Question 1

What is considered capital equipment?

Accepted Answer

Capital equipment refers to long-term assets such as machinery, vehicles, or technology that businesses use for more than one year to generate revenue or support operations.

Question 2

What qualifies equipment as a capital expense?

Accepted Answer

Equipment is considered a capital expense if it has a useful life longer than a year, provides ongoing business value, and meets minimum dollar thresholds defined by accounting rules or tax guidelines.

Question 3

Is capital equipment the same as fixed assets?

Accepted Answer

Yes—capital equipment is a type of fixed asset. Both are long-term resources used in business operations, recorded on a company’s balance sheet, and depreciated over time.

Question 4

Can small businesses finance capital equipment?

Accepted Answer

Yes. Many lenders offer equipment financing for new or used machinery, vehicles, technology, and construction equipment. Financing allows businesses to preserve cash flow instead of paying upfront.

Question 5

What industries use the most capital equipment?

Accepted Answer

Industries such as manufacturing, construction, healthcare, logistics, and industrial services depend heavily on capital equipment to deliver products and services.

Question 6

What is the typical lifespan of capital equipment?

Accepted Answer

Most capital equipment lasts several years and may qualify for depreciation. Lifespan depends on usage, maintenance, and technology upgrades.

Question 7

What is the difference between buying and financing capital equipment?

Accepted Answer

Buying requires full payment upfront, while financing spreads cost over time and preserves working capital.

Question 8

Can I finance used equipment?

Accepted Answer

Yes, lenders commonly finance new or used equipment as long as it meets their condition, valuation, and business-use requirements.

Your FundingTree Blog

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6000 Fairview Road, Suite 1200,
Charlotte, NC 28210.

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Your FundingTree Blog

Categories

What Is Capital Equipment?

Save time and money by filling out our easy 90-second application today!

Bankruptcy Foundations: Chapter 11 vs Chapter 13

10 Things the Most Profitable Small Businesses Know

Business Line of Credit Requirements and How to Apply

Definitive Guide to Commercial Truck Financing

SBA Loan Programs and the Different Types of SBA Loans

Should You Trust Online Small Business Lenders?

Save time and money by filling out our easy 90-second application today!

Need Help?

704-904-0774

[email protected]

6000 Fairview Road, Suite 1200, Charlotte, NC 28210.

Resources

Explore

6000 Fairview Road, Suite 1200,
Charlotte, NC 28210.