Guide

You want a second lift and an alignment machine for your shop. Equipment financing or a working capital loan?

Equipment financing for both — a lift and an alignment rack are exactly the assets it exists for, financed over three to five years with the vendor paid directly, and available to a shop at six months in business with a personal score around 600. Use working capital only for the concrete work, the electrical, and the bay you lose for a week during install. Alignment machines pay back fast; that is the case to make in the application.

Why this one is an easy equipment deal

A two-post or four-post lift and an alignment rack with its sensor system are commercial assets with model numbers, resale markets and installers who will move them. Equipment lenders like them for the same reason they like forklifts: if it goes wrong, the security is real. Approval turns on the equipment quote, your last six months of deposits and a personal score somewhere around 600, with a 10 to 20 percent down payment for a newer shop or a thinner file.

Terms of three to five years, the vendor paid directly on install, and pricing closer to a bank's than to anything short-term. Two to five business days from a signed quote.

Why not fund it on working capital

Because it costs several times more. A $25,000 alignment machine on a nine-month advance is priced as though it were payroll — unsecured, short, expensive. The same machine on a four-year equipment loan is priced as a machine. The advance's speed advantage is two days, and a lift install takes a week anyway.

Working capital has a job here, and it is a small one: the concrete pad, the electrical run, the bay that is out of service during install, and the tech you are still paying while the alignment rack is calibrated. Fund that separately, on the shop's deposits, in one to three business days, and keep the machines on the machine money.

Cost of $50,000, by product

BANK TERM LOAN60 months · hardest to qualify for$13,700SBA 7(A)120 months · lowest monthly, slowest$34,200ONLINE TERM LOAN18 months · days, not months$11,500LINE OF CREDIT12 months · pay only on what you draw$7,400MERCHANT CASH ADVANCE9 months · fastest, no score floor$15,000$0$36,000
Total cost of capital on a $50,000 facility, with the term stated on every bar — a comparison that hides the term is not a comparison. An advance is the most expensive money here and the only one that reaches a business the bank has already declined. Illustrative figures at mid-range pricing, not an offer.

The case to make: alignments pay for the rack

An alignment machine is unusual among shop equipment in that it creates a service you were sending elsewhere. Shops that added one describe the payback in months rather than years, because every tire job and every suspension repair that used to leave the building now stays. Put that in the application in plain numbers: alignments per week you currently refer out, the price of one, the machine's payment. An underwriter who sees the rack paying its own note in month three is reading a very easy file.

A second lift is the same argument in a different shape: it is a second bay's worth of billable hours. Say how many hours the shop turns away now.

New, used, and who installs it

Used lifts from a dealer with a new-cable-and-inspection certificate finance well and cost a fraction of new. Used alignment machines are trickier: the sensor systems age and the software support ends, and a lender will ask about both. A refurbished unit from the manufacturer's dealer is the safe middle.

Confirm who installs and certifies. Lenders generally want the vendor's installer, and your insurer and inspector will want the certification on file. It is also the answer to the question of what happens if the concrete is not up to it — the installer will tell you before the lender finds out.

Sources

Related questions.

Can I finance shop equipment with under a year in business?
Usually, because the equipment secures the loan. Expect a larger down payment and a shorter term, and bring six months of statements and an ASE or industry background if you have one — experience counts for a lot in a new-shop file.
Is a lease better for an alignment machine?
The software and sensors on alignment systems age, and a true lease that returns the unit in four years can make sense if you want the newest system on a cycle. Lifts last decades; buy those on a loan or a dollar-buyout lease.
Does Section 179 apply?
Generally, yes: new or used equipment placed in service in the year can be expensed up to the annual limit, financed or not. The IRS publication on depreciation sets the rules; ask your accountant how it lands for your shop.

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