Buy the machine that earns. Keep the cash that runs the business.
Financing with the equipment itself as collateral — so you can acquire the machinery, vehicles, and technology that produce revenue without draining the working capital your operation depends on.
What is equipment financing?
Equipment financing is asset-based lending secured by the equipment itself, letting a business acquire revenue-producing machinery, vehicles, or technology without paying the full purchase price upfront. Because the asset secures the financing, it is generally viewed as lower-risk than unsecured borrowing — which is what lets the structure stay flexible and the cash stay in your business.
It’s a natural fit for asset-intensive operators — manufacturers, construction firms, transportation and logistics businesses, and anyone whose growth is gated by the gear on the floor. The equipment proves the use of funds; the structure turns a large capital outlay into capital in motion.
How equipment financing works
Availability is built from a borrowing base tied to the equipment’s value, with the asset itself serving as the collateral. Rather than committing you to a one-size term, we align the structure to the equipment and how it earns.
Sized to the asset
Funding is driven by the equipment’s value and resale characteristics, so the structure reflects the collateral rather than your historical cash flow alone.
Matched to useful life
Terms are aligned to how long the asset is expected to produce, so you’re not still paying for a machine long after it has earned its keep.
New or used
From a single high-value machine to a fleet, and from new purchases to quality used equipment — underwritten on the asset and the deal.
What businesses use it for
Expand capacity
Add production lines, vehicles, or tooling to take on more work without waiting to save up the full purchase price.
Replace aging equipment
Swap out gear that’s slowing you down or running up repair bills, and keep output and margins where they belong.
Preserve liquidity
Acquire the asset while keeping cash free for payroll, materials, and the day-to-day that keeps the doors open.
Unlock owned equipment
Where it fits the deal, financing can be structured against equipment you already own to free up working capital from assets sitting on the balance sheet.
The equipment pays for itself. We help you get it sooner.
Tell us what you’re acquiring and what it will produce, and we’ll structure the financing around the asset.
Who is equipment financing for?
It fits asset-intensive businesses that need to acquire or replace revenue-producing equipment and would rather preserve working capital than write a large check. If the machine, vehicle, or system earns its keep, the financing can be built around it — and personal credit is one input in that review, not the gate.
Equipment financing is one part of our wider asset-based lending family, alongside receivables, inventory, and real estate financing. If your need is shorter-cycle cash flow rather than an asset purchase, a business line of credit may fit better, and the full menu lives on our solutions hub. Capital Source has funded businesses since 2015, manages over $500 million in active funding programs, and lends in 46 states (we do not currently fund businesses in California, Connecticut, Utah, or Virginia). Curious how we evaluate a deal? Read about how we operate.
Frequently asked questions
What can be used as collateral for equipment financing?
The equipment being financed typically serves as the collateral, which is what lets the structure stay flexible. Eligibility depends on the asset’s value, condition, and resale characteristics, determined in underwriting.
Can I finance used equipment?
Yes. Quality used equipment can be financed alongside new purchases. The asset’s value and remaining useful life are the main factors, and those are assessed in underwriting.
How are equipment financing terms set?
We aim to align the structure to the equipment’s expected useful life rather than a single fixed term, so the financing reflects how the asset actually earns. The specifics are determined deal by deal.
Does my personal credit decide it?
Not on its own. Because the equipment secures the financing, collateral quality and the health of the business carry significant weight. Personal credit is one input in the review, not a gate.
Put the equipment to work without putting your cash flow at risk.
Tell us where your business is headed and we’ll structure capital around the assets that get it there.