Equipment purchases
How to buy business equipment without draining cash flow
Buy equipment without draining cash flow by spreading the cost over the equipment's working life with equipment financing, instead of paying the full price from operating cash.
Last updated: November 2026
Should I pay cash for equipment or finance it?
Pay cash only if your forecast stays above your cushion afterward. Otherwise, financing spreads the cost into payments that line up with the revenue the equipment earns, and the equipment usually serves as collateral. 1West lists equipment financing from $10K to $5M with terms of 5 to 60 months, as of November 2026.
Facts
Equipment financing through 1West at a glance
- Rate listed
- As low as 7%
- Term listed
- 5 to 60 months
- Amount listed
- $10K to $5M
- Time to fund listed
- 1 week
- Equipment
- New or used
- Eligible types
- Most equipment, including software
1West describes equipment financing as a loan or lease used to buy a specific piece of business equipment, where the equipment itself usually serves as collateral. That is why lenders can often approve businesses that would not qualify for an unsecured loan.
One limit 1West states plainly: no leasebacks, meaning you cannot lease back equipment the business already owns. Figures shown are from 1west.com, November 2026, and depend on the lender and your business. Read 1West's equipment financing page.
This page is part of the 1West guide to how to improve small business cash flow, which walks through every fix in order.
Procedure
How equipment financing works, step by step
Step 1: Get a quote
Ask the vendor or dealer for a quote or invoice for the equipment, new or used.Step 2: Apply once
Submit one application with 1West. Its ABLE platform matches your business with lenders whose equipment programs fit your credit, revenue, and the asset.Step 3: Compare offers
Review rates, terms, and any down payment side by side, and choose the structure that fits your cash flow.Step 4: Get the equipment
In most cases the lender pays the vendor directly, so the equipment can go to work right away.Step 5: Repay over time
Make fixed payments over the term. Once paid off, the lender releases its claim on the equipment.
Comparison
Cash, equipment financing, or working capital?
| Method | Effect on cash this month | Collateral | Best when |
|---|---|---|---|
| Pay cash | Full price leaves at once | None | Forecast stays above cushion afterward |
| Equipment financing | Down payment, if any, then fixed payments | Usually the equipment | Equipment earns revenue over years |
| Unsecured working capital | Lump sum in, frequent payments out | None required | Small purchase with fast payback |
| SBA loan | Longer payments | Varies | Large purchase bundled with other needs, and you can wait |
Checklist
What to prepare before you apply
Documents
- Vendor quote or invoice for the equipment
- Four months of business bank statements (1West general requirement)
- Basic business and owner information
- For larger amounts, lenders may ask for tax returns or financial statements
Questions to ask each offer
- What is the total amount repaid, including fees?
- Is a down payment required?
- Is it a loan or a lease, and who owns the equipment at the end?
- Are there prepayment rules?
Related guides
Keep going
- Short-term vs long-term financingHow to match the financing term to the cash need, with a side-by-side table.
- Cash flow statement for small businessA sample cash flow statement, the three sections, and the formula.
- Cash flow forecast templateA 13-week forecast template, a downloadable CSV, and a cash gap worksheet.
FAQ
Common questions
How does equipment financing work?
Equipment financing is a loan or lease for a specific piece of business equipment, and the equipment usually serves as collateral. You get a vendor quote, apply, compare offers, and the lender typically pays the vendor directly. 1West lists equipment financing from $10K to $5M with terms of 5 to 60 months, as shown on 1west.com in November 2026.
See this answer in the full FAQShould I use short-term or long-term financing?
Match the term to the need. Short-term financing fits needs that resolve within months, such as a seasonal inventory build or waiting on a large invoice. Long-term financing fits assets and projects that pay back over years, such as equipment, property, or an expansion. Using short-term money for a long-term purpose is a common cause of repayment strain.
See this answer in the full FAQHow can you reduce your total loan cost?
Reduce total loan cost by borrowing only what you need, choosing the shortest term you can comfortably repay, comparing total dollars repaid rather than the payment, and asking about origination fees and prepayment rules. Improving your credit and cleaning up bank statements before applying can also help. Comparing several offers side by side shows real cost differences.
See this answer in the full FAQHow do I get a business loan with poor credit?
Start by knowing your exact score and what each lender category requires. 1West’s general guideline is a 600 or higher FICO score, so owners below that may want to improve credit first. Options that weigh collateral or invoices, such as equipment financing or receivables financing, may be more accessible. Paying down card balances and fixing report errors can help.
See this answer in the full FAQWhat documents do I need to apply for business financing?
Most applications start with recent business bank statements, basic business information, and owner details. 1West’s general requirement is four months of business bank statements. SBA loans and larger loans typically add business and personal tax returns, financial statements, a debt schedule, and sometimes a business plan. Having these ready before applying shortens the back and forth.
See this answer in the full FAQHave a quote in hand? Compare equipment financing with 1West.
One application through ABLE, 1West's Automated Business Lending Engine, available 24/7. 1West generally looks for six months in business, four months of business bank statements, $20,000+ monthly revenue, and a 600+ FICO score. Eligibility and final terms depend on the product and lender.