Funding types / Equipment financing

Equipment financing, explained in plain English

Compare the cash you receive, the equipment securing the financing, every fee, total payback, payment, term, and exit terms before you sign.

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In plain English

Equipment financing helps a business pay for equipment, with the equipment itself generally securing the financing. A funding partner may pay the seller or provide funds for an eligible purchase, then the business makes scheduled payments under an agreement. If the business does not meet the agreement’s terms, the partner may have rights involving the equipment, as described in the contract. Goldhour Capital is a brokerage that matches owners with funding partners and explains available offers, but does not set their terms.

How it works

From apply to paid off.

1. Identify the equipment and use

Describe what you plan to acquire, such as a work vehicle, kitchen equipment, or a machine for your shop. Be ready to explain how it fits the business and whether it is new or used.

2. Complete one application

Share business and owner information through Goldhour’s application. These are typical fit markers, not automatic cutoffs.

3. Review possible partner offers

Goldhour matches your request with funding partners. If offers are available, your named specialist can walk through them side by side, including the cash that lands, fees by name, total payback, payment, term, and exit terms.

4. Check the agreement and equipment terms

Before signing, confirm what equipment secures the financing, who owns it during the term, whether a down payment or other costs apply, and what happens if you pay late, default, or want to pay early. The signed partner agreement controls.

5. Complete the purchase and make payments

After the partner’s requirements are met, funds may go to the equipment seller or be handled another way stated in the agreement. Make payments as scheduled and keep records of the agreement and any payoff or release confirmation.

How it is priced

Pricing and structure vary by funding partner, equipment, business, and offer. Read the agreement and compare the amount applied to the purchase or delivered to your business with all fees, the total payback, payment amount and frequency, term, and any down payment or other required costs. Do not compare offers by payment alone. Use Goldhour’s Offer Decoder to translate the figures and identify the terms to verify. Goldhour does not set partner terms.

Reading the offer

Enter the offer in the Offer Decoder and check the amount financed or cash that lands, any down payment, each fee by name, total payback, payment amount and frequency, and term. Then look for the collateral or security section to see exactly which equipment is covered and whether other business assets or guarantees are mentioned. Review late-payment, default, prepayment, payoff, and release terms, including whether an early payoff changes the amount due. Compare those lines against the final agreement, and ask the funding partner to clarify anything that is missing or unclear before signing.

Open the Offer Decoder

Best for

Owners buying equipment that supports revenue, production, service, or day-to-day operations.
Businesses that want financing tied to a specific equipment purchase and understand that the equipment may secure the agreement.
Owners who can plan for scheduled payments and have reviewed how those payments fit their cash flow.
Businesses comparing partner offers and willing to check total payback, fees, collateral, and exit terms, not just the payment.

Not ideal when

The equipment’s useful life may be shorter than the payment term or its value is uncertain.
A fixed payment schedule could strain cash flow during seasonal or uneven revenue periods.
You need funds for general operating costs rather than a specific equipment purchase.
You are not comfortable with the equipment being at risk under the agreement if payment or other obligations are not met.
The agreement’s ownership, collateral, payoff, or default terms remain unclear to you.

What it does well

May help spread the cost of a specific equipment purchase over scheduled payments.
The equipment being financed may serve as security, which can make the structure distinct from financing secured by broad business assets. Confirm the exact collateral in the agreement.
Can connect the cost of equipment with the period in which the business uses it, depending on the term offered.
Goldhour can explain partner offers side by side before you sign, including named fees and exit terms.

Trade-offs to weigh

The equipment may be repossessed or otherwise subject to partner remedies if the business defaults, as permitted by the agreement and applicable law.
Payments and the term are obligations even if equipment use, revenue, or resale value changes.
The agreement may include a down payment, fees, insurance requirements, restrictions, or other conditions. Confirm each in writing.
Early payoff may not reduce the amount due as much as expected, or may follow specific procedures. Check the payoff language.
Some agreements may include additional collateral or owner obligations beyond the equipment. Do not assume the equipment is the only security.

Compared to the others

How it stacks up.

vs. Equipment leasing

Equipment financing commonly leads to ownership under the agreement after required payments and conditions are met, while a lease generally grants use of equipment under lease terms. Ownership, purchase options, end-of-term duties, and tax treatment depend on the actual agreement. Have an accountant review tax questions.

vs. Business term financing

Equipment financing is tied to an equipment purchase and may be secured by that equipment. A general business term product may have a different permitted use, collateral package, payment schedule, or payoff structure. Compare the actual contracts.

vs. Business line of credit

A line of credit generally allows eligible businesses to draw funds as needed up to a limit, while equipment financing is generally organized around a specific purchase. Availability, fees, collateral, and repayment rules vary by agreement.

vs. Revenue-based financing

Revenue-based financing typically uses an agreed method tied to business revenue, while equipment financing generally has scheduled payments and equipment-related security. The structures and legal terms differ, so compare payment mechanics, total cost, and remedies in each agreement.

Ask before you sign

Six questions worth asking.

What exact equipment secures the agreement, and does any other business property or owner guarantee also apply?
How much goes to the seller or lands in my account after any down payment and fees?
What is the total payback, and what is every fee called?
What is the payment amount, frequency, due date, and full term?
What are the late-payment and default consequences, including any right to take or sell the equipment?
How does early payoff work, what amount would be due, and what steps confirm the security interest has been released?

Have these ready

Equipment details, including seller information, purchase price, and whether the item is new or used.
A purchase quote, invoice, or other documentation available for the equipment.
Basic business details and recent revenue information for the application.
Owner information that the application requests.
A realistic view of cash flow, including existing payment obligations and seasonal changes.
Any offer or agreement you want help understanding in the Offer Decoder.

Questions

What is equipment financing?

It is financing arranged for a specific equipment purchase. The equipment commonly secures the agreement, and the business makes payments under the partner’s terms.

Does the equipment secure the financing?

Often, yes. The exact collateral is defined in the agreement. Check whether the security covers only the equipment or also includes other property or owner obligations.

Who provides equipment financing through Goldhour?

Goldhour Capital is a brokerage. We match business owners with funding partners, and the partner sets the offer terms and provides the financing.

How much can a business seek?

Funding may be available up to $2M, depending on the business, equipment, partner, and offer. This is not a promise that a particular amount will be available.

What businesses does Goldhour usually work with?

Owners we usually work with have been in business for at least a year, monthly revenue of $50K or more, and credit of 550 or higher. These are typical fit markers, not automatic rejections or guarantees of an offer.

How are payments and total cost determined?

The funding partner sets the terms. Review the amount applied to the purchase or delivered, every fee, total payback, payment amount and frequency, and term in the offer and final agreement.

Can I use equipment financing for used equipment?

Some partners may consider used equipment, but eligibility and terms vary. Ask what condition, age, appraisal, seller, and documentation requirements apply.

Can I pay the agreement off early?

That depends on the contract. Check how payoff is calculated, whether any conditions or charges apply, and how the partner confirms that its security interest has been released.

Other funding types:Bridge funding Line of credit Consolidation Invoice factoring Revenue-based funding SBA loans Term funding

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One short application. One company calls you. Every offer laid out in plain English before you sign.

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