How Equipment financing works
Equipment can be financed through SBA 7(a) loans, SBA 504 loans (for long-life equipment), conventional bank equipment loans, or equipment finance companies. The appropriate option often depends on the equipment's cost, expected useful life, and whether the purchase is part of a larger project.
Lenders generally look at how the equipment supports the business's cash flow and the value of the equipment as collateral.
Common business uses
- Manufacturing and production machinery
- Commercial vehicles and transportation equipment
- Medical, dental, and professional equipment
- Restaurant, hospitality, and retail equipment
- Technology systems and specialized software-supported equipment
General eligibility considerations
- Established business cash flow or a credible plan supporting repayment
- Equipment quote or invoice from the vendor
- Equipment useful life consistent with the requested term
- Acceptable credit history for the business and owners
Documentation lenders typically request
- Vendor quote or invoice describing the equipment
- Business federal tax returns (typically the most recent three years)
- Personal federal tax returns for owners with significant ownership
- Year-to-date profit and loss statement and balance sheet
- Personal financial statement for each owner
- Business debt schedule listing current obligations
- Explanation of how the equipment supports revenue or efficiency
Requirements vary by lender and program. Please do not send tax returns or other sensitive documents through our website form — we will provide a secure method when documents are needed.
The role Sapphire Holdings plays
- Help determine which financing types may fit the equipment and term needed
- Organize quotes, financials, and supporting information
- Help connect you with appropriate lending sources
Sapphire Holdings is not a lender and does not make credit decisions. The lender independently determines eligibility, rates, terms, and approval.