Types of Equipment You Can Finance: From Machines to Vehicles
Discover what equipment qualifies for financing. From heavy machinery to technology, learn what you can fund and typical terms for each category.
Types of Equipment You Can Finance: From Machines to Vehicles
One of the most common questions from business owners is “Can I finance this equipment?” The good news is that almost any legitimate business asset can be financed with equipment financing. From heavy earth-moving machinery to complex computer systems, options exist for every industry.
You know how challenging it is to balance the need for new gear with the reality of maintaining monthly cash flow. Financing isn’t just about lack of capital. We often see profitable companies finance equipment simply to keep their cash reserves liquid for emergencies or payroll. There is also the massive tax incentive. For 2026, the Section 179 deduction limit has risen to approximately $2.56 million. This allows many businesses to write off the entire purchase price of equipment this year rather than depreciating it over a decade.
This guide breaks down the specific categories of financeable equipment, the terms you can expect, and the “insider” details that help you make a smarter buying decision.
Heavy Equipment and Machinery
What’s Included
- Excavators and backhoes
- Bulldozers and graders
- Cranes and lifts
- Forklifts and warehouse equipment
- Manufacturing machinery
- CNC machines
- Printing presses
- Processing equipment
Typical Financing Terms
| Feature | Typical Range |
|---|---|
| Amounts | $25,000 to $10 million+ |
| Terms | 3-10 years |
| Interest Rates (2026) | 6% - 10% (Strong Credit) / 12% - 20% (Challenged Credit) |
| Down Payment | 0-20% |
| Structure | Loans or Equipment Finance Agreements (EFA) |
Why It Finances Well
Heavy equipment acts as excellent collateral because it holds its value incredibly well. Brands like Caterpillar and John Deere are known for high resale values even after thousands of hours of use. Lenders are more willing to approve these loans because they know they can recover their funds if things go wrong.
Insider Tip: Watch the “Useful Life”
We always advise clients to match the loan term to the equipment’s useful life. If you buy a used excavator with 8,000 hours on it, do not take a 7-year loan. You might end up paying for a machine that is no longer operational.
Dallas Industry Applications
- Construction companies expanding fleets for North Texas infrastructure projects
- Manufacturing facilities adding capacity
- Logistics companies upgrading warehouses
Commercial Vehicles
What’s Included
- Semi-trucks and trailers
- Delivery vans and box trucks
- Service vehicles
- Fleet cars and SUVs
- Specialty vehicles (refrigerated, tanker, etc.)
- Buses and coaches
Typical Financing Terms
- Amounts: $20,000 to $500,000+
- Terms: 3-7 years
- Down Payment: 0-15%
- Structure: TRAC Leases or standard loans
Why It Finances Well
Vehicles have standardized valuations (like Kelley Blue Book for business), which makes the approval process fast. Lenders can instantly verify the asset’s value.
Critical Warning: The 6,000 lbs Rule
You need to be careful when purchasing smaller work vehicles. To qualify for the maximum Section 179 tax deduction, a vehicle must generally have a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs. “Heavy” SUVs between 6,000 and 14,000 lbs are often subject to a deduction cap (around $31,300 in recent years). True commercial vehicles over 14,000 lbs typically qualify for the full deduction. Always check the door jamb sticker before you buy.
Dallas Industry Applications
- Trucking and logistics companies in the Alliance corridor
- Service businesses (plumbing, HVAC, etc.)
- Delivery and courier services
- Corporate fleets
Medical and Healthcare Equipment
What’s Included
- Diagnostic imaging (MRI, CT, X-ray)
- Dental chairs and equipment
- Lab equipment
- Patient monitors
- Surgical equipment
- Rehabilitation equipment
- Veterinary equipment
Typical Financing Terms
- Amounts: $5,000 to $5 million+
- Terms: 3-7 years
- Down Payment: 0-10% (Often 0% for medical pros)
- Structure: Loans or FMV Leases
Why It Finances Well
Medical equipment is essential for revenue generation. A dentist cannot work without a chair, which makes default rates in this industry very low. Consequently, lenders often offer “application-only” approvals up to $250,000 or even $500,000 for licensed medical professionals.
The “Soft Cost” Factor
We often see installation, training, and software making up 20% or more of a medical equipment invoice. These are called “soft costs.” Most general lenders hate financing soft costs because they cannot repossess training. specialized medical lenders, however, will typically include these costs in the loan amount so you do not have to pay them out of pocket.
Dallas Industry Applications
- New medical practices opening in Frisco and Plano
- Established practices upgrading technology
- Dental offices expanding services
- Veterinary clinics modernizing
Restaurant and Food Service Equipment
What’s Included
- Commercial ovens and ranges (Wolf, Vulcan)
- Refrigeration and freezers
- Food preparation equipment (Hobart mixers)
- Dishwashing systems
- Point-of-sale systems (Toast, Square)
- Furniture and fixtures
- HVAC and ventilation
Typical Financing Terms
- Amounts: $5,000 to $500,000
- Terms: 3-5 years
- Down Payment: Minimal (First & Last payment)
- Structure: Capital Leases ($1 Buyout)
Why It Finances Well
Restaurant equipment wears out, but it is standard and easy to resell. There is also a strong argument for financing new gear rather than buying used. Data shows that commercial refrigeration units average about $2,100 per year in repair costs. Financing a new unit with a warranty often costs less per month than the repair bills on an old unit.
