Immediate ownership with maximum tax benefits. Section 179 deduction up to $1.16M plus 40% bonus depreciation in 2025. Lowest total cost for profitable companies prioritizing GPU infrastructure ownership.
Apply for Equipment FinancingEquipment financing is a secured loan where the GPU hardware serves as collateral. You own the equipment from day one while making monthly loan payments. Once the loan is repaid, you own the infrastructure outright with no further obligations.
The Structure: Equipment financing is true ownership financing—not a lease. You purchase the GPUs immediately, using a lender's capital, and repay the loan over time. The equipment acts as loan collateral, enabling competitive rates even for companies without extensive credit histories.
Tax Treatment: Since you own the equipment from inception, you qualify for maximum tax benefits: full Section 179 deduction (up to $1.16M in 2025) plus bonus depreciation (40% in 2025, declining annually). These combined tax advantages can offset 75-85% of equipment cost in year one for profitable companies. Learn more in our comprehensive tax benefits guide.
Bonus depreciation phases from 40% (2025) to 20% (2026) to 0% (2027+). Companies deploying GPU infrastructure in 2025 capture significantly higher first-year deductions than those waiting until 2026 or beyond. For a $2M cluster, this represents $400K in additional deductions compared to 2027 deployment.
Who Offers Equipment Financing: Traditional banks, credit unions, and specialized equipment lenders like SLYD's financing partners provide GPU equipment financing. Approval depends on creditworthiness, business financials, and equipment value.
Equipment financing provides the most straightforward ownership path for GPU financing, combining immediate equipment title transfer with financing flexibility and maximum tax benefits.
Down Payment: Typically 10-20% of equipment value required upfront. For an $80,000 NVIDIA H100 server, expect $8,000-$16,000 down payment. Stronger credit profiles may qualify for lower down payments.
Interest Rates: Currently ranging 7-12% APR depending on creditworthiness, loan term, and equipment type. Well-qualified borrowers with strong financials receive the most competitive rates. Use our financing calculator to estimate your monthly payment.
Monthly Payment: Principal + interest payments over loan term (typically 36-60 months). For a $64,000 financed amount (after 20% down) on a 36-month term at 8% APR, monthly payment would be approximately $2,005.
Payoff & Ownership: After final payment, you own the equipment free and clear. No buyout fees, no end-of-term options to negotiate—just complete ownership of your H200, B200, or other GPU infrastructure.
Equipment financing provides unmatched tax optimization and lowest total cost for companies with strong credit and substantial taxable income. The combination of immediate ownership and maximum deductions makes this the most economically efficient structure for profitable enterprises.
Combine Section 179 (up to $1.16M) with 40% bonus depreciation on remaining basis. For a $2M GPU cluster, deduct $1.16M via Section 179 plus $336K bonus depreciation ($840K × 40%), totaling $1.496M first-year deductions. At 25% tax rate, that's $374K in tax savings.
Equipment title transfers to you from day one. Unlike capital leases or operating leases, you control the asset completely—resell it, repurpose it, or continue operating after loan payoff without restrictions or buyout fees.
Equipment financing has the lowest total cost over equipment lifetime among all financing structures. No lease profit margins or buyout markups—just loan interest. Combined with tax benefits, true cost is dramatically lower than alternatives.
Owned GPU infrastructure appears as a balance sheet asset, increasing enterprise valuation. Critical for companies approaching acquisition, IPO, or fundraising where tangible asset value matters to investors and acquirers.
Equipment financing typically offers 1-3% lower rates than unsecured business loans because the equipment serves as collateral. Strong credit profiles access rates competitive with traditional bank lending.
Fixed-rate loans provide payment certainty for budgeting. No end-of-term negotiations, no FMV uncertainty, no renewal decisions. Straightforward monthly payments until equipment is fully owned.
Equipment financing excels for profitable companies with strong credit prioritizing tax optimization and long-term ownership. If you have taxable income to offset and capital for down payment, this structure delivers the best economics.
Why Equipment Financing: Section 179 and bonus depreciation only benefit companies with taxable income. If you're generating substantial profits, these deductions translate directly into cash savings through reduced tax liability. The more profitable you are, the more valuable equipment financing becomes.
Why Equipment Financing: Best rates require good-to-excellent credit. Companies with 700+ credit scores, profitable operations, and strong balance sheets access 7-9% rates, making equipment financing's total cost significantly lower than capital lease alternatives.
Why Equipment Financing: When you know you'll operate GPU infrastructure for 4-7+ years, ownership economics are unbeatable. After loan payoff, you operate equipment with zero additional payments—pure margin expansion for inference services or continued model training.
Why Equipment Financing: If you can comfortably cover 10-20% down payment while maintaining healthy cash reserves, equipment financing provides the best total economics. The tax savings typically exceed down payment costs within 12-24 months.
With bonus depreciation at 40% (2025), 20% (2026), then 0% (2027+), there's a closing window for maximum tax benefits. Companies planning GPU infrastructure deployment should accelerate timing to 2025-2026 to capture these benefits. For a $3M cluster, the difference between 2025 and 2027 deployment is $480K in lost bonus depreciation deductions—potentially $120-168K in tax savings at typical corporate rates. Contact SLYD to structure tax-optimized equipment financing.
Equipment financing is a secured loan where you purchase GPU hardware immediately and repay the lender over time (typically 36-60 months). The equipment serves as loan collateral. You own the GPUs from day one, qualify for full Section 179 and bonus depreciation tax benefits, and own outright after final payment with no buyout fees.
Section 179 allows deduction of up to $1.16 million in 2025, plus 40% bonus depreciation on remaining value. For example, a $1.5M GPU cluster generates $1.16M Section 179 deduction plus $136K bonus depreciation ($340K × 40%), totaling $1.296M in first-year deductions. At 25% corporate tax rate, this saves approximately $324,000 in year-one taxes. Consult your tax advisor for your specific situation.
Most lenders require 650+ credit score minimum, with best rates (7-9% APR) available to borrowers with 700+ scores. Companies with 650-699 scores still qualify but at higher rates (9-12% APR). Strong business financials, profitability, and cash reserves can compensate for moderate credit scores during underwriting.
Typical down payments range 10-20% of equipment value. For an $80,000 NVIDIA H100 server, expect $8,000-$16,000 down. Well-qualified borrowers with excellent credit (750+) and strong financials may access 10% down programs. Startups or companies with limited credit history typically require 20% down.
Equipment financing has the lowest total cost over equipment lifetime when you plan to own GPUs long-term. While monthly payments are higher than operating leases, you're building equity and qualify for substantial tax deductions. After loan payoff (typically 3-5 years), you operate equipment with zero payments. For 7-year GPU ownership, equipment financing costs 30-50% less total than operating leases for comparable terms.
Most equipment lenders prefer new GPU purchases but will consider late-model used equipment (typically under 2 years old) from reputable sources. Used equipment financing usually requires higher down payments (20-25%), shorter terms (24-36 months vs 60 months for new), and may carry slightly higher interest rates. Refurbished equipment from OEM-certified programs typically qualifies more readily than third-party refurbished units.
Partner with SLYD to structure tax-optimized equipment financing for your NVIDIA or AMD GPU infrastructure. Immediate ownership, Section 179 benefits, competitive rates. Apply now to lock in 2025 bonus depreciation before phase-down.
Apply for Tax-Advantaged Financing