Apple Business Financing: How It Works & Alternatives
This article is part of a larger series on Business Financing.
If you use Apple products for your business frequently, you could stand to benefit from Apple’s business financing program, which allows you to lease certain Apple products for up to 36 months. Depending on the leasing program you choose (the $1 buyout or the fair market value leasing option), you can opt to pay to own the product at the end of the lease or exchange it for other equipment on a new lease.
To help you decide whether Apple business financing is right for you, we’ll go through who it’s best for and how it works and compare it with some alternatives.
Best For | Financing Amount | Credit Score | Estimated Annual Percentage Rate (APR) | Minimum Time in Business | Lease Term | |
|---|---|---|---|---|---|---|
 | Overall for Apple products | $4,000 and up | 640 | 6% to 8% and up | None | Up to 36 months |
 | High-revenue businesses seeking excellent customer service | Up to $150,000 | 600 | 10% and up | 2 years | Up to 60 months |
 | Leasing Apple or non-Apple computer products | $2,500 and up | 680 | Varies | 2 years | Up to 60 months |
 | Fast funding speed | $3,000 to $500,000 | 620 | 7% and up | 1 year | Up to 60 months |
 | Bad credit equipment financing | $3,000 to $500,000 | 500 | 8% and up | None | Up to 60 months |
If you know what the loan approval process consists of, you can not only get approved more quickly, but you can also improve your chances of getting funding. For more information and tips on how to strengthen your application, head over to our guide on how to get a small business loan.
Who Apple Financing Is Right For
Over the long run, leasing equipment can be more expensive than purchasing it outright. Apple partners with CIT to offer financing options for its leasing program, and neither publicly disclose rates for Apple business financing. With that being said, CIT offers a separate equipment financing product with rates as low as 5.49%, which could be similar to what it offers for Apple financing as well.
Regardless of the rates charged, here are some scenarios in which Apple business financing could be well-suited for you.
- You want to minimize upfront costs: With interest rates for many equipment loans ranging between 4% to 8%, financing equipment is usually more expensive than purchasing it outright. However, the benefit of financing equipment with either a loan or a lease is the fact that it requires less funds upfront. This allows you to preserve capital that can be used for other areas of your business.
- You want to regularly upgrade to newer equipment: Lease options with Apple business financing can allow you to upgrade your equipment at the end of the lease term. This can be beneficial for business owners who want or need to have the latest in technology. With Apple business financing, you can choose lease terms of 12, 24, or 36 months.
- You want the reliability of newer equipment: By using the lease options provided by the Apple business financing program and regularly upgrading your equipment, you can be less likely to have your business operations interrupted as the result of a failure in business equipment. Upgrading to newer equipment also gives you the opportunity to get a new warranty through Apple, the cost of which can also be financed as part of the lease.
Apple Business Financing Pros & Cons
| PROS | CONS |
|---|---|
| Fewer upfront costs to acquire equipment | Final purchase price of equipment for FMV lease option is not known until lease expiration |
| Allows your company to preserve capital to be used for other business purposes | Cost of leasing can be more expensive than purchasing outright, especially with bad credit |
| Easier upgrade path for equipment once lease expires | Qualification requirements not disclosed until after you apply |
| No application or documentation fees | Requires monthly payments in exchange for fewer upfront costs |
Apple Financing Lease Terms & How It Works
With Apple’s small business financing, there are two types of leases you can choose from: the fair market value leasing program or the $1 buyout option. Here are the Apple business leasing options and how they compare with one another.
Fair Market Value Lease | $1 Buyout Lease | |
|---|---|---|
Financing Amount | $4,000 minimum | $4,000 minimum |
Repayment Term | 12, 24, or 36 months | 12, 24, or 36 months |
Eligible Products | Mac, iPhone, iPad, Apple Watch, and Apple TV | Mac, iPhone, iPad, Apple Watch, and Apple TV |
Financing Amount for Accessories | Up to 25% | Up to 25% |
Monthly Payment | Typically lower payment amounts | Typically higher payment amounts |
Options at End of Lease | Return, extend, exchange for newer equipment, or purchase at fair market value | Pay $1 to own |
Fair Market Valuation Method | Unknown until end of lease | Issued at beginning of lease |
Fair Market Value Lease
Apple’s fair market value (FMV) lease is a good option if you’re looking for lower monthly payments. At the end of the lease, you’ll have options to return the Apple equipment, extend the lease term, or get a new lease on other equipment. You also have the option of purchasing the Apple equipment at fair market value.
