Equipment Financing

Our equipment loans allow you to purchase anything from office furniture and medical equipment to construction machinery or commercial kitchen equipment.

What is equipment financing?

Equipment financing is the use of a loan or lease to purchase or borrow hard assets like machinery for your business. Rather than paying for the assets in full upfront, equipment financing allows you to receive the equipment you need now while allowing you to pay for the asset over a period of time. This ideal for purchasing healthcare equipment, construction vehicles and machinery, kitchen equipment, and other large hard asset purchases that allow you to increase production and grow your business.

Equipment Leasing

With equipment leasing, instead of borrowing money to purchase the equipment outright, you are paying a fee to borrow the equipment from the leasing company who maintains ownership of the equipment while you use it. This is a great option for businesses that exchange or upgrade equipment frequently or ones that do not have the capital to pay the down payment required for a loan. It’s also more likely to cover additional soft costs associated with delivering and installing the equipment.

Lease arrangements can vary depending upon your company’s needs and if you want to own the equipment, some leasing companies will offer the option of purchasing the equipment at the end of your term.

Equipment Loan

An equipment loan is a loan taken out with the intended purpose of purchasing equipment. Typically, the equipment secures the loan meaning that if you can no longer afford to pay the loan, the equipment gets repossessed as collateral.

These loans are perfect for business owners that need a piece of equipment long-term but can’t afford to make the purchase upfront as the lending institution typically agrees to deploy the majority of the capital so that you can pay in periodic phases.

While the arrangement will ultimately cost more than if you had bought the equipment upfront, equipment loans allow you to receive the equipment you need, while leaving you with sufficient working capital.

What is invoice factoring?

Invoice factoring, also known as accounts receivable factoring, is a form of small business financing where a business sells its invoices to a factoring company in exchange for upfront funding. When the invoice amount is paid by the customer, the remaining balance is paid to the business owner minus a fee.

​Invoice factoring allows you to receive the working capital you need to maintain operations and plan for the future, but without taking on the periodic fixed payments associated with a term loan. If slow-paying clients are stalling your ability to pay bills or meet payroll, invest in technology and equipment or hire more staffing, invoice factoring can help you bolster cash flow by liquidating your outstanding accounts receivable to meet your business needs.

​Rather than waiting 30 to 120 days for your customers to pay you the money you need to run your business, invoice factoring provides you with working capital within 1-2 business days.

How does invoice factoring work?

After submitting your invoices to the lender for invoice financing, you’ll receive the amount of the invoice minus a percentage as payment. Once the client pays you, you satisfy the agreement with the lender. While it may be helpful to have the lender collect unpaid invoices on your behalf, understand that you will have less control over the collections process and that your clients may become aware of your cash flow shortages.​

  1. Small business owners sell outstanding invoices to a factoring service (the factor) at a discounted rate

  2. The factor advances a lump sum up to 95% of the value of the invoice

  3. The factor then collects all payments directly from the client

  4. The factor sends the remaining balance to the business, minus any fees, which is typically an agreed-upon percentage

Equipment Financing Details


  • Allows you to access equipment you could otherwise not afford, and it generally carries lower monthly payments than many other flexible financing options.

  • The equipment is often collateralized, making it easier to qualify for than most unsecured financing options. In other words, you do not need as strong of a credit score or annual revenue to qualify.

  • The interest rate and loan terms are often more favorable than many alternative financing options.


  • Buying the equipment outright will always be less expensive than financing it and equipment that needs to be replaced frequently may cause large amounts of debt.

Invoice Factoring Details


  • Invoice factoring provides a safe, immediate source of cash flow by releasing working capital that is tied up in unpaid invoices.

  • Having a lender collect invoices for you can help you save time spent on administration and chasing late payments.

  • Factoring provides flexibility as amounts can expand and contract with your sales volume.


  • Invoice factoring companies will verify your invoices with clients to ensure that they are accurate. Including a third party can affect customer relationships and also means that you will have to give up some control.

  • If your client has a weak payment history or credit score, it may affect your approval.

  • Invoice factoring can reduce the scope of additional borrowing and often has higher costs than a longer-term loan

Qualifying Criteria

  • 670+ personal credit score for startups

  • 580+ personal credit score for 2+ years in business

Documentation Required

  • Signed one page funding application

  • 3-5 months of business bank statements

  • Invoice or quote for the equipment

Qualifying Criteria

Approval for a business term loan from EJN Financial isn’t based on your credit score alone. We focus on the overall health of your business.

Here are some factors we consider:

  • 550+ credit score

  • 12+ months in business

  • $10,000+ average monthly bank deposits

Documentation Required

We at EJN Financial want to make the funding process as simple as possible for you.

Minimal documentation is needed for your application:

  • Signed one page funding application

  • 3-5 most recent months company bank statements

  • Full credit report

How To Apply

Pre-Qualify Online

To get prequalified, follow the "Apply Now" button and submit some basic business information.

Get Approved

After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.

Get Funded

Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.