How equipment financing works
A lender pays for the equipment and you repay in installments with interest. Some providers offer installment plans for their own hardware. Approval is based on the lender’s review of your business.
EQUIPMENT FINANCING
Spread the cost. Own the hardware.
Equipment financing lets you pay for POS hardware in installments while building ownership. The interest rate, fees, and term decide whether it is a good deal.
PAYMENTS IN MOTIONSpread the cost. Own the hardware.
THE SHORT ANSWER
POS equipment financing is a loan or installment agreement used to buy hardware, so the business owns the equipment, often from the start or once the final payment is made. It usually costs less in total than a long lease but more than paying cash. Compare the annual percentage rate, fees, term, and total repayment amount.
Updated · Waytrix Pay editorial team
KEY TAKEAWAYS
- Financing leads to ownership; leasing and rental often do not.
- Compare the annual percentage rate and total repayment, not just the monthly payment.
- Shorter terms usually cost less overall.
- Financing is provided by third-party lenders who set eligibility and terms.
CALCULATOR
Estimate your equipment loan payment.
Enter the price, down payment, rate, fees, and term to see your payment, total interest, and payoff schedule.
When financing makes sense
Financing suits businesses that want to own durable equipment, plan to use it for years, and prefer not to tie up cash.
- Long-lived counter stations and kitchen displays
- Businesses expecting to keep the same POS for several years
- Owners who want equipment on their balance sheet
What to compare
Request every offer in writing and compare them on the same basis.
- Annual percentage rate and any origination fees
- Total amount repaid over the term
- Prepayment penalties
- Whether the loan is tied to a processing agreement
- What happens if you change processors
How Waytrix Pay helps
We set financing next to purchase, leasing, and rental for the same hardware and explain each total. Financing is arranged through third-party providers; Waytrix Pay does not lend money.
FREQUENTLY ASKED
Questions businesses ask.
What is the difference between leasing and financing?
With financing you are buying the equipment and typically own it outright once repaid. With a lease you pay to use equipment owned by the leasing company, with ownership depending on the end-of-term option.
Does equipment financing require a credit check?
Most lenders review business and sometimes personal credit. Ask the lender what they check before you apply.
Can I pay off equipment financing early?
Often, but some agreements include prepayment penalties. Confirm before signing.