Equipment Financing vs. Leasing vs. Line of Credit vs. Working Capital vs. Business-Use HELOC: Which One Is Right for You?

There's never been more capital available to small businesses than there is right now. Equipment financing, leasing, lines of credit, working capital, home equity — five strong products, each built to do something specific exceptionally well.

The good news is that you don't have to pick the "best" one. You just have to pick the one that matches what you're doing. Here's how they line up.

Equipment financing

The workhorse. You're buying an asset and you want to own it.

You take the loan, the equipment secures it, and you own it from day one — building equity with every payment. Terms run up to 60 months, and because the asset itself carries the deal, underwriting looks at the equipment as much as at you. That's why equipment financing opens doors that stay closed elsewhere.

Then there's the tax lever, which is genuinely powerful: you can deduct the full purchase price in year one under Section 179 and 100% bonus depreciation — even though you financed it. Put a little down, deduct the whole thing, pay over time. You own the asset, you build equity, and the write-off lands before most of the cost does.

Great when: the asset will outlive the loan, holds its value, and you'll keep it for years.

Equipment leasing

The capability, without the commitment.

Payments are lower because you're paying for use rather than ownership. Tax treatment is beautifully simple — payments generally get expensed as an operating cost, no depreciation schedule to manage. And when the term ends, you have options: buy it out, upgrade to the current generation, or walk.

That flexibility is the whole point. Technology moves. Leasing lets you move with it.

Great when: the equipment evolves quickly (technology, certain medical and diagnostic gear), you want the lowest monthly payment, or you'd rather stay current than own outright.

Business line of credit

Capital that's there before you need it.

Revolving credit you draw on and repay as needed, with interest only on what you actually use. Repay it and it's available again. It's the product that turns an unpredictable month into a non-event.

Simple interest lines up to $100,000 give you a standing reserve — for the seasonal swing, the receivable that's running late, the inventory buy you didn't schedule, the opportunity that showed up on a Tuesday.

Great when: your needs recur, vary, and don't announce themselves in advance.

Working capital loan

Speed and simplicity for a defined push.

A lump sum with shorter terms — typically 6–24 months — and automatic daily or weekly payments pulled from your account. That rhythm is the feature: the same amount at the same time, no checks to cut, no due dates to track, no unwelcome surprises in the mail. Short-term financing without the usual stress.

For healthy businesses with steady revenue, this is the fastest way to turn a known opportunity into a funded one.

Great when: you're bridging to something you can see — a contract that funds next quarter, a seasonal ramp, a hiring push, a bulk purchase at a real discount.

Business-use HELOC

Your home equity, working as business capital.

This is one of the most underused tools available to business owners, and for the right situation it's outstanding.

The rate is the lowest on this list. Home equity is the most affordable capital most business owners have access to — meaningfully cheaper than unsecured business borrowing, with higher limits than a personal loan or credit card.

Approval leans on your personal profile — credit, income, and equity — rather than your business's revenue history. That's a genuine advantage: newer businesses and startups frequently qualify for a business-use HELOC while they're still building the track record other products want to see.

There's real capacity sitting there. American homeowners are holding record equity right now — the average mortgage-holding homeowner has well over $200,000 in tappable equity, available while still keeping a healthy 20% stake in the home.

It's flexible. Draw what you need, when you need it, up to your limit — with interest only on what you actually use during the draw period, which typically runs 10 years. Equipment, inventory, build-out, marketing, payroll, a partner buyout, a competitor's assets at a discount. No approval needed for each expense.

And it moves faster than its reputation. With modern automated valuations replacing in-person appraisals, a business-use HELOC can fund in as few as five business days. Preparation is the biggest lever — strong credit, documents submitted up front, and quick responses keep you at the fast end of that range.

Great when: you have equity in your home, want the lowest available rate, and want flexible capital you can deploy on your own timing.

Rates on a HELOC are variable, and terms depend on your equity position and personal profile — we'll walk you through exactly what yours looks like before you commit to anything.

The one question that sorts this

What are you buying, and how long will it last?

• A durable asset you'll own for years → equipment financing
• A capability that evolves quickly → leasing
• A recurring, unpredictable need → line of credit
• A defined short-term push → working capital
• Flexible capital at the lowest rate, backed by your home equity → business-use HELOC

Match the life of the financing to the life of the thing you're financing, and the right answer usually picks itself.

We do all five

Everlasting Capital is a true solutions provider — which means you don't have to figure this out alone or shop five lenders to find out what you qualify for.

• Equipment financing and leasing — $1,000 to $2,000,000, new and used, terms up to 60 months, deferred payment options, and up to 100% financing that can include shipping, taxes, and installation
• Business lines of credit — simple interest, up to $100,000
• Working capital — 6–24 month terms with automatic daily or weekly payments
• Business-use HELOCs — your home equity deployed as business capital, at the lowest rates we offer

We work with businesses of every size and industry across all 48 continental states, and across every credit profile — bad credit, no credit, great credit, or a business you started last month. We have a burning desire to prove ourselves to every customer regardless of their financial situation.

One application. Approvals often in hours. Funding in as little as 24 hours.

Find your fit at everlastingcapital.com/apply

Everlasting Capital is not a tax advisor and this article is not tax, legal, or investment advice. Interest deductibility on home equity borrowing used for business purposes depends on tracing rules and your specific circumstances — consult a qualified tax professional. Terms, rates, amounts, structures, and funding timelines vary by program, credit profile, equity position, and asset type, and are subject to underwriting approval.