# Equipment financing cheat sheet: match the term to the machine

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Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/equipment-financing/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
Equipment financing pays for business equipment, or for repairing and replacing it, with payments spread over a term matched to the equipment's useful life. At Merchant Fund Express, terms never run longer than 60 months, a vendor quote or invoice is needed, and a down payment may be asked. Businesses with 6+ months of history often fit. Section 179 may help with taxes, but confirm with a tax professional.

## At a glance
- Typical amounts: Based on the equipment cost; MFE reviews $5,000 to $5,000,000
- Time in business: Often 6+ months
- Credit: Scores from 500 considered; stronger credit usually means better offers
- Term: Matched to equipment life; never more than 60 months at MFE
- Key document: Vendor quote or invoice
- Down payment: May be asked, depending on the file and the equipment
- Other documents: 3 to 4 months of bank statements, ID, voided check; more for large equipment
- Speed: Same-day decisions common on complete files; never promised
- Best for: Equipment that earns money for years: ovens, HVAC units, trucks, lifts, machines
- Avoid if: The item wears out before the term ends

## Before you apply: checklist
- Get a written vendor quote or invoice with model and price
- Estimate how many years the equipment will be useful
- Pick a term no longer than that life, and no more than 60 months at MFE
- Set aside funds for a possible down payment
- For repairs, get a written repair estimate from the shop
- Pull 3 to 4 months of business bank statements
- Ask a tax professional about Section 179 before you buy
- Compare total repayment, not just the monthly payment

## Repairs and replacement, not just new purchases
Equipment money is not only for shiny new machines. Many owners use it when something breaks: Commercial HVAC. A failed rooftop unit or compressor for a contractor's own fleet or a business's building. Truck repair. Engine or transmission work that keeps a work truck earning. Restaurant equipment. Walk-in coolers, ovens, fryers and hood systems. For repairs, a written repair estimate or invoice plays the role of the vendor quote. If the repair is small and urgent, working capital can also fit; compare in equipment financing vs working capital . Our equipment financing guide has more examples.

## Terms, large equipment and the 60-month cap
The rule of thumb is simple: do not pay for equipment longer than it lasts . A laptop might justify a short term. A heavy machine might justify a longer one. At MFE, equipment terms never run past 60 months. Large equipment requests, such as production machinery or multiple vehicles, usually need more documentation: financial statements, tax returns and detailed quotes. A down payment may be asked, which lowers the financed amount and the payment. Note that many funders restrict long-haul trucking, so trucking requests are reviewed case by case.

## Section 179 in plain English
Section 179 of the tax code may let a business deduct some or all of the cost of qualifying equipment in the year it is placed in service, rather than spreading the deduction over several years. Limits, eligibility and timing rules apply and can change. This is not tax advice. Confirm with a tax professional before you buy or finance based on a tax benefit. Read Section 179 and equipment financing for a longer overview.

## Illustrative example: replacing a commercial oven and hood
Illustrative example Item Amount Vendor quote $60,000 Down payment (10%) $6,000 Amount financed ($60,000 minus $6,000) $54,000 Term 48 months Assumed total repayment $66,960 Monthly payment ($66,960 / 48) $1,395 Cost of financing ($66,960 minus $54,000) $12,960 Assumptions: a 10% down payment, a 48-month term within the equipment's expected life, no other fees. These figures are illustrations, not offers. Real pricing and terms depend on your file. Common mistakes: Choosing a term longer than the equipment will last. Applying without a vendor quote or repair estimate. Counting on a tax deduction without asking a tax professional. Forgetting installation, delivery and training costs.

## How Merchant Fund Express handles this
Merchant Fund Express reviews equipment financing from $5,000 to $5,000,000, with terms matched to equipment life and never longer than 60 months. Have the vendor quote or invoice ready and expect that a down payment may be asked. See the MFE equipment financing page and apply with Merchant Fund Express . English and Spanish service is available.

## Frequently asked questions
**Can I finance equipment repairs?** Yes. Repairs and replacements are common uses, such as commercial HVAC units, truck engines and restaurant coolers. A written repair estimate or invoice usually stands in for the vendor quote. Small urgent repairs may also fit working capital.

**What is the longest term for equipment financing at MFE?** Terms are matched to the equipment's useful life and never run longer than 60 months at Merchant Fund Express. A shorter term usually means a lower total cost, even though each payment is higher.

**Do I need a down payment?** Sometimes. A down payment may be asked depending on the equipment, the amount and your file. It lowers the financed amount and the payment. Plan for it before you sign the vendor order.

**Does equipment financing qualify for Section 179?** It may, depending on the equipment, how it is used and current tax rules. Section 179 can allow a faster deduction for qualifying equipment. Confirm with a tax professional before relying on it.

**Can I finance used equipment?** Often yes, though terms may be shorter because used equipment usually has less life left. A clear quote with the age, condition and price helps the review.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=equipment-financing