A loan that is secured by specific equipment and repaid in regular payments over a set period of time.
Depending on the equipment, the loan period is usually 3 to 7 years. Loan repayment term usually matches the expected economic life of the asset.
Low-cost financing for technology companies that require physical (tangible) assets.
Loan size is flexible — can be used to finance a single piece of equipment or hundreds of items.
Although equipment loans are available for “asset-light” companies (e.g. a SaaS company with a few desktop computers), the proceeds are unlikely to comprise a significant portion of the company’s overall capital needs.
Company with datacenter, laboratory, research and development, manufacturing, or automation equipment.