One of the downsides with this lease option is that if you decide to purchase the equipment, you will not know the fair market value purchase price until the end of the lease term.
$1 Buyout Lease
With a $1 buyout lease, you’ll be able to own the Apple equipment once the lease expires. As a result, this option typically has higher monthly payments. However, the benefit of this type of lease is that you’ll know the full purchase price of the equipment upfront as opposed to the fair market lease option, where the final purchase price can vary based on market conditions.
Apple Business Financing Costs & Qualification Requirements
Rates & Fees | |
Estimated APR | Not disclosed, but estimated between 6% and 8% |
Application Fee | None |
Documentation Fee | None |
Qualification Requirements | |
Credit Score | Not disclosed, but 640 is recommended |
Time in Business | None |
Business Revenue | None |
Debt Service Coverage Ratio (DSCR) | None |
Personal Guarantee | Required with less than 3 years’ time in business |
Apple has partnered with CIT to offer its business financing product, and it can be easy to qualify for financing based on the requirements it has publicly disclosed. Businesses can qualify for financing with no minimum DSCR, time in business, or revenue requirements. No minimum credit score requirement is disclosed, although you should have at least a score of 640 or higher to improve your chances of getting approved.
With that being said, meeting the minimum requirements does not guarantee approval. CIT can perform a holistic review of your application, and having strengths in your application can make it easier to get approved. For instance, businesses with low credit scores may need a high DSCR. Similarly, having a low credit score could be offset by demonstrating strong business revenue.
How To Get Apple Financing
To apply for Apple business financing, you can visit your nearest Apple retail store or call a member of the Apple business team using the toll-free number on its website.
The Apple website provides a link to apply online through its financing partner, CIT. However, clicking the link currently directs applicants to call instead or visit an Apple store.
Visit Apple Business Financing
Apple Business Financing Alternatives
When it comes to getting financing, it’s always a good idea to consider alternatives and shop rates with multiple lenders. This can also be helpful if you’re having difficulty getting approved or want to see if you can find more favorable rates and terms.
Here are some Apple business financing alternatives you can consider:
- National Funding: Best for high-revenue businesses seeking excellent customer service
- CDW: Best for leasing Apple or non-Apple computer products
- Balboa Capital: Best for fast funding speed
- eLease: Best for bad credit equipment financing
National Funding: Best for High-revenue Businesses Seeking Excellent Customer Service
| |
Rates & Fees | |
Financing Amount | Up to $150,000 |
Estimated APR | 10% and up |
Financing Options | Equipment loans and leases |
Financing Term | Up to 60 months |
Eligible Products | No restrictions |
Qualification Requirements | |
Credit Score | Not disclosed, but 640 is recommended |
Time in Business | None |
Business Revenue | None |
DSCR | None |
Personal Guarantee | Required with less than 3 years’ time in business |
A standout feature of National Funding is its dedication to providing a high level of service. This provider keeps the majority of its loan in-house rather than brokering it out to other lenders, so you’ll have the opportunity to work more closely with the team. Borrowers who apply with National Funding also get paired with a funding specialist who will walk them through the loan process from start to finish.
Other advantages of working with National Funding vs Apple business financing include a lower credit score requirement (600 vs 640, respectively) and longer repayment terms (up to 60 months vs up to 30, respectively).
One downside with this provider, however, is that its other qualification requirements can be more difficult to satisfy. National Funding requires 2 years’ time in business for its equipment financing and also typically looks for $250,000 in annual revenue. To learn more or to apply, you can visit the National Funding website.
