Inventory and equipment – vendor financing vs bank loan.

Equipment suppliers often partner with lenders to offer vendor financing. You get fast approval and sometimes a promotional rate because the vendor wants to move equipment. Traditional banks offer lower rates but require more paperwork and time. Online lenders sit in the middle: quick decisions, moderate rates.

If you pledge equipment as collateral, you may secure a better rate. When comparing offers, look at total cost, not just the rate. Vendor financing may bundle service agreements or require you to buy consumables exclusively from them. Bank loans give you more freedom but can take weeks to close.

As always, diversify your funding sources: don’t rely solely on one vendor or one bank.