Business loans for machinery and equipment

Do you need to invest in new machinery, vehicles, or technical equipment? With a business loan from Froda, you can finance machinery purchases and equipment upgrades without tying up all your equity.

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Whether you run an industrial, construction, manufacturing, restaurant, or workshop business, the right financing can help you increase capacity and efficiency.

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What is equipment financing?

Equipment financing is an umbrella term for the various ways a company can borrow money or lease equipment to conduct its business. This means you don’t have to pay the entire amount at once.

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When you’re facing a major investment, you need a way to manage your costs. With the right type of agreement, you can spread out your payments over time. This helps you maintain liquidity in your business. An equipment loan allows you to borrow money to purchase equipment, which then becomes your property immediately. It’s an advantageous, cost-effective, and simple way to ensure you always have modern equipment on hand when demand increases.

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How machine financing works at Froda

At Froda, equipment financing is a business loan—not a lease. This means you own the equipment from day one, can record it as an asset in your books, and claim depreciation as usual.

1. You find the machine the company needs. You negotiate the price and specifications with the supplier, regardless of the brand.
2. You submit an application. This is easily done online. The application is often approved immediately, and you’ll receive information about the terms and conditions (cost, terms, and repayment period) that apply.
3. The agreement is signed. Once you accept the offer, the funds are disbursed, and you can complete the purchase. The cost is spread out over the repayment period.

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Should you opt for equipment leasing or an equipment loan?

A machine loan gives you immediate ownership, while machine leasing means you rent the equipment for a fixed period.

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The choice between leasing and installment payments depends on your long-term needs. A loan through Froda is a convenient option if you want to own the equipment and depreciate it in your own accounting records. Leasing often means that the asset is not included on your balance sheet, which does not affect your key financial ratios.

However, leasing may restrict you from selling the machine at short notice. A loan gives you full control over your asset from day one, with absolutely no restrictions on how much the equipment can be used.

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What are the risks associated with equipment financing?

The biggest risks involve tying up capital for too long, suffering an unexpected decline in value, or seeing interest costs spiral out of control if you don't have a good agreement.

• The machine's depreciation over time. If you purchase technology that quickly becomes obsolete, there is a technical risk that the machine will lose value faster than you can pay it off.
• Machinery financing involves ongoing costs. A variable interest rate can cause your monthly payment to increase if market conditions change.
• Tied-up capital. If you make a large cash down payment, you may tie up capital that you actually needed for ongoing expenses.
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What are the benefits of a machinery loan?

The benefits include full ownership, flexible use with no time limits, and the opportunity to sell the machine exactly when you want.

• No restrictions on use. Since you own the machine, there’s no rental company dictating how many hours you can operate it or setting an end date for the agreement. That gives you freedom.
• Easier to plan your finances. With customized solutions and a fixed monthly payment over the life of the loan, you know exactly how much the machine costs each month. This reduces risks.
• Option to upgrade your equipment. You can sell the machine at any time, pay off the loan, and invest in newer, more efficient equipment. This frees up capital that you can use elsewhere.
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How do you apply for a machinery loan?

1. Application. You fill out your application for equipment financing and easily verify your identity using BankID. The application is completely free, and there’s no obligation.
2. Credit Check. Froda conducts a credit assessment based on your company’s financial situation. We use Creditsafe instead of UC, which is an advantage since multiple inquiries with UC can lower your credit score. This process usually takes only a few minutes, but no more than 24 hours.
3. Offer. You'll receive a financing proposal with an interest rate and terms tailored to your needs. If you'd like, you can adjust the amount and term before signing the agreement.
4. Payment. When you accept the offer, you sign the agreement digitally, and the funds are deposited into your business account within 24 hours, so you can quickly invest in the machinery or equipment your business needs.

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Customer case: Ostmakeriet på Rindö

See an example of how a loan for machinery and equipment can be used, when Anna at Ostmakeriet på Rindö ice cream machines with Froda.

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Customer case: Upplands Honung

See an example of how a loan for investment in production and machinery can be used, when Göran at Upplands Honung bottling machines for his honey production with Froda.

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How to Apply to Froda

Applying for a business loan for machinery is easy:

1. Apply digitally in just a few minutes
2. Get a quick response
3. Choose a repayment plan that suits your cash flow

You do not need to pledge machinery or vehicles as collateral. We make a comprehensive assessment of the company's repayment ability.

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Frequently asked questions about loans for machinery

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Can I take out a business loan to buy machinery?

Yes. You can use the loan to finance new or used machinery and equipment.

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Do I need security in the machine?

No, you do not need to leave the machine as collateral with Froda.

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How quickly can I obtain financing for machine purchases?

The application is digital and you will receive a quick response. Payment will be made shortly thereafter.

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Are machine loans suitable for small businesses?

Yes. Small and medium-sized businesses often use business loans to invest in equipment and grow.

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Can I use the loan for both the machine and installation?

Yes. The loan can be used for the entire investment, including installation and related costs.

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Ready to invest in machinery and grow?

With a business loan for machinery, you can increase capacity and strengthen competitiveness without compromising cash flow.

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Apply today and receive a quick response.

Want to see more ways to use a business loan?

Explore all our business loan options and find the right financing for your needs.