What Is Falcon Equipment Finance?

Falcon Equipment Finance is a financing company that provides lease and loan solutions specifically for purchasing business equipment. It works with a network of lenders to fund items such as vehicles, construction machinery, and office technology, typically offering either a capital lease or a term loan depending on the borrower's preference.

The service mainly targets small‑ to mid‑size businesses, contractors, and startups that need equipment but may not qualify for traditional bank loans. Rates, fees, and repayment terms vary by lender, credit profile, and equipment type, so reviewing the detailed agreement and confirming all costs before signing is essential.

Falcon usually provides the cash you need by extending a loan or lease directly to you, then disbursing the funds to the equipment seller once your application clears. The exact flow can vary by deal, but the typical sequence is:

• Application review - Falcon checks credit, revenue, and the equipment cost; approval often takes a few business days.
• Funding source - Money comes from Falcon's own capital pool or a partnered lender; you do not need a separate bank loan.
• Disbursement timing - After approval, Falcon typically wires the full purchase price in USD to the vendor within 1 - 5 business days, though some deals allow a hold‑back until delivery is confirmed.
• Ownership structure - With a loan, you own the equipment immediately and repay over time. With a lease, Falcon retains legal title until you exercise a purchase option at lease end.
• Transfer of title - The seller transfers the title to the party named in the financing agreement (you or Falcon), so verify who will be listed on the bill of sale before signing.

Check your contract for any hold‑back amounts, ownership conditions, and the exact disbursement schedule before you sign.

Falcon provides three main ways to finance equipment purchases.

• Term loan - A fixed‑rate loan paid back in equal monthly installments over a set term; the full amount is disbursed up front and you own the equipment immediately.
• Equipment lease - A contract to use the equipment for a defined period; payments are typically lower than a loan and you may acquire ownership at lease end if a purchase option is included.
• Revolving line of credit - An approved credit limit you can draw on for multiple purchases; interest accrues only on the amount used and you can re‑borrow as you repay.
• Lease‑to‑own (capital lease) - A lease that treats the equipment as an asset on your balance sheet; most payments build equity and title usually transfers to you at the end of the term.

Always review the specific agreement for fees, interest rates, and eligibility before proceeding.

When you finance equipment through Falcon, expect an interest rate that reflects your credit profile, a set of standard fees, and repayment terms designed to match the equipment's life cycle.

• Interest rate (APR) - Calculated annually, often variable, and linked to your credit score, the type of equipment, and whether you choose a loan or lease. Rates are generally higher than those offered by traditional banks, especially for newer or risk‑ier borrowers.
• Typical fees - Origination or setup fee, documentation processing fee, late‑payment charge, and, in some cases, a pre‑payment penalty. Each fee is disclosed in the financing agreement; amounts can vary by equipment category and credit history.
• Payment terms - Monthly installments over a period that usually aligns with the equipment's useful life, ranging from a few months to several years. Payments may be fixed or amortized, and early payoff is often permitted, though a fee may apply.

Double‑check the APR, fee schedule, and term length in the contract before signing, and compare them with any alternative financing options you're considering. Ensure the repayment schedule fits your cash‑flow projections to avoid unexpected strain.

You'll likely qualify if you meet the common criteria that Falcon lenders look for, but each application is reviewed individually. Typical factors include credit strength, business revenue, available collateral, and the industry you operate in.

Most Falcon programs prefer a personal or business credit score in the mid‑600s or higher, though some products accept scores in the low‑600 range with stronger cash flow. Annual revenue thresholds often start around $100,000, with higher‑value equipment requiring $250,000 + in sales. Lenders may ask for collateral such as the equipment itself, a lien‑free asset, or a personal guarantee, and certain high‑risk industries (e.g., cannabis, adult entertainment) may be excluded or face tighter terms.

The safest next step is to gather recent tax returns, bank statements, and a list of the equipment you want to finance, then contact Falcon's sales or credit team to confirm the exact requirements for your situation. Double‑check any listed conditions in the agreement before you sign.

To apply for Falcon Equipment Finance, gather your paperwork, fill out the online application, upload the required documents, and wait for the underwriting decision.

1. Confirm basic eligibility - Review Falcon's publicly posted criteria (e.g., minimum business age, credit score range, and allowable industries). If you're unsure, a quick call to their sales team can save time.
2. Create an account - Register on Falcon's portal or request a starter link from a sales representative. You'll need your legal business name, Employer Identification Number (EIN), and a contact email.
3. Select the equipment and financing type - Enter the vendor's quote, total cost, and any down payment you plan to make. Choose between options such as a term loan, lease, or hybrid structure, noting that the available terms may vary by equipment category.
4. Prepare required documents - Typical items include:
   • Recent business tax returns (usually the last two years)
   • Latest bank statements (30‑day window)
   • Financial statements or profit‑and‑loss report
   • Personal guarantee information (government‑issued ID and personal credit report)
   • Detailed equipment quote or purchase order

   Keep these files in PDF format for faster uploading.

