Equipment Financing

 Business Age: 1+ Year in Operation
Annual Revenue: $500,000+
Credit Score: 700+ FICO

 What Is Equipment Financing? 

 Equipment financing allows businesses to obtain necessary assets, such as vehicles, machinery, and office equipment, without paying the full cost upfront. It can take the form of a loan or lease, with the equipment itself often serving as collateral. This approach is ideal for industries like:

 Construction
Specialty Trades
Wholesale & Distribution
Manufacturing
Restaurant

Retail
Hospitality
Software & Technology
Healthcare & Medical and More

 Heavy equipment loans are particularly useful for high-value purchases, offering strategic flexibility. 

 How Does Equipment Financing Work?
 

 The process is straightforward: 

 Select Your Equipment: Identify what you need and determine its cost.

Apply and Get Approved: 

Submit your application, review your approval status, and understand the terms—interest rates, repayment schedule, and fees.
Complete Purchase: Sign the agreement. The lender typically pays you to purchase the equipment, or the lender may pay the vendor directly when you take possession.
Repay Over Time: Make scheduled payments until the loan or lease is fully paid off.

Partnering with RENGVO streamlines this process by connecting you with a network of lenders and providing expert advice to ensure you select the best financing solution.

Equipment Financing: Lease vs. Loan

You have two main options:

1.  Leasing: Similar to renting, you pay regularly to use the equipment but do not own it at the end of the term. Ideal for frequent upgrades or avoiding ownership risks.

2. Loan: Borrow funds to purchase the equipment outright, transferring ownership once paid off. This option is suitable for long-term use and building equity.
 

 How Long Can You Finance Equipment?

 Typically, financing terms range from 1 to 10 years, with some lenders offering extended periods up to 15 years for specific assets. The term generally aligns with the equipment's expected useful life. Longer terms mean lower monthly payments but potentially higher total costs, while shorter terms involve higher payments but less interest paid overall.
 

 Benefits of Equipment Financing

Maintain Cash Flow: Spread out payments to avoid large upfront costs, freeing capital for other priorities.
Quick Acquisition: Obtain equipment immediately to stay competitive and start generating revenue faster.
Tax Benefits: Lease payments may be fully deductible, and loans can be depreciated over time. Consult your tax professional for specifics.
Easier Lifecycle Management: Leasing makes it simple to upgrade to newer models, ensuring access to the latest technology without disposal worries.


 

 Frequently Asked Questions

Is it difficult to qualify for equipment financing?
Not at all. With RENGVO, approval is typically easier than with traditional lenders. Requirements often include a credit score of 600 or higher, at least one year in business, and $500,000+ in annual revenue. 

 Can I finance used equipment?
Yes, used equipment can usually be financed for 1–5 years, depending on the asset and lender policies.

How should I decide between leasing and buying?
Consider your long-term needs, cash flow, and upgrade plans. Leasing offers flexibility and ease of upgrades, while loans build equity and may be more cost-effective over time.

What’s the typical loan term?
Most equipment loans last between 3 to 5 years, with some lenders offering options to pay off sooner with prepayment discounts.

1.  Documentation:  

• RENGVO:  Minimal—quick application
• Traditional Banks:  2–3 years of tax returns and financials   
• Direct Lenders:  3–6 months bank statements, 1-year tax returns & financials

2. Application Process:

•  Rengvo:  One-page, e-sign, fast. 
•  Traditional Banks:  Lengthy, paperwork-heavy.
•  Direct Lenders:  Multi-page forms.

3.  Lender Access:

• RENGVO:  Over 77 lenders 
•  Traditional Banks:  Usually One
• Direct Lenders:  Usually one

4. Customer Support 

•  RENGVO:  Dedicated business advisors 
•  Traditional Banks:  Processor-driven
•  Direct Lenders:  Automated approval 

 Ready to Grow?
Apply today with RENGVO and get the equipment financing you need to take your business to the next level.