Small business loans for equipment

• Cash flow challenge: Small businesses often need to invest in equipment upfront while protecting day-to-day cash flow.

• Perfect for: Small businesses planning to purchase equipment, machinery, vehicles, or technology and exploring different ways to spread the cost.

Novuna helps businesses access loans for equipment, offering transparent funding options designed around your system, affordability, and business goals. Speak to our experts today to find a great fit for your situation.

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How small business loans for equipment work

A small business loan provides a lump sum of funding that can be used to purchase equipment outright. The loan is then repaid over an agreed period through fixed monthly repayments.

In practice, this means:

• The business owns the equipment from day one.

• Repayments are predictable, making budgeting easier.

• The loan can sometimes be used for mixed purposes, not just equipment.

For businesses that want flexibility in how funds are used, a loan can be an attractive option.

Common types of equipment funded by business loans

• Machinery and manufacturing equipment

• Vehicles and commercial transport

• IT hardware and software

• Office fit-outs and specialist tools

• Medical, catering, or trade-specific equipment

The suitability of a loan often depends on the lifespan of the equipment and how quickly it contributes to revenue.

When a business loan may be suitable for equipment

A business loan may be a good fit if:

• You want to own the equipment immediately.

• The equipment will be used for multiple purposes.

• You need funding for equipment and other costs at the same time.

• You prefer fixed repayments without asset-specific agreements.

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When equipment finance may be a better option

Equipment finance may be more suitable when:

• The equipment is high-value and new.

• You want repayments to align closely with the asset’s working life.

• Preserving working capital is a priority.

• You’re investing in vehicles, machinery, or specialist tools.

Other funding options to consider

Depending on your business model, other funding options may also play a role:

• Working capital facilities to support cash flow alongside equipment investment
• Short-term funding to bridge gaps between purchase and income generation
• Asset-based lending for businesses with multiple assets

Understanding how different funding types interact can help businesses avoid over-committing cash flow.

Things to consider before funding equipment

Before choosing a funding route, small businesses often consider:

• The total cost of borrowing over time
• The expected lifespan of the equipment
• How repayments fit with cash flow cycles
• Whether flexibility or ownership is more important

Careful planning helps ensure equipment investment supports long-term growth.

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we support small businesses by helping them understand the different ways equipment can be funded.

Speak to our experts today and find a great fit for your situation.