Apple Business Financing: How it Works & Compares to Other Lenders
Robert has over 15 years of experience in sales leadership, finance, and business development. His expertise is highlighted throughout Fit Small Business in content around startup financing, business loans, and buying and selling a business.
This article is part of a larger series on Business Financing.
Apple business financing is an equipment lease that lasts 12 to 36 months and is available to businesses on transactions starting at $4,000. Two lease types are available—fair market value (FMV) and $1 buyout—based on whether you intend to keep the equipment or trade it in at the end of the lease.
Apple Business Financing vs Top Alternatives
Provider | Best For |
|---|---|
(Best Overall) Upgrading Apple equipment frequently | |
Financing for both Apple and non-Apple equipment | |
Flexible leasing options for Apple and non-Apple equipment | |
Businesses with less than one year in operations | |
Bad credit equipment financing | |
Short-term, low-cost financing |
How Apple Business Financing Works
Apple business financing equipment leases are fulfilled by CIT Bank, an online bank offering deposit accounts, business credit cards, term loans, and other business financing. Borrowers apply for Apple business leasing or loans through a web portal (offered by CIT) or by calling Apple Business directly and speaking to a member of the sales staff.
Once the business has selected the equipment it wishes to finance, and the type of term, an application is submitted to CIT, who either approves or declines the equipment lease based on the business and borrower’s creditworthiness, and other factors.
What Apple Business Financing Offers
Two different Apple business leasing programs are available: FMV and $1 buyout. An FMV lease is advertised as a no-interest option to potential borrowers, and $1 buyout leases are charged interest at competitive industry rates.
Who Apple Business Financing Business Loans Are Right For
Business owners who need to purchase Apple computers, tablets, phones, and accessories should consider Apple Business Financing. Both leasing programs are attractive and have their own benefits.
Business owners who need cutting-edge technology: The FMV program is excellent for a business that knows it will want to upgrade its equipment at the end of the lease term and want to take advantage of low monthly payments as well as 0% financing. With the FMV program, buyers will pay off at least 80% of the equipment value over one to three years, at which point they can elect to upgrade or to purchase the equipment at FMV.
Businesses that want to own the equipment long-term: For business owners who want to own their equipment at the end of the lease term, Apple business leasing offers a convenient and simple $1 buyout lease. This option is most similar to a loan and gives businesses ownership at the end of the lease term with the symbolic payment of $1. At this point, business owners can choose to sell the equipment or continue using it.
Apple Business Financing Rates and Fees
- Interest: 0% for FMV; 5.5% to 15% for $1 buyout
- Documentation fee: $0
- Application fee: $0
Apple business financing does not disclose its interest rates, nor does it disclose a rate range. Apple indicates that its FMV lease does not have any interest charges, making this similar to a same-as-cash agreement. Interest is due on its $1 buyout and is likely between 5% to 15% based on equipment leasing standards.
Compared to other leasing options on our list, Apple business financing is likely to offer the most competitive rates and pricing on Apple equipment, and for borrowers utilizing the FMV lease to upgrade equipment, Apple will offer additional discounts, making this an excellent option for businesses that plan to upgrade their equipment consistently.
Apple Business Leasing Terms
- Lease terms: 12 to 36 months
- Minimum order: $4,000
- Financing type: FMV and $1 buyout lease
- Other financing types: None
Apple business financing offers one of the shortest lease terms on our list, starting at one year, and going up to three years at most. With a minimum order of $4,000, businesses are likely to qualify for this program with a couple of MacBooks and assorted accessories, so this program casts a pretty wide net in terms of eligibility.
Apple business financing takes a simple approach to financing, offering two equipment programs; the FMV and $1 buyout lease. Businesses looking for greater flexibility in financing programs may wish to consider offers from other lenders.
Apple Business Financing Qualifications
- Credit score: 640-plus
- Time in business: N/A
- Personal guarantee: Required if you have been in business less than three years
Qualifying for Apple business financing is refreshingly simple. A personal credit score of 640 or better is recommended, although Apple’s financing partner CIT Bank is likely to qualify your business for financing based on additional factors such as strong business tradelines, revenue, and debt service coverage ratio (DSCR).
Apple leaves other criteria, such as time in business, undefined, meaning you may qualify for this program even if your business is a startup. Additionally, Apple business financing requires a personal guarantee from all partners with at least a 20% stake in the business, if your business has been in operation fewer than three years.
Pros and Cons of Apple Business Financing
Apple business financing can be a great way to get needed equipment while keeping upfront costs low. There are several pros and cons to financing your equipment using Apple Business financing, however, and we cover a few here.
Pros of Apple business financing include:
- Upgrade equipment frequently: With an Apple FMV lease, you can upgrade equipment easily, keeping your technology on the cutting edge.
- Keep upfront costs low: With a lease, you can make low monthly payments, keeping most of your cash flow for other business needs.
- Accessories and other costs can be financed: Apple business financing allows accessories and other costs to be rolled into the lease payment.
