Equipment financing is a type of funding that allows businesses to acquire necessary machinery or tools without paying the full cost upfront. Instead, companies can spread the payments over time, making it easier to manage cash flow. This financing can cover various types of equipment, from construction machinery to office technology. Typically, businesses can choose between leasing or purchasing the equipment through financing. Leasing allows companies to use the equipment for a set period while making regular payments, whereas purchasing means owning the equipment outright after the financing term. This flexibility helps businesses invest in growth while maintaining financial stability.