Refinance Equipment Debt Around Your Needs

How Equipment Refinancing Works

Equipment refinancing typically involves replacing or restructuring an existing equipment loan with a new financing arrangement that better fits your business’s needs. Depending on your situation, refinancing may help adjust your monthly payment, change the repayment timeline, consolidate debt, or access available equity in the asset.

Before applying for refinancing with any lender or financial partner, it’s important to evaluate your existing loan terms against your financial goals. Questions to consider include:

• How do your loan payments affect your monthly cash flow?

• Are you paying more interest than expected?

• Are there upcoming expenses to take into consideration?

• Does the loan have a prepayment penalty clause you would prefer to remove?

Your answers can help determine whether refinancing may be worth exploring and what type of refinancing structure could better support your needs.

Who Equipment Refinancing May Be Right For

Equipment refinancing may be available to businesses and qualifying individuals with existing financing on eligible machinery, vehicles, trailers, RVs, or other equipment. It can be a fit for borrowers who want to revisit current loan terms, adjust monthly payments, consolidate equipment debt, or access capital based on the equity in an asset.

Because equipment loans often span several years, a loan that worked at the time of purchase may not always fit your current financial situation. Some scenarios include:

• A transportation business owner seeking a commercial truck refinance to free up capital for an overhaul of a sleeper truck instead of buying new.
• A contractor who needs to simplify his debt structure by combining his construction equipment loans for a single monthly payment.
• A ranch owner looking for horse trailer refinancing to help weather a period of low commodity prices.
• A tree care professional wanting to change from a variable interest rate on his chipper truck loan to a fixed rate and avoid a large “balloon” payment at the end of the term.
• An RV enthusiast wanting to refinance a motorhome loan with a shorter term, so she can pay off the vehicle faster and save on total interest fees.
• A winery owner refinancing vineyard equipment to put additional capital toward a tasting room expansion.
• An equipment rental business refinancing loaders, lifts, or utility vehicles to better align payments with seasonal demand.

Refinancing options can vary depending on the equipment, current loan terms, asset value, and lender requirements. A CurrencyFinance specialist can help you understand what may be available for your situation.

Benefits of Equipment Refinancing

The right equipment loan can support your business, but outdated terms can strain your budget over time. Equipment refinancing gives businesses and qualifying individuals an opportunity to revisit existing financing and explore options that may better align with current cash flow, equipment needs, and long-term financial goals. Benefits of equipment refinancing may include:

Lower Monthly Payments

Refinancing may help reduce your monthly loan payments and free up cash flow by either securing a lower interest rate or extending the loan term.

Access Additional Capital

If your equipment has available equity, refinancing may allow you to access additional working capital while keeping the asset in use. Funds can support repairs, upgrades, expansion plans, or other business needs.

Adjust Loan Terms

Equipment refinancing can also help borrowers consolidate multiple loans into a single monthly payment, switch from a variable to a fixed rate, adjust the repayment timeline, or revisit loan terms that no longer fit their financial situation.

What To Consider Before Applying For Equipment Refinancing

Equipment refinancing can be a useful way to revisit existing loan terms, but it may not be the right fit for every situation. Before applying, consider how your current loan, equipment value, payoff amount, and long-term financing goals may affect your options.

• Lower Payments May Affect Total Cost

  • Refinancing may help lower your monthly payment, but extending the repayment term can increase the total amount paid over time. Review the full cost of refinancing, not just the monthly payment.

• Current Loan Terms Matter

  • Your existing loan may include payoff requirements, fees, liens, or prepayment penalties. Understanding your current terms can help you decide whether refinancing makes financial sense.

• Equipment Value Can Impact Options

  • Lenders may review the equipment’s age, condition, mileage, hours, market value, and remaining loan balance before approving refinancing. Equipment with available equity may provide more flexibility.

• Tax Implications May Vary

  • Depending on your business structure, loan terms, and how funds are used, equipment refinancing may have tax implications. For example, the interest you pay on the refinanced loan may be tax-deductible in some situations. If you purchase additional equipment while refinancing, Section 179 or bonus depreciation may also apply. Consult a qualified tax professional to understand what may be available for your situation.

Refinance Your Existing Equipment Loan With CurrencyFinance

Once you’ve reviewed your current loan terms and identified what you want to improve, CurrencyFinance can help you explore refinancing options thanks to longstanding relationships with lenders across the U.S. and Canada.

Qualified applicants may be eligible for loans up to $500,000 and terms up to 72 months, depending on lender approval, credit profile, equipment value, payoff amount, and other requirements.

1. Share your information and loan detailsProvide information about the asset, current financing, payoff amount, and what you want to accomplish through refinancing.
2. Work with CurrencyFinanceOur dedicated team will review your application and help identify lending partners that may fit your profile and requirements.
3. Compare Your OptionsReview potential terms and financing costs before deciding which option works best for you.
4. If approved, finalize your refinancing agreementComplete the required documentation and move forward with the refinancing option you accept.

Reach out to our financing experts with any questions about the refinancing process.