Finance the equipment now, plan Section 179 with your CPA

Two decisions that often get blurred

Owners hear "Section 179" from a dealer in the fourth quarter and assume it is a financing program. It is not. Section 179 is part of the federal tax code that can let a business expense the cost of qualifying property in the year it is placed in service, instead of depreciating it over several years. Equipment financing is a separate question: how you fund the purchase without draining the operating account.

We help with the second question through our funding partner, Merchant Fund Express. We do not give tax advice, and nothing on this page replaces a conversation with your CPA or tax advisor.

What IRS Publication 946 currently states

According to IRS Publication 946, for tax years beginning in 2025:

• The maximum Section 179 expense deduction is $2,500,000.
• That limit is reduced by the amount by which the cost of Section 179 property placed in service during the year exceeds $4,000,000.
• Eligible property includes tangible personal property, off-the-shelf computer software, qualified section 179 real property, and qualified improvement property.
• Land and improvements, and leased property, are listed among property that does not qualify.
• A business income limit applies, and a deduction disallowed by that limit can carry over.

These figures change with legislation and inflation adjustments. Confirm the limits for your specific tax year, and how a financed purchase is treated in your situation, with your tax advisor before you sign anything.

How equipment financing works

With equipment financing, the equipment itself is central to the agreement. You receive funds to acquire the asset, put it to work, and repay on a set schedule while it produces revenue. Because the asset anchors the deal, it can be a practical fit for owners whose credit file is still being rebuilt. Through Merchant Fund Express, funding ranges from $25,000 to $5,000,000, and FICO scores from 500 are considered.

For a broader look at the product, see our equipment financing overview.

A year-end timeline, for illustration

The placed-in-service date is what most owners overlook. Here is a sample plan for a $180,000 CNC machine, for illustration only:

Starting in October leaves room for shipping delays. Starting on December 20 does not.

What we look at for an equipment file

The process stays light: a 5-minute application, a soft credit pull to start, and about three months of business bank statements. No tax returns are required to apply. We work with established businesses, typically doing $60K or more a month, and sole proprietors can apply. Bring the equipment quote or invoice so the amount lines up with the asset.

Many owners we work with are also building business credit as they grow. A financed asset paid on schedule can become part of that story, though funding and credit work are separate tracks.

Get the financing side moving

If a purchase is on your calendar, start the financing early so the tax conversation is about timing, not scrambling. Start your application, or compare options first on equipment financing vs working capital.