resale value. Leases may offer lower monthly payments and easier upgrades; at term-end you return, renew, or buy out.
What lenders review
Time in business and personal credit of guarantors Equipment type, age, and resale market Down payment (often 10%–20%) Cash flow or existing receivables
- Time in business and personal credit of guarantors
Pairing with factoring
Many operators use invoice factoring for working capital and a separate equipment line for capex — keeping payroll and materials funded while financing the truck or machine that generates the invoices.
Tax considerations
Section 179 and bonus depreciation rules change with federal tax law. Consult your CPA on whether to expense or capitalize — we fund transactions; we don't provide tax advice.
Questions about funding operations and equipment? Talk to AFG — we'll map the right stack.