Equipment Financing Pre-Qualifier

When equipment financing makes sense

Good fit when:

• The equipment is income-producing — it directly increases capacity, opens a new revenue line, or replaces a more expensive process.
• You have a profile that qualifies for tier-1 pricing: FICO 700+, 3+ years in business, new equipment, 10%+ down.
• You can elect Section 179 — first-year expensing dramatically reduces after-tax cost. If your marginal rate is 25-37%, the tax shield can be 25-37% of the entire equipment price.
• Vendor finance programs aren't competitive — equipment vendors often pad in their own commission. Shopping the finance independently is almost always cheaper.

Skip or restructure when:

• The equipment is 7+ years old and you have no downpayment. Most lenders require 20%+ down on older gear or pass entirely.
• FICO under 580 with under 1 year in business — below most equipment-finance underwriting floors. Season the business with a working-capital advance first.
• The break-even revenue requirement exceeds what the equipment can realistically generate. Don't finance a $50K piece of equipment that needs to do $5K/month in new revenue if your sales pipeline only supports $3K.
• You can pay cash without depleting reserves. Sometimes the right answer is "buy it outright and skip the 8-12% APR" — particularly for smaller buys ($5K-$25K).

Section 179 nuance: the deduction has annual limits and bonus-depreciation phaseouts. Your CPA should run the actual treatment — this calculator gives a ballpark only. If your business is operating at a loss, Section 179 may not help in the current year (the deduction can't create a loss, only reduce income).

Which path fits you?

This tool helps three audiences. Pick the one that's you.

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