Cons of Apple business financing include:
- Higher long term costs: Over time, the cost of leasing equipment will be higher, especially if you can get away with keeping equipment longer.
- Difficult for new businesses: Businesses without two years in operation will need to explore other options.
- Creates debt: Having a leasing liability on your books may make your business less attractive to other lenders.
How to Apply With Apple Business Financing
Businesses looking to finance equipment starting at $4,000 can apply for Apple business financing online and filling out an application, with same-day approval and funding available.
Visit Apple Business Financing
CDW: Best for Apple and non-Apple equipment
CDW Corporation is a large provider of technology equipment, offering computers and other hardware from hundreds of manufacturers. CDW’s business financing for Apple equipment is fulfilled by VAR Technology Finance. It should be noted that businesses financing non-Apple equipment may have their financing fulfilled by one of several other equipment financing partners and that the terms for that financing will vary.
CDW Rates and Fees
- Interest: 0% for FMV; variable for $1 buyout leases
- Documentation: $0 documentation on select leases
- Application fee: $0 application fee on select leases
CDW’s solution for Apple business financing bears many similarities to Apple’s own offering, including offering a 0% FMV lease and $1 buyout lease. Like Apple, CDW and VAR do not publish their interest rates on $1 buyout leases. However, they are likely to be between 5.5% and 20% based on industry averages.
Also, like Apple, CDW indicates that documentation and application fees are waived on select leases, although that wording means that you should probably read the contract’s fine print carefully to ensure that your lease qualifies.
CDW Terms
- Lease terms: 12 to 60 months
- Minimum order: $2,500
- Financing type: FMV and $1 buyout
- Other financing types: None
CDW offers somewhat better lease terms on Apple equipment, with lengths from one to five years, which may help businesses keep costs down as well as go longer between equipment upgrades. CDW also offers leases starting at $2,500, meaning businesses contemplating smaller purchases may wish to consider this option. Lease options are simple, like Apple, with an FMV and $1 buyout being the only options.
CDW Qualifications
- Credit score: 680
- Time in business: Minimum 2 years
- Personal guarantee: Yes
Borrowers hoping to get Apple equipment financed through CDW’s lease program should have average or better, and businesses need a minimum of two years in operations to qualify. Although CDW indicates on its website that it is possible to get financing for businesses with less than two years in operations, this does not appear to apply to Apple equipment leases.
How to Apply With CDW
To get started with an equipment lease on purchases of Apple products $2,500 and apply with CDW online, with same-day approvals and funding available. From there, a representative can help you apply with its financing partner.
Crest Capital: Best for Flexible Repayment Options
Crest Capital is an established equipment leasing company that offers a wide variety of flexible repayment options on a variety of different equipment, including Apple technology products, including equipment leases and equipment loans. It’s known for quick, same-day approvals and competitive interest rates. Crest also offers business loans, which makes it a great option if you’re comparing financing options.
Crest Capital Rates and Fees
- Interest: 5.5% to 20%
- Documentation fee: $0
- Application fee: $275 administrative fee
Crest Capital is known for offering very competitive interest rates to businesses with strong credit profiles. Most leases on Apple equipment will average between 5.5% and 9.5%, although Crest will attach a higher interest rate to transactions with more risk involved. While Crest mentions no documentation fees, it does have a standard $275 administrative fee on all of its leases.
Crest Capital Terms
- Lease terms: 24 to 72 months
- Minimum order: $5,000
- Financing type: FMV, $1 buyout, and 10% option leases
- Other financing types: Term loans
Crest Capital lease lengths start at two years, and financing is available on equipment starting at $5,000, of which 25% can be soft-costs such as installation, training, and delivery. Borrowers can select from FMV, $1 buyout, and 10% option leases; and Crest offers a variety of flexible repayment programs such as seasonal, deferred, and step-up—where the monthly payment due grows incrementally based on increased revenues.
Crest Capital Qualifications
- Credit score: 650-plus
- Time in business: 2 years
- Personal guarantee: Yes
Crest Capital has some of the more stringent credit criteria on our list, asking for a minimum credit score of 650 as well as two years in business. However, it does not set a minimum revenue so that businesses with lower revenues can still apply for equipment leases. A personal guarantee is required, and Crest Capital may file for a Uniform Commercial Code (UCC) lien on business assets.
How to Apply With Crest Capital
For application only financing of Apple equipment starting at $5,000 with Crest Capital, apply online to receive same-day approval with no further documentation required.
National Funding: Best for New Businesses
National Funding may be a good alternative to Apple business financing for businesses with six months or more in operations and are known for its relaxed credit criteria, working with borrowers with credit scores as low as 620 on equipment leases. National Funding offers term loans, lines of credit, and merchant cash advance (MCA), which borrowers can compare to the costs of equipment leasing.
National Funding Rates and Fees
- Interest: 8% to 19%
- Documentation fee: $0
- Application fee: $0
National Funding’s interest rates tend to be higher than some other competitors, with a range of 8% to 19%. This is likely due to its generally relaxed credit standards and the ability to finance businesses with only six months in operations. However, borrowers should take note of its Guaranteed Lowest Payment program, which offers to match the lease payment from a competitor.
