Ferncroft Business Loans, a small-business funding service in Sheboygan, Wisconsin, helps owners request equipment loans and leases from lending partners. This page explains how equipment financing works, loans versus leases, financing used equipment, and the gear that restaurants, contractors, machine shops and auto repair shops in Sheboygan County finance, plus what partners commonly review.
| Pays for | Machines, vehicles, tools, kitchen lines |
|---|---|
| Usually secured by | The equipment |
| Fabricated metal employers, county | 40 establishments (CBP 2023) |
| Reviewed by | The lending or leasing partner |
How Equipment Financing Works for a Sheboygan County, WI Business
You choose the equipment and get a quote or invoice from the seller. A partner reviews the business and the equipment and, if it approves, pays the seller. You make installments over a term that usually reflects how long the equipment stays useful. The equipment secures the financing, which is why partners care about its age, condition and resale value.
An equipment loan for small business is secured by the machine, so the partner can recover it if payments stop; that is part of what it weighs. That also means the machine is at risk if they do.
Equipment Financing vs Leasing
| Question | Equipment loan | Equipment lease |
|---|---|---|
| Who owns it? | You do; the lender holds a lien until payoff | The leasing company, until the lease ends |
| End of term | Yours free and clear | Hand it back, renew or buy, as the lease says |
| Upfront cash | Often a down payment | Often first payment or a deposit |
| Suits | Long-lived machines | Gear you expect to replace |
How does equipment lease financing work at the end? It depends on the lease type. Some leases end with a nominal purchase price, others with a fair-market-value option. Read the end-of-term clause before comparing payments; a low payment with a large buyout still has a total cost to add up.
Used Equipment Financing
Used equipment can be financed, and for some shops it is worth comparing with new. Partners will ask for the seller's details, the year, hours or cycles, serial number and condition, and sometimes an independent valuation for older or specialized machines. Private-party and auction purchases can be financed, but take more paperwork than a dealer sale.
The sensible way to finance used equipment is to match the term to the machine's remaining life, not to the smallest payment on offer. Our post on financing used CNC machines in Sheboygan County walks through it for machine shops, and the CNC machine loan calculator shows the monthly payment and total cost for any price, down payment, rate and term you enter.
Restaurant and Kitchen Equipment
Ranges, hoods, walk-in coolers, dish machines and point-of-sale hardware are standard equipment-financing purchases. Sheboygan County had 96 full-service and 79 limited-service restaurant employers in 2023 (CBP), and a kitchen line is a major purchase. Hoods and walk-ins attached to the building can be harder to finance than freestanding equipment because they are hard to remove. See restaurant business loans.
Contractor and Trade Equipment
Skid steers, trailers, compact excavators, service vans and specialty tools fill the requests from the trades. The county counted 264 construction employers in 2023, 60.2% of them with fewer than five employees (CBP). Titled vehicles are financed against the title; untitled gear against the invoice and serial numbers. The trade detail is on funding for contractors and builders. Lawn crews have their own pattern, covered in lawn care equipment financing.
Shop Equipment: Lifts, Scanners and CNC Machines
Auto repair shops finance lifts, alignment machines and diagnostic scanners; the county had 62 auto repair and maintenance employers in 2023 (CBP); shop-specific notes are on auto repair shop loans. Fabricators and machine shops finance CNC mills and lathes, press brakes and welders; the county's 40 fabricated metal product employers had 1,817 employees in 2023 (CBP). See machine shop and fabrication funding.
What Partners Commonly Review
- A seller's quote listing make, model, model year and serial number
- Bank statements, plus the date the business opened
- For used equipment: condition, hours or cycles, and sometimes an appraisal
- Any liens already filed against business assets
- The owner's credit
A clear quote speeds everything up. County data is on the Sheboygan, WI page; other options are on the funding options page.
By Ferncroft Business Loans · Updated