When the machine, truck, or oven you need is the only thing standing between you and more revenue, how you pay for it matters as much as whether you can.
Equipment financing: the asset is the collateral
The equipment itself secures the loan, which usually means easier approval, longer terms, and lower rates than unsecured options. You own the asset outright at the end. Best when the purchase is a clear, single, revenue-producing item.
A term loan: flexibility, at a cost
A term loan hands you cash you can spend on anything — the equipment plus install, training, or the working capital to run it. More flexible, but usually a higher rate because nothing specific secures it.
The deciding question
If you're buying one defined asset that pays for itself, equipment financing almost always wins on cost. If the project is bigger than the machine — a buildout, a hire, inventory to feed it — a term loan covers the whole move. Match the tool to the whole need, not just the sticker price.