Small Business Equipment Loans

Compare different loan offers with Savvy to find the best one for your small business to purchase equipment.

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, updated on July 26th, 2023       

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The features and benefits of small business equipment loans

No asset security required

Perhaps the most important factor for small business loans is that security isn’t required, as we partner with lenders offering small unsecured business loans which are more accessible.

Choose a comfortable repayment term

You get the power to decide your loan term to ensure your business is capable of comfortably supporting its repayments, with potential periods ranging from three months to five years.

Borrow from $5,000 and up

Unsecured finance is highly flexible when it comes to the amount you’re able to borrow, with minimums of $5,000 and a maximum of up to $500,000 available with some lenders.

Buy any type of equipment

There aren’t any restrictions on how you use the loan, only that it must be for business purposes, which means you can buy any equipment you like, large or small.

Secure an affordable loan

With a great deal of competition in the market when it comes to business finance, you can take advantage with a loan offering a low interest rate and low or no fees to boot.

Make additional repayments and save

Many lenders also enable you to pay above and beyond the minimum required amount to help you maximise your overall savings should your business become able to do so.

Types of business loan

Why compare business loans through Savvy?

How to compare small business equipment loans

Your small business equipment loan questions answered

Am I able to use my loan for other expenses aside from the equipment purchase?

Yes – unsecured business loans can be used for any number of purposes in addition to the purchase of your asset. You can request to borrow any amount you’re capable of borrowing, regardless of whether that’s more or less than the cost of the machinery you’re looking to buy. You might want to cover other expenses in addition to the equipment, such as fitting out your shop or adding to your business’ overall cashflow.

Should I look at equipment finance for my small business?

Equipment finance is another option when it comes to purchasing business equipment. This is a secured loan which utilises the asset itself as collateral for the finance deal, meaning the size of your loan will be tied to the cost of the equipment. By doing this, you can access lower interest rates and potentially longer repayment terms of up to seven years. However, these loans are less flexible in terms of what they can be used for, limiting themselves to the purchase of the asset only. If you don't have an eligible asset available, you'll likely need to apply for a standard business loan as a self-employed owner

Can I lease my equipment instead?

Yes – there are a range of different leases available if you’re not wanting to commit to the purchase of your equipment. Leases are less expensive, as you’re not covering the cost of purchasing the asset in your payments, and come with added benefits such as up to 100% of your repayment being tax-deductible. Savvy can help you find out more about different lease types and secure a great deal for your business.

What factors affect my loan’s interest rate?

There are a variety of individual variables which could impact your interest rate, such as:

  • The size of the loan you’re after
  • Your proposed loan term
  • Your business’ current cashflow and available revenue
  • Your business’ trading time
  • You and your business’ credit scores
Are equipment loans available if I have a startup business?

Yes – you can still get an equipment or machinery loan if you’re a new business. However, equipment loans for a startup business are generally more difficult to obtain, as they’re seen as being riskier than a loan to an established business. As such, you’re likely to find that these loans come with more restrictions on borrowing and higher interest rates, as well as requirements for business owners to meet (such as experience running a business in the past).

Will seasonal income impact my business’ approval chances?

Not really – seasonal businesses are as eligible to borrow as any other business. Provided you’re capable of maintaining your repayments all year round, there shouldn’t be too many issues taking out a loan. Some lenders will be able to provide you with a specialised seasonal payment plan which skews a greater proportion of your repayments away from your off-season months, but this isn’t always the case.

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