Equipment financing funds the purchase or lease of business equipment, from ovens and dental chairs to lifts and contractor vehicles, usually secured by the equipment itself. Quillfield Business Funding, a small-business funding broker in Kalamazoo, Michigan, explains loans, leases and finance agreements to Kalamazoo County owners and routes requests to lending partners, which decide and set terms.
| Pays for | A named machine, vehicle or system on a quote |
|---|---|
| Collateral | Usually the equipment itself |
| Structures | Loan, lease or EFA |
| New or used | Both are financed; used gets a closer look |
| Kalamazoo County context | 266 specialty trade contractors and 101 dental offices with employees (Census CBP 2023) |
| Decision | Lending partner decides and prices |
How equipment financing works
It starts with you choosing the equipment and getting a quote. A partner reviews the business and the item, then pays the seller directly. You make regular payments over a term usually matched to the equipment's useful life, and the equipment stays pledged until the deal is paid off or the lease ends. Because the item secures the deal, equipment financing can be easier to arrange than unsecured funding of the same size.
Three structures: loan, lease and EFA
| Structure | Who owns it | When payments end | Suits |
|---|---|---|---|
| Equipment loan | The borrowing business, with the partner's lien attached | Lien released when paid off | Equipment you plan to keep for its whole life |
| Lease | The lessor | Hand it back, extend, or buy it, per the lease | Technology that dates quickly, or keeping options open |
| Equipment finance agreement (EFA) | You, from the start | Nothing left to buy once payments end | Owners who want ownership with loan-like simplicity |
Lease end terms matter. A fair-market-value lease leaves a purchase price to negotiate at the end; a nominal buyout lease works more like a loan. Ask which one an offer is and what the end-of-term options cost. Tax treatment also differs between structures, which is a question for your tax professional.
Medical and dental equipment
Ambulatory health care, which includes physician, dental and therapy offices, had 500 employer establishments in Kalamazoo County in 2023, among them 101 dental offices and 130 physician offices (U.S. Census Bureau, County Business Patterns 2023). Imaging units, dental chairs, sterilizers and practice software are typical requests. Partners often know clinical equipment well and look at the practice's collections as much as the item. The medical and dental page covers fit-outs and payroll as well.
How to finance construction equipment
Excavators, skid steers, lifts, compressors and work trucks are common contractor requests. Kalamazoo County had 266 specialty trade contractor employers and 150 building construction employers in 2023 (CBP 2023). For a contractor, the questions a partner asks are practical: is the machine new or used, what hours does it have, will it be on job sites or in a yard, and is there steady work to pay for it? Contractor financing has the sector detail. We do not arrange trucking or over-the-road freight equipment.
Kitchens, coolers and point-of-sale systems
Restaurants finance ranges, hoods, walk-in coolers, dish machines and POS terminals the same way. Smaller items are sometimes grouped into one package so a single agreement covers a whole kitchen. The restaurant page explains how kitchen equipment fits next to working capital and build-out costs.
Buying used equipment
Used equipment is financed regularly, but partners look harder at age, condition and who is selling. A dealer sale with an invoice is simpler than a private sale; for a private sale, expect requests for photos, a serial number, proof the seller owns it free of liens, and sometimes an inspection or appraisal. Terms on older equipment are often shorter, because the item has less life left to secure the deal.
Costs beyond the sticker price
Delivery, installation, electrical work, training and software licenses can add real money to an equipment purchase. Some partners will include those soft costs in the financed amount and some will not. Ask early, so the gap does not surprise you on delivery day.
Equipment-specific financing versus a general term loan
If the purchase is one machine, equipment financing usually fits, because the machine secures it. If the project mixes equipment with construction, inventory and working capital, a single term loan may be simpler. The county profile shows which sectors dominate locally, the industry pages show what each one tends to buy, and the request steps and the FAQ cover the rest.
What an equipment partner usually asks for
- A seller's quote listing make, model, year and condition
- Recent business bank statements
- Time in business and, for larger amounts, financial statements or tax returns
- Proof of insurance once the equipment is delivered
A complete quote saves the most time. A partner prices the deal partly on what the equipment is worth if it ever has to be resold, so a vague description such as 'kitchen package' slows things down while an itemized list with model numbers does not.
By Quillfield Business Funding ยท Updated