Written by Rebecca Fritsch, SVP, Relationship Manager, Commercial Banking
As we enter the fourth quarter, many companies ramp up their equipment purchases, and for good reason. This period presents a unique opportunity to capitalize on strategic planning, financial incentives, like end-of-year vendor discounts, and tax advantages, such as Section 179 deductions.
The Strategic Advantage of Equipment Loans
Equipment loans allow businesses to acquire essential assets without a large upfront cash outlay. Instead, you spread the cost over time, preserving working capital and aligning the expense with the revenue generated by the asset. This helps improve cash flow and better match the loan term with the project’s payback period.
When equipment is added to your balance sheet, you may also benefit from tax deductions for both depreciation and interest. Loans can be structured with either fixed or variable rates, though many businesses opt for fixed rates to allow for predictable, budget-friendly payments.
The Tax Landscape Is Changing
According to the Equipment Leasing & Finance Foundation’s Economic Outlook, recent legislative changes, such as the “One Big Beautiful Bill Act,” may create meaningful benefits for the equipment finance industry. These include:
What Can Be Financed?
Virtually any type of business equipment can be financed, including:
Structuring the Right Loan
Many companies prefer to bundle multiple equipment purchases into one larger loan, often with a draw-down period or post-purchase reimbursement. This allows more time to shop for the right assets, avoid vendor lock-in, and simplify administration.
With strong credit, businesses can finance up to 100% of the equipment cost. Repayment terms are typically structured over five years and can be tailored to match cash flow.
When comparing lenders, be sure to review:
At First Bank, our equipment loan process has been described by clients as “pressing the easy button.” First Bank offers:
What You’ll Need to Provide
To help expedite the process, please have the following documents ready:
If you have any questions or would like help structuring your equipment financing, your First Bank lender is here to assist. Our goal is to make the process seamless, fast, and tailored to your business needs. Connect with the First Bank Commercial Banking team to get started today.
As we enter the fourth quarter, many companies ramp up their equipment purchases, and for good reason. This period presents a unique opportunity to capitalize on strategic planning, financial incentives, like end-of-year vendor discounts, and tax advantages, such as Section 179 deductions.
The Strategic Advantage of Equipment Loans
Equipment loans allow businesses to acquire essential assets without a large upfront cash outlay. Instead, you spread the cost over time, preserving working capital and aligning the expense with the revenue generated by the asset. This helps improve cash flow and better match the loan term with the project’s payback period.
When equipment is added to your balance sheet, you may also benefit from tax deductions for both depreciation and interest. Loans can be structured with either fixed or variable rates, though many businesses opt for fixed rates to allow for predictable, budget-friendly payments.
The Tax Landscape Is Changing
According to the Equipment Leasing & Finance Foundation’s Economic Outlook, recent legislative changes, such as the “One Big Beautiful Bill Act,” may create meaningful benefits for the equipment finance industry. These include:
- Permanent return to 100% expensing
- EBITDA-based interest deduction
- Continued 20% deduction for qualified business income for pass-through entities
What Can Be Financed?
Virtually any type of business equipment can be financed, including:
- Trucks, trailers, and transportation equipment
- IT equipment, computers, and software
- Aircraft and marine vessels
- Office and medical equipment
- Manufacturing, industrial, and construction machinery
- Agricultural and mining equipment
Structuring the Right Loan
Many companies prefer to bundle multiple equipment purchases into one larger loan, often with a draw-down period or post-purchase reimbursement. This allows more time to shop for the right assets, avoid vendor lock-in, and simplify administration.
With strong credit, businesses can finance up to 100% of the equipment cost. Repayment terms are typically structured over five years and can be tailored to match cash flow.
When comparing lenders, be sure to review:
- Interest rates (fixed vs. variable)
- Loan amortization aligned with equipment lifespan
- Upfront fees and documentation requirements
At First Bank, our equipment loan process has been described by clients as “pressing the easy button.” First Bank offers:
- Guidance lines to support purchases throughout the year
- Refinancing options for existing equipment pools
- Standard template loan documents for simple deals
- Customizable legal agreements for loans over $5MM
What You’ll Need to Provide
To help expedite the process, please have the following documents ready:
- Seller or dealer invoices (with serial numbers or VINs)
- Bills of sale
- Certificates of origin or titles (if applicable)
- W-9s for vendors to be paid
- Wiring instructions for vendors
- Proof of property/liability insurance
If you have any questions or would like help structuring your equipment financing, your First Bank lender is here to assist. Our goal is to make the process seamless, fast, and tailored to your business needs. Connect with the First Bank Commercial Banking team to get started today.
Rebecca Fritsch
SVP, Relationship Manager, Commercial Banking
(314) 995-8763
[email protected]
Rebecca Fritsch has over 20 years’ experience in banking and corporate finance. As a trusted advisor, she provides financial solutions to companies, including lines of credit, financial structuring, and payment solutions. Rebecca has a Business Degree from Valparaiso University and a Masters’s Degree in Finance from St. Louis University.