Equipment Loans

The tools that power your business.

Having the right equipment to keep your business running efficiently is essential. Getting financing for that equipment shouldn’t be difficult. Let Southern Bank customize financing that aligns your payments with your cash flow.

Combine harvesting wheat


Need an upgrade, improvement, or replacement?

At some point in running your business, you’ll find it necessary to upgrade, improve, or replace various pieces of equipment. Taking out an equipment loan specifically to purchase hard assets for your business can mean the difference between success and failure. Unlike other types of business loans, the equipment itself acts as collateral. Equipment loans are typically financed as term loans with amortizations that will not exceed the life of the equipment.

Reasons to get a business equipment loan:

  • To increase your productivity
  • To update or replace outdated equipment
  • To get equipped to handle bigger jobs

Financing for equipment of any size and purpose.

Every business will have different needs, but here’s a list of items generally considered to be equipment:

  • Medical and dental medical machinery
  • Commercial vehicles
  • Computers, monitors, printers, copiers
  • Specialized machinery
  • Construction equipment and tools
  • Agriculture specific equipment
  • Heavy industrial equipment
Farmer using tablet


A few things to think about when considering an equipment loan.

Quick Approval – Generally, equipment loan decisions are made rather quickly. That means you can get approved and have your funds faster, so you can purchase or replace the equipment you need.

Tax Deductible – Check with your accountant or tax attorney for any possible tax deductions that may be available.

Keep Working Capital Available – Imagine one of your service vehicles breaks down and needs to be replaced. Or the oven in your restaurant goes out. Or you need to replace your office computers. Instead of spending cash from your business revenues to pay for these items, use an equipment loan to replace or repair these pieces of equipment and keep your working capital for your other business needs.

Flexible Payment Schedule – We offer flexible payment options that can fit your business needs.


Is an equipment loan right for you?

In general:

  • A down payment of 20%-30% is usually required for most equipment loans.
  • Collateral for the loan is the item or items that you purchase with the loan.
  • A business plan may be required.
  • Typically, we will want to review 3 years of financial information.