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WRITTEN & RESEARCHED BY

Jon Millikan

Expert Analyst & Contributor

Funding Your Business: Best Equipment Financing Companies for Small Businesses

Updated: Sep 29, 2023


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As a small business owner, it's important to have the right equipment to run your business efficiently. However, purchasing equipment outright can be a costly endeavor that can strain your finances. Equipment financing is a valuable tool for small businesses that need to acquire the necessary equipment while maintaining their cash flow. In this article, we'll explore the different types of equipment financing options available, some of the best equipment financing companies for small businesses, and the benefits of financing equipment over purchasing it outright.


Types of Equipment Financing Options: There are different types of equipment financing options available to small businesses, including:

  1. Equipment Leasing: This option allows small businesses to lease equipment for a set period of time, usually 2-5 years, and make monthly payments. At the end of the lease, the business can choose to return the equipment, purchase it at a discounted rate, or renew the lease.

  2. Equipment Loans: This option allows small businesses to borrow money to purchase equipment and make fixed monthly payments over a set period of time, usually 2-5 years.

  3. Sale and Leaseback: This option allows small businesses to sell their equipment to a financing company and lease it back from them for a set period of time.

Best Equipment Financing Companies for Small Businesses: Here are some of the best equipment financing companies for small businesses:

  1. Crest Capital: Crest Capital is a nationwide equipment financing company that offers a range of financing options, including leases, loans, and sale and leaseback agreements. They offer competitive rates and flexible repayment terms.

  2. Balboa Capital: Balboa Capital is another nationwide equipment financing company that offers a range of financing options, including leases, loans, and sale and leaseback agreements. They offer quick approval times and flexible repayment terms.

  3. Currency Capital: Currency Capital is an online equipment financing company that offers a range of financing options, including leases and loans. They offer competitive rates and fast approval times.

  4. National Funding: National Funding is a nationwide equipment financing company that offers a range of financing options, including leases, loans, and sale and leaseback agreements. They offer flexible repayment terms and fast approval times.

Why Finance Equipment Rather Than Pay Out of Pocket:


It's often better for small businesses to finance equipment rather than pay out of pocket through a business line of credit or a loan for several reasons. First, financing equipment allows businesses to preserve their cash flow and working capital, which can be used for other important expenses. Second, equipment financing offers fixed payments and predictable costs, which can help businesses manage their budgets more effectively. Third, financing equipment allows businesses to acquire the necessary equipment without having to put up collateral or take on additional debt.


Tax Benefits and Advantages:


Financing equipment also offers several tax benefits and advantages. For example, businesses can deduct the interest paid on their equipment financing payments from their taxes. Additionally, businesses can take advantage of the Section 179 tax deduction, which allows them to deduct the full cost of the equipment in the year it was purchased, up to a certain limit. Financing equipment also allows businesses to hold onto their liquid assets, such as cash and credit, which can be used for other important expenses.


Equipment financing is a valuable tool for small businesses that need to acquire the necessary equipment while maintaining their cash flow. There are different types of equipment financing options available, and several companies offer competitive rates and flexible repayment terms. Financing equipment offers several benefits over purchasing it outright, including preserving cash flow, fixed payments, and tax benefits. By financing their equipment, small businesses can optimize their finances and position themselves for long-term success.

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Jon Millikan

Expert Analyst & Contributor

Jon has been writing for Xsellarate about small business solutions and financing since 2022. He started writing professionally about business related topics in 2012. Jon has been featured in Business Insider, OC Journal, the OC Wave, Entrepreneur Magazine & other publications. He has a bachelor's degree in Business Administration from California State University Monterey Bay and currently resides in Huntington Beach, California.

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