Equipment financing that fits your Section 179 plans

Two separate questions on one purchase

When an owner is weighing a new oven line, a lift, a truck for local routes, or a diagnostic system, two questions usually come up at once. How do I pay for it without draining the operating account? And how does the purchase show up on my taxes this year? Equipment financing answers the first. Section 179 belongs to the second, and it is a conversation for you and your tax advisor.

We do not give tax advice. What follows is a summary of what the IRS publishes, so you walk into that conversation prepared.

What IRS Publication 946 says about Section 179

Section 179 lets a business elect to deduct the cost of qualifying property in the year it is placed in service, instead of spreading the cost out through depreciation. According to IRS Publication 946:

• For tax years beginning in 2025, the maximum Section 179 deduction is $2,500,000, reduced dollar for dollar when qualifying property placed in service that year costs more than $4,000,000.
• For tax years beginning in 2026, the published maximum is $2,560,000, with the reduction starting above $4,090,000.
• Property used for both business and personal purposes must be used more than 50% for business in the year it is placed in service.
• The deduction is also limited to taxable income from the active conduct of a trade or business, and disallowed amounts can generally carry forward.

Limits change, and special rules apply to vehicles and married filers. Confirm the current figures and how a financed purchase is treated with your tax advisor before you plan around a number.

Where equipment financing fits

Equipment financing spreads the cost of a machine over time, with the equipment itself typically tied to the agreement. The idea is simple: the asset helps produce the revenue that pays for it. That is why funders look closely at what the equipment is, what it costs, and how steady your deposits are.

Through our partner Merchant Fund Express, established businesses can request equipment financing as part of a funding range from $25,000 to $5,000,000. See the full equipment financing overview for how the product works on its own.

A planning example

For illustration only: a regional landscaping company doing about $140,000 a month wants two commercial mowers and a trailer before spring. The owner finances the equipment so cash stays available for payroll and fuel, then sits down with the CPA in the fall to decide whether electing Section 179 makes sense given that year's income. The financing decision and the tax decision are made separately, by the right people, on the right timeline.

What the application asks for

• About three months of business bank statements
• No tax returns required to apply
• A soft credit pull to start; FICO 500+ is considered
• A 5-minute application, and sole proprietors can apply

For qualified businesses, funding can arrive in as little as 24 hours. If you already know the equipment you need, you can start the application now. Comparing options first? Read equipment financing vs working capital.

Credit is its own track

Our credit repair work and this funding are separate services. You can apply for equipment financing based on what the business earns while working on personal credit on your own timeline. One does not depend on the other.