Equipment Sales Financing – Using Section 179 Qualified Financing to Close Deals

Updated: February 2025

Transform Section 179 from a tax benefit into a powerful sales catalyst by leveraging Section 179 Qualified Financing—a strategic approach that enables customers to claim full tax benefits while preserving cash flow. This comprehensive guide shows equipment and vehicle sellers how to boost sales by helping customers acquire essential equipment while maximizing their tax advantages.

When customers use Section 179 Qualified Financing, they can deduct the entire purchase price under Section 179—provided the equipment is in service by year-end. This creates compelling advantages:

Key Benefits

• Claim 100% Tax Deduction: Deduct the entire purchase price in the current year.
• Preserve Working Capital: Manage cash flow with manageable payments.
• Generate Immediate Revenue: Get equipment in use immediately.
• Improve Cash Flow: Benefit from significant tax savings.
• Access Higher-Quality Equipment: Upgrade without depleting cash reserves.
• Maintain Credit Lines: Keep funds available for other business needs.

Compelling Sales Message

Why wait to save on taxes? With Section 179 Qualified Financing, you can write off the full cost on this year’s taxes – while keeping your cash flow stronger than if you had paid cash.

Partner with qualified lenders who specialize in Section 179 financing programs. Crest Capital, our endorsed lender, offers these essential features:

Qualification Requirements

• Minimum 2 Years in Business: Under current ownership.
• Credit Standing:
  • Business: D&B PAYDEX® score of 80 or higher preferred.
  • Closely Held Companies: Personal credit score of 650+.
• Profitability: A profitable business with stable revenue.
• Financing Ranges: Typically between $5,000 and $500,000.
• Term Lengths: Up to 60 months (84 months for strong applicants).

Partnership Benefits

• Point-of-Sale Financing Options
• Same Day Approval Turnaround
• Specialized Section 179 Marketing Materials
• Q4 Pre-Approval Programs
• Documentation Support for Tax Compliance
• Flexible Payment Structures

Create urgency with limited-time offers designed to maximize Section 179 benefits:

Year-End Programs

• “No Payments for 90 Days”: Full tax deduction eligibility.
• Zero Down Payment Options: Payments start next year.
• Q4 Special Interest Rates
• Year-End Completion Bonuses
• Early Commitment Incentives

Implementation Strategy

• Launch Promotions: Start by early October.
• Emphasize Deadline: Highlight the December 31 qualification deadline.
• Tiered Incentive Structures: Create multiple levels of benefits.
• Highlight Tax-Year Benefits: Stress the importance of acting within the tax year.
• Build Urgency: Limited availability drives quicker decisions.

Ensure qualification through precise execution:

Critical Timeline Management

• Coordinate Financing Approvals: Align with delivery schedules.
• Maintain Strategic Inventory: Meet year-end demands.
• Guarantee Installation Completion: Ensure deadlines are met.
• Document In-Service Dates: For tax compliance.
• Provide Backup Options: Mitigate potential delays.

Communication Protocol

• Weekly Status Updates: Keep customers informed.
• Clear Timeline Expectations: Communicate all steps.
• Document Approval Progress: Maintain transparency.
• Confirm Installation Schedules: Secure timely completion.
• Written Verification: Confirm qualification for the deduction.

Special rules apply to vehicle financing under Section 179:

Vehicle Categories

• Vocational/Specialized Vehicles: Fully deductible with qualified financing.
• Heavier Passenger Vehicles: Subject to specific limits.
• Cars & Light Trucks: Restricted deduction limits apply.

Track these key indicators to optimize your financing strategy:

Sales Metrics

• Close Rate: Financed deals vs. cash purchases.
• Average Time from Quote to Close
• Year-End Promotion Success Rates
• Customer Satisfaction: With financing options.
• Repeat Purchase Rates: From financed customers.

Operational Metrics

• Approval-to-Funding Timeline
• Installation Completion Rates
• Documentation Accuracy
• Partner Response Times
• Customer Referral Rates

• Section 179 Qualified Financing: Complete financing guidelines.
• Section 179 Calculator: Customize calculations for your customers.
• Equipment Requirements: Eligible equipment guidelines.
• Vehicle Deductions: Special rules for vehicle purchases.

Disclaimer: Section179.Org provides independent information and is not affiliated with the IRS. Consult qualified tax professionals regarding your specific situation.