Equipment financing lets a business buy or lease machinery, vehicles or clinical and kitchen equipment, with the equipment usually serving as collateral. Sandland Credit, a small-business funding broker in Grand Junction, CO, explains equipment loans, leases and equipment finance agreements for Mesa County contractors, restaurants and practices, and connects them with lending partners, who make the credit decision and set terms.
| Built for | A specific asset: machinery, work vehicles, kitchen lines, clinical systems |
|---|---|
| Structures | Equipment loan, lease, or equipment finance agreement (EFA) |
| Security | Usually the equipment itself, often recorded with a UCC filing |
| Mesa County construction | 622 employer establishments in 2023 (Census CBP 2023) |
| Decision and pricing | Made by the lending partner, not Sandland Credit |
| Office | 516 Main St, Grand Junction, CO 81501 · (970) 238-2048 |
Three ways to pay for equipment over time
| Equipment loan | Lease | Equipment finance agreement | |
|---|---|---|---|
| Who owns it during the term | You, with the lender holding a lien | The lessor | You, with the finance company holding a security interest |
| At the end | Paid off; lien released | Return it, renew, or buy it on the lease's terms | Paid off; you keep it |
| Payments | Principal and interest on a schedule | Rent for the term | Fixed payments; the contract may not state an interest rate |
| Often chosen for | Equipment kept for most of its working life | Equipment replaced often, or tested before buying | Simple fixed-payment ownership |
Leases come in different forms. Some end with a nominal buyout and behave much like a loan; others end with a purchase option at fair market value, which keeps payments lower but leaves the final cost uncertain. Ask which kind you are being offered. How each is treated for tax purposes is a question for your accountant.
Equipment common to Mesa County sectors
The county's largest sectors by number of employers each run on equipment. Construction had 622 employer establishments in Mesa County in 2023, retail trade 587, health care and social assistance 535 and accommodation and food services 370 (U.S. Census Bureau, County Business Patterns 2023). Typical requests follow those lines:
- Contractors: skid steers, mini excavators, compact track loaders, trailers, generators, compressors and work pickups or vans. Contractor financing covers draws and equipment together.
- Restaurants: walk-in coolers, hoods and ventilation, ranges, dish machines and point-of-sale systems. See restaurant financing.
- Medical and dental practices: dental chairs and delivery units, imaging, sterilization, exam and lab equipment, and practice software. See medical and dental practice financing.
New or used
Used equipment can be financed, but partners look harder at it. Expect questions about age, hours or mileage, condition and where it is being bought. Purchases from a dealer are usually simpler than private sales, where the lender will want proof of title and that no one else has a lien on the machine. A pre-purchase inspection protects you as much as it reassures the lender.
How to finance construction equipment
- Get a written quote with the make, model, year, serial number if used, price, taxes and delivery.
- Decide how long you will keep it. If you will run it for its whole working life, a loan or EFA usually makes sense; if you replace it every few seasons, look at a lease.
- Match the term to the asset's useful life. Paying for a machine long after it is worn out is a common mistake.
- Check for existing liens on your business. A blanket lien from another lender can complicate a new equipment loan. Searching Colorado UCC records shows how.
- Ask about the end of the term, including any balloon payment or buyout, before you sign.
Equipment loan or line of credit?
An equipment loan funds one asset and is secured by it, with payments spread over the asset's useful life. A line of credit is general-purpose and revolving. Using a line for a large machine ties up the line for months or years, leaving less room for payroll and materials when you need them. Many contractors keep the two separate: equipment on equipment financing, operating costs on a line. Some equipment loans end in a balloon payment; how balloon payments work explains what to plan for.
Questions to ask the seller and the lender
- Does the price include delivery, installation, training and sales tax, and will the financing cover those costs or only the equipment itself?
- Who holds the title during the term, and how is the lender's interest recorded?
- Is insurance on the equipment required, and must the lender be named on the policy?
- What happens if the equipment is damaged, stolen or needs replacing before the term ends?
Soft costs such as installation and training are sometimes financed and sometimes not. Knowing which before the quote is final avoids a gap you have to cover from cash.
What lending partners usually review
- The quote or invoice, and for used equipment its age and condition.
- Recent business bank statements and time in business.
- Owner credit; many partners also ask for a personal guarantee.
- For newer businesses, a down payment may be part of the conversation. Funding a Colorado LLC in its early years covers that stage.
Sandland Credit is a broker, not a lender.
By Sandland Credit · Updated