When it comes to equipment financing, there’s no shortage of misconceptions. Unfortunately, those myths can hold businesses back from smart, strategic growth.
Maybe you’ve heard that financing is only for startups, or that the process is slow, expensive, or rigid. Maybe you’re unsure if your credit is good enough, or you’ve assumed that ownership isn’t possible if you finance equipment.
These outdated equipment financing ideas are more than just myths. They can alter your thinking to the point that it stalls your momentum and restricts your ability to scale, even when your business is thriving.
At Team Financial Group, we help business owners achieve their goals every day with fast, flexible, and customized equipment financing options for companies of all sizes.
Let’s take a closer look at some common equipment financing misconceptions and what the truth really is. And if you’d like to speak with one of our experts now, don’t hesitate to contact us.
Myth 1: Only Businesses with Great Credit Scores Qualify for Financing
Traditional banks often rely on rigid credit score thresholds. But independent lenders like Team Financial Group understand that your credit score is only one part of your financial story.
We look at the whole picture: your company’s track record, current operations, and future goals. For businesses with a solid foundation but less-than-perfect credit we can often create a financing solution that makes sense.
In short: Don’t assume you’re disqualified just because your credit score isn’t perfect. Talk to a financing partner who will listen to your story and explore the possibilities with you.
Myth 2: Equipment Financing is Too Expensive
Some business owners assume that paying cash is the cheapest option. But in many cases, financing provides greater value over time. Here’s why:
- You preserve working capital.
- You maintain liquidity for emergencies or opportunities.
- You may qualify for tax deductions (like Section 179) that significantly reduce your net cost.
- You can often get competitive interest rates with the right lender.
In fact, a report from the Equipment Leasing & Finance Foundation found that 47% of businesses choose financing to optimize their cash flow, because staying cash-healthy is critical to long-term success.
Myth 3: Only New Businesses Use Financing
This one couldn’t be further from the truth. Established businesses regularly use equipment financing as a strategic tool to manage growth, update aging equipment, or expand into new capabilities.
Whether you’ve been in business for five years or 50 years, financing helps you:
- Avoid tying up capital in depreciating assets
- Keep equipment current and efficient
- Scale faster when new opportunities arise
We’ve partnered with long-standing companies across industries—from manufacturing and logistics to healthcare and construction—who rely on equipment financing to stay agile and competitive.
Financing isn’t just for getting started, but for staying ahead as well.
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Myth 4: Financing Means You Don’t Own the Equipment
Another common misunderstanding is that financing always means leasing, and leasing means you never own the asset. That’s simply not true.
We have different types of financing structures available, including:
- Equipment financing agreements/$1 buyout leases, that work like a business loan with fixed monthly payments. You own and depreciate the equipment with no further obligations once the term is up.
- Equipment leases/fair market value leases, which carry a lower payment but you do not own the equipment during the lease term. Once the term has ended, however, you will have the option to purchase the equipment.
The point is: Financing doesn’t mean having to give up ownership. You have options. At Team Financial Group, we’ll walk you through your choices and help you select a structure that fits your long-term goals.
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Myth 5: The Equipment Financing Process Takes Too Long
Time is money, and many business owners worry that financing will delay their ability to act. That may be true with traditional lenders, where the process can take 60 to 90 days.
But with the right financing partner, approvals can happen fast. At Team Financial Group, we’ve approved and funded loans in less than 24 hours.
We keep our application process simple and efficient so you can act quickly whether you’re replacing a downed machine, bidding on a new contract, or ramping up production.
Myth 6: Offering to Finance Equipment Doesn’t Affect Sales
If you’re a vendor or dealer selling commercial equipment, you might think your customers will figure out financing on their own. But here’s the truth: most of them are working within a monthly budget.
When you offer a financing option at the point of sale, you shift the conversation from total cost to monthly affordability. That makes decision-making easier for your buyers and increases the likelihood of closing the sale.
Nearly 80% of U.S. companies use some form of financing to acquire business equipment. Offering that option up front can lead to:
- Faster sales cycles
- Larger deal sizes
- Repeat business from customers who appreciate your flexibility
We partner with vendors to offer fast, hassle-free financing options that support their sales goals and improve customer satisfaction.
Myth 7: Equipment Financing Is Not Flexible
Every business is different, and a good financing partner will accommodate those differences in the plans they offer. If you’ve been turned off by one-size-fits-all solutions in the past, know that today’s equipment financing is more customizable than ever.
At Team Financial Group, we create plans that include:
- $0 down/100% financing
- Seasonal payments
- Step-up or deferred payments
- Lease or loan options with early buyout flexibility
We believe that equipment financing should work for you, not the other way around. And because we’re not a traditional bank, we’re not constrained by the same rigid formulas.
Why Equipment Financing Matters for Growing Businesses
As your business scales, you’ll likely face moments when demand outpaces your resources. You’ll need to hire, buy equipment, or fulfill contracts before payments hit your account.
Financing allows you to bridge that gap. It turns a large upfront cost into a manageable monthly investment. That could mean the difference between turning away business or taking it on with confidence.
Let’s Bust Equipment Financing Myths Together
At Team Financial Group, we help companies grow smarter by building equipment financing strategies that make sense. Whether you’re adding one machine or upgrading your entire fleet, we’ll work with you to:
- Understand your goals
- Customize a flexible financing plan
- Move quickly, without unnecessary red tape
It’s time to stop letting old myths hold you back.
Ready to talk through your equipment needs? Contact us today or call 616-735-2393 to speak with a real person who’s ready to help.
Let’s make equipment financing work for your business—on your terms.
References
Equipment Leasing & Finance Foundation. (2019). 2019 Equipment Leasing & Finance Industry Horizon Report. Retrieved from https://www.store.leasefoundation.org/cvweb/Portals/ELFA-LEASE/Documents/Products/2019HorizonReport.pdf