Dallas Industry Applications
- New restaurant openings in Deep Ellum or Bishop Arts
- Kitchen renovations and upgrades
- Expanding to additional locations
- Converting concepts
Technology and IT Equipment
What’s Included
- Computer systems and servers (Dell, HP)
- Networking equipment (Cisco)
- Phone systems
- Data center equipment
- Security systems
- Software (ERP, CRM)
- Audio/visual equipment
Typical Financing Terms
- Amounts: $5,000 to $1 million+
- Terms: 2-3 years (shorter due to obsolescence)
- Down Payment: Often minimal
- Structure: Fair Market Value (FMV) Leases
Comparison: FMV vs. $1 Buyout
You have two main options when financing tech, and the right choice depends on your goals.
| Lease Type | Best For… | What Happens at End? |
|---|---|---|
| FMV Lease | Laptops, Desktops, Servers | Return equipment or buy at market value. Lower monthly payments. |
| $1 Buyout | Cabling, Infrastructure, Security | You own it for $1. Higher monthly payments. |
Why Leasing Is Popular
Technology evolves quickly. Leasing allows businesses to upgrade regularly without being stuck with outdated equipment that is difficult to dispose of securely.
Dallas Industry Applications
- Tech companies scaling operations in the Telecom Corridor
- Offices upgrading infrastructure
- Retail modernizing POS systems
- Any business improving technology
Office Equipment and Furniture
What’s Included
- Desks, chairs, and workstations (Steelcase, Herman Miller)
- Conference room furniture
- Cubicle systems
- Copiers and printers
- Mailroom equipment
- Break room appliances
Typical Financing Terms
- Amounts: $2,000 to $100,000
- Terms: 2-5 years
- Down Payment: Minimal
- Structure: Often bundled with office buildouts
Hidden Value: Financing the Design
We find that many business owners forget they can finance the design and installation fees. These “soft costs” can represent up to 25% of a furniture project. Specialized lenders will wrap the design fees, delivery, and installation into the monthly payment so you do not have to write a separate check.
Dallas Industry Applications
- New office openings
- Office relocations
- Expansion and hiring
- Workspace renovations
Agricultural Equipment
What’s Included
- Tractors and combines
- Planting and harvesting equipment
- Irrigation systems
- Livestock equipment
- Processing equipment
- Storage facilities
Typical Financing Terms
- Amounts: $10,000 to $1 million+
- Terms: 3-10 years
- Interest Rates: USDA Direct Operating loans approx. 4.625% (Jan 2026)
- Down Payment: 10-20%
Why Specialized Financing Exists
Agriculture has unique cash flow cycles. Unlike a coffee shop that makes money every day, a farm might only have revenue once or twice a year. Specialized lenders structure payments annually or semi-annually to match harvest seasons.
Retail Equipment
What’s Included
- Shelving and displays
- Point-of-sale systems
- Security systems
- Inventory management systems
- Signage
- Specialty retail equipment
Typical Financing Terms
- Amounts: $5,000 to $250,000
- Terms: 2-5 years
- Structure: Loans, leases, or vendor programs
POS System Costs
You might be surprised at the cost of modern Point of Sale systems. A full setup for a retail store using robust hardware like Clover or specialized setups like Toast for food retail can run into the thousands. Financing this hardware keeps your startup capital available for inventory marketing.
Dallas Industry Applications
- New retail store openings
- Store remodels
- Technology upgrades
- Multi-location expansions
What Makes Equipment Financeable?
Strong Candidates
- Essential: The business cannot operate without it.
- Durable: It has a long useful life.
- Identifiable: It has a serial number and model number.
- Resale Value: A secondary market exists.
More Challenging
- Customized: Equipment built for only one specific task.
- Obsolete: Technology that is already outdated.
- Intangible: Projects that are 100% software or consulting.
- Unproven: Equipment for experimental industries.
Financing New vs. Used Equipment
New Equipment
- Full manufacturer warranty.
- Latest technology and efficiency.
- Lower interest rates from lenders.
- Higher upfront cost.
Used Equipment
- Lower purchase price.
- Immediate availability (no manufacturing lead time).
- Higher maintenance risk.
- Slightly higher interest rates.
Most lenders finance both new and used equipment. We typically see a 5-year age limit on technology and a 10-year age limit on heavy machinery, though exceptions exist for top-tier brands.
The Bottom Line
Almost any equipment your Dallas business needs can be financed. The key is matching the right financing structure to the equipment type.
- Long-life equipment → Longer loan terms (5-7 years).
- Rapidly evolving tech → Short-term FMV leases (2-3 years).
- High-value assets → Tax-advantaged loans using Section 179.
- Seasonal revenue → Annual payment structures.
Ready to finance equipment for your business? Contact Equipment Financing Dallas Pros to explore options for your specific equipment needs.
