The short answer
How the equipment secures the deal
With most business funding, the funder looks mainly at your deposits and credit. With equipment financing, the item itself also matters. Because the equipment is pledged as security, the funder has something of value tied to the deal, which can make terms easier than unsecured options for the same business.
That also means the equipment has to be real, identifiable and worth roughly what you are paying. That is why a written vendor quote or invoice is required. It lists the make, model, price and seller.
Matching the term to the equipment's life
A sensible rule: do not still be paying for something after it has worn out. A laptop might last three years. A commercial oven or a skid steer might last much longer. MFE matches terms to equipment life and caps them at 60 months.
- Shorter-life items such as computers, POS hardware and small tools usually get shorter terms.
- Heavy or durable items such as kitchen lines, lifts and construction machinery can qualify for longer terms within the 60-month cap.
A longer term lowers the monthly payment but raises total cost. Choose the shortest term your monthly cash flow can carry comfortably.
Check what your business qualifies for
Merchant Fund Express reviews equipment financing requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressNew versus used equipment
Used equipment costs less, so the amount financed and the payment are smaller. The tradeoffs are a shorter remaining life, which can mean a shorter term, and sometimes a larger down payment, since the resale value is less predictable.
New equipment usually comes with a warranty and a longer useful life, which supports a longer term. For a used purchase, get the seller's quote with the serial number, year and hours or condition listed. A vague private-party listing is hard to finance.
Worked example: a restaurant combi oven
Illustrative example. These figures are illustrations built on stated assumptions, not offers. Real pricing depends on the file MFE reviews.
Assumptions: a restaurant buying a $42,000 combi oven from a dealer. A 10% down payment is asked. The remaining $37,800 is financed over 48 months, and total payments are assumed at $46,800.
| Item | Amount |
|---|---|
| Equipment price (vendor quote) | $42,000 |
| Down payment (10%) | $4,200 |
| Amount financed | $37,800 |
| Monthly payment ($46,800 / 48) | $975 |
| Total of monthly payments | $46,800 |
| Total paid including down payment | $51,000 |
| Cost above the equipment price | $9,000 |
Here the funds go to the dealer, so the owner's net cash out on day one is the $4,200 down payment. If the oven lets the kitchen add 40 covers a week, the $975 payment can be compared against that added revenue before signing.
Funding brings customers. Is your website ready for them?
New equipment usually means a new service, more capacity or faster turnaround, and your website should say so the week it arrives. Add the new service page, update photos and make sure booking works so the machine starts earning. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month for updates like these.
Who it fits and who it does not
Fits: a business with 6+ months of history buying identifiable equipment that produces revenue or cuts costs, such as a dental chair, a printing press or a commercial mower fleet.
Does not fit: soft costs with no resale value, like training or software subscriptions, or a general cash need. Those are better handled with working capital or a line of credit. Also note that many funders restrict certain industries, including residential remodeling and long-haul trucking, so equipment for those uses may face limits.
What to prepare, and tax questions
- Vendor quote or invoice with model, price and seller details
- 3 to 4 months of business bank statements
- Owner ID and a voided business check
- A short application on the MFE equipment financing page
Section 179 of the tax code may let some businesses deduct qualifying equipment purchases in the year they are placed in service rather than over many years. Whether it applies to you depends on your situation, so confirm with a tax professional before counting on it.
If cash is fine and the item is cheap, paying outright may beat financing. If the item will be obsolete in a year, renting can be the smarter choice.
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.