Equipment financing pays for machines, vehicles and tools, with the equipment usually securing the loan or lease. Palmwick Lending, a small-business funding service in Kokomo, Indiana, helps owners line up quotes and records; lending partners review the request, set the terms and decide, whether the equipment is new or used.
| Pays for | Lifts, trucks, chairs, coolers, mowers |
|---|---|
| Secured by | Usually the equipment itself |
| Options | Equipment loan or lease |
| Repair shop employers in Howard County, IN | 49 establishments (CBP 2023) |
How to Finance Equipment for a Business: Loan or Lease
Equipment financing comes in two main forms. An equipment loan lets you own the item from the start, with the partner holding a lien until the balance is paid. An equipment lease lets you use the item for a set period, with an option at the end to buy it, return it or upgrade. Leases and loans differ in who owns the item at the end and how payments are structured, so compare the total cost of each.
Either way, the partner looks at the equipment as well as the business: what it is, how long it lasts, how easily it could be resold, and whether the price matches the market. A written quote or bill of sale from the seller is the starting point for almost every request.
Used Equipment Financing in Howard County, IN
Used equipment financing works much like financing new gear, with a few differences partners watch for. They want to know the age, hours or mileage, condition and remaining useful life, because the term of the financing should not outlast the machine. Dealer and private sales come with different paperwork; a private seller may need to show a clear title and payoff of any existing lien.
What is the sound way to finance used equipment? Match the term to the equipment's remaining life, get an independent inspection on anything costly, and ask whether the partner requires an appraisal. A lower purchase price only helps if the repair bills and the financing cost do not eat the savings.
Used Heavy Equipment Loans and Construction Equipment
Used heavy equipment loans and used construction equipment loans cover excavators, skid steers, loaders, trailers and similar machines. Partners commonly ask for the serial number, the hour meter reading, maintenance records and photos. For contractors whose income moves with project draws, a partner may also look at the jobs lined up for the machine, so a list of signed work helps. Howard County, IN had 131 construction employer establishments in 2023 (CBP), and the construction industry page covers how trades balance equipment payments against draw schedules.
Restaurant Supply Financing
Restaurant supply financing covers ranges, fryers, hoods, walk-in coolers, dish machines and POS systems. Kitchen equipment is specialized, so a partner may value it differently from a truck or a lift, and installation costs such as hood ventilation or electrical work may need to be financed separately or paid in cash. Ask the seller to split the quote between the equipment and the installation.
If the equipment is part of a larger remodel, a term loan for the build-out plus equipment financing for the machines can be a pairing.
Titles, Insurance and Delivery Costs
Titled equipment, such as trucks and trailers, needs clean title paperwork. A partner may require the equipment to be insured with the partner named as loss payee before funding. Delivery, installation, training and sales tax may or may not be financed; ask each partner how it treats them, and ask the seller for an itemized quote so the answer is easy to apply.
Howard County, IN Equipment Users by Trade
- Restaurants and food service: 149 full-service and limited-service restaurant establishments together (CBP 2023), each running a kitchen line.
- Medical and dental practices: 47 physician and 39 dental offices (CBP 2023) buying imaging, chairs and exam equipment.
- Chiropractic, therapy and optometry practices: 57 establishments (CBP 2023) with tables, rehab gear and diagnostic instruments.
Counts are 2023 County Business Patterns employer establishments in Howard County, IN. Our post on funding a physical therapy clinic in Kokomo, IN follows one equipment list from quote to payment.
Loan or Lease: Questions to Settle First
- Do you want to own the equipment at the end, or replace it on a cycle?
- What does the lease's end-of-term option cost: a fixed price, fair market value, or a nominal buyout?
- Who pays for insurance, maintenance and repairs during the term?
- Is there a down payment, and does the partner finance taxes, delivery and installation?
Answers differ from partner to partner, so ask for them in writing. See all six structures if equipment is only part of what you need, and the Kokomo, IN page for county figures. How a request works explains the order of steps.
By Palmwick Lending · Updated
