A type of asset financing, business equipment financing, is where the equipment is used to secure the loan.
This means that you don’t need to provide additional collateral. You may also be able avoid needing a personal guarantee.
However, you may need to make a down payment between 10% and 25% for the equipment that you finance. The interest rate you will receive is likely to be lower the larger your down payment. Equipment financing rates generally range between 4% and 40% depending on your lender, the qualifications of your business, and the equipment that you are purchasing.