CDW: Best for Leasing Apple or Non-Apple Computer Products
| |
Rates & Fees | |
Financing Amount | $2,500 and up |
Estimated APR | Varies |
Financing Options | Equipment leasing |
Financing Term | Up to 60 months |
Eligible Products | Computer products from qualifying information technology (IT) leasing partners |
Qualification Requirements | |
Credit Score | Not disclosed, but 680 is recommended |
Time in Business | 2 years recommended |
Business Revenue | None |
DSCR | None |
Personal Guarantee | May be required |
CDW provides equipment leasing options and has a lower minimum financing amount compared to Apple as you can get as little as $2,500 in funding. It also allows qualified businesses to get up to 100% financing, which can be helpful if you’re looking to minimize your upfront costs of acquiring business equipment.
Unlike Apple business financing, you can work with CDW to get a lease with several different companies. Currently, the provider has partnerships with the following nine businesses:
- Arrow Capital Solutions
- Cisco
- Dell
- Hewlett Packard (HP)
- Lenovo
- Leaf
- Apple
- IBM
- Microsoft
Available lease options are the same as Apple business financing, as you can choose between a fair market value lease or a $1 buyout lease. To get set up for leasing with CDW, you must first obtain a customer number. This is something that can be done over the phone or by emailing the provider’s sales department.
Balboa Capital: Best for Fast Funding Speed
| |
Rates & Fees | |
Financing Amount | $3,000 to $500,000 |
Estimated APR | 7% and up |
Financing Options | Equipment loans and leases |
Financing Term | Up to 60 months |
Eligible Products | No stated restrictions |
Qualification Requirements | |
Credit Score | 620 |
Time in Business | 1 year |
Business Revenue | $100,000 annually |
DSCR | None |
Personal Guarantee | May be required |
Compared to Apple, Balboa Capital can get you funded more quickly. It has the fastest funding speed out of all of the providers on our list. You can get a loan decision within one hour of submitting an application, and if approved, you could also get same-day funding.
Balboa Capital’s quick funding speed is largely thanks to its application-only process for certain loans. Hard collateral applications for up to $500,000 and soft collateral for up to $350,000 can qualify for a more streamlined approval process with minimal documentation.
This provider offers financing amounts from $3,000 to $500,000. It also has longer repayment terms of 60 months, versus Apple’s 36-month maximum. Minimum qualification requirements include a credit score of 620, annual revenue of $100,000, and at least 12 months’ time in business. To apply, you can submit an online application in under five minutes.
eLease: Best for Bad Credit Equipment Financing
| |
Rates & Fees | |
Financing Amount | $3,000 to $500,000 |
Estimated APR | 8% and up |
Financing Options | Equipment loans and leases |
Financing Term | Up to 60 months |
Eligible Products | No stated restrictions |
Qualification Requirements | |
Credit Score | 500 |
Time in Business | None |
Business Revenue | None |
DSCR | None |
Personal Guarantee | May be required |
eLease has an easier credit score requirement of 500 compared to Apple’s requirement of 640. It’s the lowest minimum credit score requirement in our guide, making it a good option for borrowers with low credit scores. It was also selected for our list of the best equipment loans for bad credit, and there are no minimum requirements for time in business or revenue.
Although the qualification requirements are easy to meet, satisfying this criterion does not guarantee approval. This is because eLease evaluates applications on a case-by-case basis, and having some strengths to your application can improve your chances of getting approved.
One thing to note is that while rates may start as low as around 8%, borrowers with lower credit scores may not qualify for the best possible rates. You’ll also typically need to have a down payment of 10% or more, although this can vary depending on the overall strength of your business credit and finances. To apply, you can visit the eLease website to submit an online application.
Bottom Line
Businesses that utilize Apple products can benefit from Apple business financing as it can allow you to obtain new equipment at a lower upfront cost. The available lease options can also give you the flexibility of regularly updating your equipment. As with all other lending options, you should compare the rates and terms with other providers to determine which is the best fit for your business.
