Equipment Loan - Light Machinery


Light Machinery is obtaining the use of machinery, vehicles or other equipment on a lease or rental basis. This avoids the need to invest capital in equipment but still allows the business to operate effectively in a short period of time. The lender will purchase the required equipment and will agree to insure and maintain it. The business owner then pays consistently over the agreed usage period and may be able to acquire the equipment at the end, depending on the type of asset finance deal entered into.


There are several benefits of equipment financing for business owners, including the increase in working capital, the ability to utilize the best equipment, the tax benefits associated with equipment financing, freeing up other lines of credit, and the easy application process. You can even finance used equipment and take advantage of the Section 179 tax deduction, so long as the equipment is eligible. Contact your accountant or business attorney to find out if the used equipment you are interested in qualifies for the Section 179 deduction. Light Machinery helps in safeguarding long-term investments against the rise in prices. By locking in a long-term lease or financing option, you can secure your business against a potential increase in prices. Such savings ultimately helps in reducing the cost per unit and improves margins


The only hard security for Light Machinery should be the equipment itself but can be secured (cross collateralised) against other assets including real estate.

Repayment terms

Agreed between Lender and Borrower Depending on the repayment amount and the amount you borrow, loan terms generally range from 1-7 years.


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