Question 1

What is the difference between a $1 buyout and an FMV lease?

Accepted Answer

A $1 buyout means you own the equipment at the end of the term for one dollar. It has the highest monthly payment and the lowest total cost, and behaves like a loan. An FMV lease has the lowest monthly payment, but at the end you return the equipment, renew, or buy it at fair market value, commonly 10 to 20 percent of original price and not fixed in advance. If you intend to keep the equipment, the $1 buyout is almost always cheaper overall.

Question 2

Can I finance equipment with bad credit or as a startup?

Accepted Answer

Often yes. Equipment financing is secured by the equipment, so lenders weigh the asset and its resale value alongside your credit. Startups under two years old, scores in the 600s, and owners without conventional proof of income are all financeable, usually with a larger deposit or shorter term.

Question 3

How fast can equipment financing fund?

Accepted Answer

Application-only deals, generally under $150,000 to $250,000, are commonly approved same or next day and funded in two to five business days once the vendor invoice is in hand. Larger transactions requiring full financials typically take one to three weeks.

Question 4

How much does Section 179 actually save me in 2026?

Accepted Answer

Section 179 allows a deduction of up to $2,560,000 of qualifying equipment in 2026, phasing out above $4,090,000 of purchases, and 100 percent bonus depreciation applies to equipment placed in service in 2026 on new and used property. But a deduction is not a rebate: deducting $200,000 at a 24 percent effective rate saves roughly $48,000, not $200,000, and only if you have taxable income to offset. Equipment must be placed in service, not merely ordered, before year end.

Question 5

Should I finance through the equipment dealer or separately?

Accepted Answer

Dealer financing is convenient and sometimes subsidised on new equipment, which can be the cheapest option. It is worth comparing because the dealer quotes one lender's paper and usually quotes a monthly payment rather than total cost. Ask for the structure, term, buyout and total of payments, then compare like for like.

Question 6

Can I finance used equipment or a private sale?

Accepted Answer

Yes. Used equipment is financed routinely, including private party and auction purchases, though terms are usually shorter and advance rates lower because resale value is harder to predict. Age limits vary by equipment type.

What financing does your business actually qualify for?

What is the money for?

How much do you need?

How long has the business been operating?

Roughly what does it deposit each month?

Where is the owner personal credit?

How soon do you need it?