Equipment Financing,
Every Question Answered.

Equipment financing allows a business to acquire equipment, machinery, instruments, vehicles, technology, without paying the full purchase price upfront. The equipment itself serves as collateral. Monthly payments are made over a fixed term (typically 24 to 84 months), and at the end the business either owns the equipment outright or returns it, depending on the structure chosen.

An equipment loan (Equipment Finance Agreement, or EFA) transfers ownership to the borrower immediately. The equipment appears on the balance sheet and qualifies for Section 179 depreciation. An equipment lease keeps the asset off the balance sheet and typically offers lower monthly payments. At lease end, you return, renew, or purchase at fair market value (FMV) or for $1. The right choice depends on your tax situation and whether you want to own the equipment at the end.

iLease Capital is an independent equipment finance brokerage based in Canoga Park, California, founded by Sidney Cobos. Sidney is a former multi-specialty clinic operator who ran the management company behind physician-owned practices, handling equipment procurement, lease negotiations, staff employment, and vendor relationships so physicians could focus on medicine. iLease Capital works with a network of 50+ lenders to originate and package equipment financing for laboratories, medical practices, manufacturing companies, and industrial operators across the US.

A personal credit score of 650 or above qualifies for most standard programs at competitive rates. Scores between 580 and 649 can often be placed with a 5-10% down payment, a co-guarantor, or additional financial documentation. iLease Capital works with all credit profiles, we match deals to lenders based on the full picture, not just the score alone.

No. iLease Capital runs a soft credit inquiry only. A soft inquiry has zero impact on your personal or business credit score. A hard inquiry only occurs after you have reviewed your approved terms and explicitly authorized it in writing. Most lenders in our network also begin with a soft pull.

Yes. Businesses under 2 years old typically need 3 months of business bank statements, personal bank statements, formation documents, and a personal guarantee from all owners with 20%+ ownership. Additional supporting documents, contracts, license agreements, or a revenue narrative, improve approval odds significantly. App-only programs for deals under $150,000 are available for startups with strong personal credit. See our full guide on new business equipment financing.

App-only deals under $150,000 are often decided same day or within 4-8 hours. Standard deals ($150K-$500K) receive a credit decision within 24 hours. Larger transactions requiring full financial packages typically close within 5-7 business days. Once documents are signed, the vendor is paid by wire, usually within 24 hours of executed documents.

Under $150K: Application + equipment invoice only. $150K-$500K: Add 3 months business bank statements and 2 years business tax returns. $500K+: Add YTD P&L, current balance sheet, business debt schedule, and personal financial statements for all guarantors with 20%+ ownership. You do not need to have everything to start, submit the application and invoice first, and we'll guide you through what else is needed.

An FMV (Fair Market Value) lease offers the lowest monthly payments of any structure. At term end you can return the equipment, renew, or purchase at fair market value. Best for technology or equipment that becomes outdated quickly. FMV leases do not qualify for Section 179 deductions. See our FMV program page.

A $1 buyout lease transfers ownership to you at end of term for $1. Payments are slightly higher than FMV but you own the equipment outright and can claim Section 179 in the year of acquisition. Best for equipment with long useful life that you intend to keep. See our $1 buyout program page.

A sale-leaseback lets a business that already owns equipment sell it to a lender and immediately lease it back, receiving a lump sum of cash while retaining full use of the equipment. It's effectively a way to unlock capital tied up in equipment without selling it or disrupting operations. Read our medical practice sale-leaseback guide.

Equipment Finance Agreements (EFAs) and $1 buyout leases qualify for the Section 179 deduction, allowing you to deduct the full equipment cost in the year it's placed in service. The 2026 deduction limit is $2,560,000. On a $300,000 equipment purchase at a 30% tax rate, that's $90,000 in tax savings. FMV leases do not qualify. Confirm your situation with your CPA. Full breakdown in our Section 179 guide.

Yes. iLease Capital regularly finances used and refurbished equipment, analytical instruments, manufacturing machinery, medical devices, construction equipment. Equipment from dealers, private sellers, and auctions is all eligible. Age, condition, and service contract status are disclosed upfront to match the deal to the right lender. See our used lab equipment financing guide.