If you run a small business with limited amounts of cash, the idea of obtaining equipment can seem daunting. But do not fret: This article goes over several methods for obtaining the equipment your business needs.

Small Business Grants

Grants are the holy grail of equipment financing: They do not accrue interest payments, and they do not need to be repaid. However, they can be difficult to obtain, often involving lengthy, intricate application processes and requiring the money be spent in a certain way. Still, it can be worthwhile to see if your business is eligible for a grant from the federal, state, or local levels of government. The Grants.gov website is a good starting point. If your business is not eligible, or if potential grants are not big enough, you may need to seek out other forms of equipment financing.

Secured Loans

To obtain equipment financing in the form of a loan, it may be necessary to put up collateral before a lender will extend you money—that is, making the loan secured. That collateral can include accounts receivable and assets the business already owns. Secured loans are more common when a business has a short, less impressive credit history and somewhat flawed application.

Unsecured Loans

Businesses on more sound financial footing may be able to obtain unsecured loans for equipment. This is a form of financing that does not require collateral. A potential tradeoff may be a higher interest rate.


Another way to obtain equipment is by leasing it. It works somewhat like renting an apartment: Your business agrees to the lease and makes payments on it throughout the lease term. This can be an especially beneficial arrangement if the equipment is likely to be outdated in the near future. However, if you are interested in using the equipment longer, your business can renew the lease or even explore lease-to-own options.

Want more tips on business financing and other topics? Take a look at Value Capital Funding’s other blog posts.