5. Complete the application - Fill in company financials, ownership details, and the equipment information. Double‑check that numbers on the form match the supporting documents; mismatches can delay review.
6. Upload and submit - Use the portal's upload feature to attach each document. After a final review, electronically sign the application and hit 'Submit.'
7. Respond to any follow‑up requests - Falcon's underwriting team may ask for clarifications or additional paperwork. Providing requested items promptly helps keep the process moving.
8. Review the decision and terms - Once approved, Falcon will share a financing agreement outlining rates, fees, and repayment schedule. Verify every term before signing; ask for clarification on any clause that seems unclear.

Safety note: Keep copies of every document you submit and confirm the final contract numbers before committing.

To get more favorable terms from Falcon, focus on the levers they typically consider: a larger down payment, a shorter or longer term length, adding a reliable co‑signer, and presenting solid competing offers from other lenders. Each of these items can influence the interest rate you're offered and the overall payment schedule.

Before you call, gather your current credit snapshot, a written quote from at least one rival source, and a clear idea of how much you can put down. When you speak with the Falcon representative, request specific adjustments - e.g., 'Can we reduce the rate if I increase the down payment to X%?' - and ask that any agreed changes be reflected in a contract amendment. Verify the final numbers in writing before signing.

Choose Falcon when you need fast, flexible financing that can accommodate limited collateral or unconventional equipment purchases. Choose a traditional bank when you prioritize the lowest possible interest rate and can meet stricter documentation requirements.

Falcon's advantage lies in speed and flexibility. Applications often finish within a few business days, and the lender may accept personal guarantees or a modest down‑payment instead of full asset pledges. This can be useful for seasonal businesses, rapid expansion, or projects where the equipment's resale value is uncertain. Pricing may be higher than bank rates, so compare the quoted APR and any origination fees before signing.

Banks typically offer lower rates because they rely on established credit underwriting and larger balance‑sheet resources. They usually require comprehensive financial statements, audited tax returns, and sometimes a higher equity stake in the equipment. If you have strong credit, a solid cash flow record, and can wait weeks for approval, a bank loan often yields cheaper long‑term costs.

Before deciding, request a side‑by‑side quote, verify collateral expectations, and read the repayment schedule for hidden fees. Always confirm that the financing terms match your cash‑flow projections.

Avoid these hidden risks and contract pitfalls before you sign a Falcon equipment financing agreement.

Look for the following red flags, and verify each term in writing:

• pre‑payment penalties that charge a percentage of the remaining balance;
• balloon payments that require a large lump‑sum at the end of the term;
• variable‑interest clauses that let the rate rise without notice;
• mandatory equipment insurance that is higher than market rates;
• personal‑guarantee language tying the loan to owners' personal assets;
• default triggers such as a missed payment of one cycle or a change in credit score;
• re‑possession rights that allow Falcon to take the equipment with minimal notice;
• automatic renewal or extension clauses that roll the agreement forward unless you opt out in advance;
• vague definitions of 'late,' 'default,' or 'penalty,' which can be interpreted against you.

Read the entire contract, not just the summary page. Compare the listed rates and fees with what was quoted during the application. If any clause seems ambiguous, ask Falcon for clarification in writing and keep the response. For complex issues - especially personal guarantees or variable‑rate provisions - consult a financial advisor or attorney before signing.

Taking these steps helps you avoid surprise costs and protects your business if circumstances change.

Businesses typically turn to Falcon when they need new machinery but want to keep cash on hand. They submit a financing request, receive a decision within days, and use the approved line to purchase the equipment directly from the vendor or via a third‑party lender.

Illustrative example 1: A regional construction firm required two back‑hoe loaders costing $250,000 each. After a quick online application, Falcon approved a 24‑month loan covering 80 % of the purchase price. The firm used the funds to pay the dealer, kept the remaining cash for payroll, and repaid the loan in equal monthly installments.

Illustrative example 2: A medical‑office chain needed a new MRI machine priced at $1.2 million. The chain opted for Falcon's equipment lease‑to‑own option, which allowed a 36‑month lease with a purchase‑option at the end. The lease payment was lower than a traditional bank loan, enabling the practice to allocate budget to staffing instead.

Illustrative example 3: A startup bakery wanted a commercial oven and refrigeration units totaling $85,000. Because the business had limited credit history, it chose Falcon's flexible credit line, which required only a modest personal guarantee. The line was drawn down as each piece arrived, avoiding a lump‑sum loan and reducing upfront costs.

In each case, the businesses verified the financing terms in the agreement, confirmed that the equipment qualified under Falcon's policy, and ensured the repayment schedule matched their cash‑flow projections. Always review the contract for early‑payment penalties or equipment‑use restrictions before signing.

• Startups and borrowers with low credit can still apply to Falcon, but approval generally depends more on demonstrated cash flow, a sizable down payment, and the equipment's residual value than on credit score alone.
• Provide recent bank statements and tax returns that show steady revenue; Falcon often uses these to gauge repayment ability when traditional credit metrics are weak.
• Offer a larger upfront payment (e.g., 20‑30 % of the equipment cost) or a personal guarantee; this can offset a weak credit profile and improve the likelihood of financing.
• If Falcon's terms are unfavorable, consider complementary options such as equipment leasing, vendor financing, or an SBA micro‑loan, which may have more flexible credit requirements.
• Compile a concise business plan highlighting how the equipment will generate income; include projected cash flow and a timeline for repayment to strengthen your application.