National Funding Terms
- Lease terms: 36 to 60 months
- Minimum order: $15,000
- Type of financing: FMV, $1 buyout, and 10% option lease
- Other financing types: Term loans, lines of credit, and MCA
National Funding offers standard lease types, including FMV and $1 buyout. The length of lease terms is less flexible, starting at a minimum of three years. Business owners who don’t need a fleet of new MacBooks might find the minimum order of $15,000 difficult to swallow and may want to consider an option like CDW, with a much lower minimum order of $2,500.
National Funding Qualifications
- Credit score: 620-plus
- Time in business: 6 months
- Personal guarantee: Yes
National Funding offers approachable minimum criteria for securing a lease on Apple equipment. Businesses with more than six months in operations have a high likelihood of obtaining funding. Like the other options on this list, a personal guarantee is generally required from partners in the business with a greater than 20% stake.
How to Apply With National Funding
Business owners interested in financing Apple equipment with National Funding can receive quick approvals by filling out a simple application online, with funding available as soon as the same day.
Balboa Capital: Best for Small Businesses With Poor Credit
Balboa Capital makes the list for its relaxed credit criteria, financing borrowers with a 600 credit score or better, as well as its application only financing on leases starting at $3,000. Balboa offers several different lending programs in addition to equipment leasing, including term loans, and MCA as well as lines of credit.
Balboa Capital Rates and Fees
- Interest: 5.5% to 30%
- Documentation fee: No
- Application fee: Unknown
Expect to see interest rates ranging between 5.5% to 30% with Balboa Capital. Borrowers shouldn’t expect to pay additional documentation fees, although application fees may apply. Balboa does not disclose any application fees on its website, and borrowers should ask about any additional fees that may apply.
Balboa Capital Terms
- Lease terms: 24 to 72 months
- Minimum order: $3,000
- Financing type: FMV, $1 buyout, and 10% option leases
- Other financing types: Term loans, lines of credit, and MCA
Balboa offers relatively flexible equipment lease terms for Apple equipment financing, with term lengths ranging between two to six years, and minimum orders starting at $3,000. In addition to FMV and $1 buyout lease types, borrowers interested in 10% option leases can explore that route with Balboa.
Balboa Capital Qualifications
- Credit score: 600-plus
- Time in business: 1 year
- Personal guarantee: Yes
With the most lenient credit criteria on the list, Balboa presents as a good option for newer businesses with poor credit, requiring only one year in operations, and a 600 credit score for financing. Balboa may also require a personal guarantee from the business’s major partners.
How to Apply With Balboa Capital
To apply for Apple equipment financing with Balboa Capital, borrowers can fill out a quick and easy online application, with same-day approvals and financing available.
TigerDirect Business: Best for Short-term Financing Needs
TigerDirect Business Financing is fulfilled through Behalf Financial and stands apart as a good alternative to Apple’s business financing due to the wide variety of technology available in TigerDirect’s inventory, including Apple computers and accessories as well as relatively lenient credit qualifications. Businesses with at least one year of operations and two years of personal credit history can apply for net 30 financing, allowing for no interest if the balance is paid within 30 days.
TigerDirect Rates and Fees
- Interest: 0% on net 30; 1% to 3% monthly thereafter
- Documentation fee: $0
- Application fee: $0
TigerDirect charges a monthly interest rate of between 1% and 3% and no further fees for documentation or applying. For short-term funding, this may be suitable but represents 12.01% to 36.60% annually, compared to between 5.5% to 9.5% on a lease with Crest Capital.
TigerDirect Terms
- Lease terms: 30 to 180 days
- Minimum order: $500
- Financing type: Revolving line of credit
TigerDirect’s Apple equipment financing acts as a revolving line of credit, with term lengths between 30 and 180 days available and a minimum order of $500. This may be preferable to businesses that can pay off equipment quickly and intend to it long term, vs a lease which might have more favorable terms but with no equity in the equipment at the end.
TigerDirect Qualifications
- Credit score: 640
- Time in business: 1 year
- Personal guarantee: Yes
TigerDirect does not publish its minimum credit qualifications, and upon inquiring, indicated that a fair credit score is necessary to obtain credit. However, that can be influenced by other factors such as the strength of the business’s trade lines as well as time in business and revenue. A likely minimum credit score to obtain short term financing with TigerDirect is a 640 credit score, although other factors such as business credit may influence the decision as well.
How to Apply With TigerDirect
To access TigerDirect’s straightforward net 30 or short-term Apple business financing options, you can apply online and receive approvals and financing as quickly as the same day.
Bottom Line
Apple business financing is a cost-effective way to obtain Apple equipment for your business and is particularly cost-effective if you choose to do an FMV lease. There are alternatives to Apple business financing that you will want to consider, including a nearly identical FMV lease option from CDW. Which option fits your business best will depend on whether you intend to buy or upgrade the equipment at the end of the lease, among other criteria.
