Equipment Loan

A loan that a borrower requests from a lender to finance the acquisition of specific equipment, software, or tenant improvements. Equipment loans are a type of asset-based lending that helps business owners get funding to purchase or lease equipment without depleting their working capital.
Equipment loans are used to purchase business-related equipment, such as a restaurant oven, vehicle, or copy machine. When you take out an equipment loan, you'll need to make periodic payments that include interest and principal over a fixed term.