One of the most popular asset-based loans is equipment financing. This is a potential fit if the reason you’re looking for money is to buy a piece of new or used equipment. Instead of paying for expensive equipment outright, you can take an equipment loan or lease to fund the purchase.
While equipment financing is available to established and new businesses, it’s an especially good option for newer business because the equipment itself secures the loan. That means you don’t need to put up any other collateral. The equipment itself serves as collateral.
Equipment loans have pretty good rates depending on your business’s age, credit, and finances. You can use equipment financing to buy or lease a range of equipment types, which can include vehicles. Equipment financing is a great option for food truck financing and other types of commercial trucks.