Insight AgBanker Customer Equipment 792x792
Return to Insights

Why should your business consider an equipment finance loan?


by Simon Malinski and Doug Alverson

Depending on which industry your business is in, it may need different equipment to get the job done. While this equipment is necessary for operations, it can also get expensive very quickly.

As equipment costs add up, exploring an equipment finance loan could be a good next step. This is a specialized financial solution designed specifically for business owners with expanding equipment needs. These loans can be used to finance vehicles for a fleet, manufacturing machinery and a variety of other business-related items, such as:

  • Agricultural or farming equipment

  • Medical imaging equipment

  • Restaurant ovens and ranges

  • Construction equipment

  • IT equipment, servers and software

Let’s take a closer look at how an equipment loan could benefit your business.

Lower upfront costs

With equipment loans, you can spread the cost of purchasing equipment over a period of time, rather than paying for it all upfront. This helps conserve cash flow and frees up capital for other immediate business needs.

Work with an expert

Lenders that offer equipment loans will often have equipment finance specialists who can help navigate you through the process. They understand the ins and outs of these specialized loans, ensuring that you access the right solution for your business.

Customized payment plans

Equipment finance providers offer a variety of payment options to fit the unique financial needs of each business. This allows you to choose a payment plan that works for your operation, whether it’s a fixed monthly payment, a seasonal payment plan or something else.

Convenience and speed

In many cases, an equipment finance transaction can be executed and completed in less time than traditional financing alternatives. Lenders may also not require an existing relationship, which helps streamline the application process. If a preapproval option is available, this can speed up the process even further, allowing you to immediately take advantage of equipment sale opportunities.

Full financing

Equipment loans can provide 100% financing while other options may require an initial down payment. A portion of “soft” costs that come with buying equipment can also be included in the financing, including delivery charges, interest charges on advance payments, sales or use taxes, installation and training costs. These costs are not usually included in other financing methods.

Tax depreciation benefits

Section 179 of U.S. tax code1 allows qualifying businesses to deduct the cost of some equipment, whether financed or purchased directly, as an expense instead of capitalizing and depreciating it over several years. This allows businesses to take advantage of a more immediate tax break. It’s best to consult with a tax advisor on this topic.

The best financing option for your business depends on your unique financial situation, but in general, an equipment finance loan is a great choice when you need to make equipment purchases, especially if you need to do it quickly.


Simon Malinski Profile Pic

About Simon Malinski

Simon is an experienced finance professional with more than 17 years of experience in equipment finance, relationship management and business development. He has worked for two large banking organizations during his career; most recently, as Vendor Finance Relationship Manager, he was responsible for finding new and growing existing equipment finance business relationships within specific customer segments. His analytics, product knowledge and leadership experience, along with his ability to develop and foster strong relationships, are instrumental in leading this team for Bremer.

More on Simon

About Doug Alverson

Doug joined Bremer Bank in 2023 and has over 18 years of banking experience working with commercial, government and nonprofit customers. His focus is on providing equipment finance solutions.

More on Doug