Equipment Financing vs Commercial Real Estate
Equipment financing funds machinery and equipment purchases, while commercial real estate financing funds building purchases and construction. These are two separate asset financing solutions for different types of business investments.
Get Your SmartMatch AssessmentEquipment Financing vs Commercial Real Estate: Equipment Financing is better for businesses needing purchasing manufacturing or production equipment. Commercial Real Estate is better for owner-occupied commercial property acquisition. Equipment Financing offers 3-5 days approval, 5-10 days to funding funding from $10K to $500K, while Commercial Real Estate offers 20-30 days funding from $100K to $5.0M. Nautix Capital's SmartMatch assessment compares both options against your business profile in under 2 minutes.
Key Differences
| Category | Equipment Financing | Commercial Real Estate |
|---|---|---|
| What It Finances | Machinery and equipment | Buildings and property |
| Interest Rate | 5-30% APR | 5-12% APR |
| Typical Loan Term | 3-7 years | 10-25 years |
| Collateral Type | Equipment itself | Real property |
| Depreciation Speed | Fast (3-5 years) | Slow (27.5-39 years) |
Equipment Financing is Best For
- Manufacturing facilities upgrading production machinery
- Dental practices purchasing diagnostic equipment
- Contractors buying heavy equipment like excavators
Commercial Real Estate is Best For
- Companies purchasing the building they currently lease
- Franchises building out new locations
- Developers acquiring land or constructing facilities
Product Details
Equipment Financing
- Funding Range
- $10K to $500K
- Approval Speed
- 3-5 days approval, 5-10 days to funding
- APR Range
- 4% - 10%
- Term Length
- 3-10 years (matched to equipment life)
Commercial Real Estate
- Funding Range
- $100K to $5.0M
- Approval Speed
- 20-30 days
- APR Range
- 4.5% - 8.5%
- Term Length
- 10-20 years
The Verdict
These finance different assets. Choose equipment financing for machinery and equipment. Choose CRE financing for buildings and land—match the financing to the specific asset you're purchasing.
Learn More About Each Option
Equipment Financing Guide
Finance new or used equipment with predictable payments that fit your cash flow.
Commercial Real Estate Guide
Acquisition, refinance, or development for owner-occupied commercial or investment properties.
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Find Your Best MatchFrequently Asked Questions
What's the main difference between Equipment Financing and Commercial Real Estate?
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