Equipment Loans for Industrial & Manufacturing Businesses
An equipment loan is fixed-rate, fixed-term financing secured by the machine you’re buying. You own the equipment from day one. IEC holds a lien on that specific machine until the note is satisfied, and there’s no lease to unwind or purchase option waiting at the end of the term.
Industrial Equipment Capital funds business equipment loans on a one-page application, with credit decisions in as little as 4-8 hours from a team that has spent decades financing machine tools and manufacturing equipment.
Why Choose an Equipment Loan with IEC?
Every equipment financing company will quote you a payment. Here’s what changes when you finance a machine with IEC.
There’s no lease structure and no end-of-term decision to make. The equipment is recorded on your balance sheet as a fixed asset when it’s delivered. The amount owed is a liability on the balance sheet. Once you make the final payment, IEC releases its lien, and the machine is yours outright.
Your rate locks at signing and holds for the life of the loan. Equal monthly payments over a 24-84 month term make it simple to forecast a machine’s cost relative to the revenue it generates.
Because you hold the asset, you can take depreciation on the equipment and deduct the interest expense on the loan. Run the numbers on our equipment loan calculator, then confirm the specifics with your tax advisor.
Banks often tie a commercial equipment loan to your existing credit line, and once exposure crosses a certain threshold, they can require quarterly reporting or approval before you borrow again. Financing with IEC keeps your options open.
Machine tool financing accounts for more than half of IEC’s loan volume. We know what your equipment is worth and how a financing delay affects a production schedule.
Most credit decisions come back in as little as 4-8 hours through our one-page application. Loans up to $350,000 are typically application-only, with no full financial package required.
Loan terms range from two to seven years, structured around your cash flow rather than a lender’s template. If the lowest possible rate matters more to you than early payoff flexibility, or the reverse, we build the note accordingly.
IEC finances single-machine and multi-machine acquisitions, ranging from $25,000 on the low end to transactions in the millions. As your shop floor grows, the financing scales with it.
Manufacturing equipment financing works better when the lender understands the equipment. Apply for your equipment loan today.
What Equipment Can You Finance with an Equipment Loan?
We work with small shops and Fortune 500 operations alike for CNC machine financing, laser cutter and fabrication equipment financing, and forklift loans, including funding injection molding machines, 3D printers, boom and scissor lifts, and paving and heavy construction equipment.
CNC Machines and Machine Tools
Material Handling and Forklifts
Lasers and Fabrication Tools
Additive Manufacturing Machines
Injection Molding Equipment
Paving and Heavy Equipment
Boom and Scissor Lifts
Don’t see your equipment listed? Contact us today for more information.
Frequently Asked Questions About Equipment Loans
Below are the questions we hear most often from manufacturers weighing a loan against a lease. For a broader look at how the industry works, start with our guide to equipment financing.
An equipment loan works much like a car loan. You make a set number of equal monthly payments, typically 36-84 months, at a rate that’s fixed for the full term. The equipment is yours from day one and shows on your balance sheet as a fixed asset, with the loan recorded as a liability. IEC secures the loan against that specific machine, so there’s no purchase option or residual to settle at the end. You may be able to claim depreciation and deduct interest expense, though your tax advisor should confirm how that applies to your business.
An equipment loan makes you the owner from the start, while a lease keeps title with the lender unless you exercise a purchase option. That distinction drives the lease vs. buy equipment decision for most manufacturers. A capital lease ends with a buyout. An operating lease works more like a long-term rental with a purchase price set in advance, and equipment rentals cover shorter-term needs. There’s no universal right answer. Most customers decide with their CPA based on how they want the equipment treated on their books.
IEC writes equipment loans with terms of two to seven years, which covers about 98% of the loans we fund. Rates are fixed for the life of the loan in every case, so your payment never moves with the market. Equipment loan rates depend on your credit profile, the machine, and the term you choose, so contact us for a quote.
Yes. Our equipment financing calculator estimates what a purchase could save you under Section 179 and bonus depreciation. For an actual monthly payment estimate, send us the equipment cost and the term you want, and we’ll come back with real figures, usually the same day. Call (909) 596-2627 if you’d rather walk through it with someone.
No. IEC only takes a lien on the specific piece of equipment being financed. Banks frequently take a blanket lien across your company’s assets when they fund equipment, especially if you already carry a line of credit with them. That gives the bank more control as your exposure grows, sometimes triggering quarterly reporting requirements or approval rights over additional borrowing. An equipment-specific lien from IEC leaves your bank relationship and your credit line untouched.
You own the equipment free and clear at the end of an equipment loan term. Once the final payment posts, IEC releases its lien, and you own the equipment. Businesses that know they’ll keep a machine for its full working life often prefer the loan over a lease for that reason.
Yes, though it depends on which bank funds your loan. Most IEC equipment loans are written as simple interest notes, which means you can pay the balance off after 12 months with no penalty. Some carry a prepayment penalty of roughly 5%. If flexibility matters more to you than the lowest possible rate, IEC can structure the note so that early payoff is penalty-free within a 12- to 24-month window. That prepayment cost can also be built into the price of your next equipment purchase. We tailor the structure around what matters most to your business.
IEC generally finances equipment loans starting at $25,000. On the high end, we’ve funded loans over $14 million, including multi-machine acquisitions for growing shops. If your equipment needs fall under $25,000, reach out, and we’ll point you toward a structure that fits.
No. IEC Financial funds manufacturing equipment loans for businesses across the U.S. from our office in La Verne, California. The process runs by phone and email, start to finish, and documentation can be emailed or sent overnight for same-day signing. In equipment finance, knowing the machine matters more than sharing a zip code.
There’s no strict time-in-business requirement, although companies operating two years or less get a closer look, and more financial disclosure is involved. Startups carry most of the historical risk in equipment finance, so IEC weighs the strength of your incoming business and contracts rather than relying only on past financials. Loans up to $500,000 are typically application-only, and if your credit report raises a question on an otherwise solid deal, we’ll ask for a full financial package instead of automatically declining. Start with our one-page credit application or call (909) 596-2627.
