What counts as a soft cost in equipment financing?

Freight, rigging, installation, training, tooling, software, extended warranties, and in some cases sales tax — anything necessary to put the equipment into service that is not the hardware itself.

Can 100% of soft costs be financed?

Not typically. Because soft costs have little or no collateral value, the financeable share is usually limited and is determined during review.

Should soft costs be on the same invoice as the equipment?

It helps. Items on the vendor's itemized quote are far easier to include than costs presented later or billed by unrelated parties.

Financing solution

Soft-Cost Financing

Soft costs are the non-hardware expenses required to put equipment into service: freight, rigging, installation, training, tooling, software, extended warranties, and sometimes sales tax. They can often be included in an equipment finance structure when they appear on the vendor invoice and are tied to placing the asset in service. Inclusion and limits are decided during human review.

Who this may serve

Installed machinery where rigging and setup are significant
Systems that require operator training or commissioning
Purchases bundling software, licensing, or warranty coverage
Projects where paying setup costs in cash would strain the month

How it works

1
Step 1
List every line item on the project, hardw
List every line item on the project, hardware and non-hardware.
2
Step 2
A specialist flags which items are typical
A specialist flags which items are typically financeable and which usually are not.
3
Step 3
You apply through the secure application c
You apply through the secure application channel with the full quote attached.
4
Step 4
A human reviewer sets the final structure,
A human reviewer sets the final structure, including how soft costs are treated.
5
Step 5
Vendors are paid per the approved structur
Vendors are paid per the approved structure.

Documentation typically requested

Itemized vendor quote showing soft-cost line items
Installation or commissioning scope, if separate
Basic business information and authorized signer contact

Sensitive items such as Social Security numbers, dates of birth, and bank details are collected only in the official secure application — never in chat, email, or a web form comment field.

Things to weigh

Soft costs carry no collateral value

Because training or freight cannot be repossessed, the share of a structure they can represent is usually limited.

Itemize early

Adding soft costs after documents are drawn means rework. Put every line item on the initial quote.

Sales tax handling

Tax treatment varies by state and structure. Ask specifically how it will be handled in your file.

Illustrative example — not a rate or approval

A food producer is installing a packaging line where freight, rigging, and commissioning make up nearly a third of the itemized quote. The specialist flags which lines are typically includable before the file is built.

This scenario is a hypothetical illustration to explain how the process typically runs. It is not an approval, a quote, or a guarantee of any outcome.

Check your scenario

Share non-sensitive details and a specialist will outline structure options and the documentation your file needs.

Start a scenario check Browse the answer center

Editorial provenance

Human reviewer: Reviewed by: AILCO Credit & Compliance (placeholder reviewer)
Last reviewed: 2026-07-28

Citations & sources

IRS Publication 946 — How to Depreciate PropertyGeneral reference for equipment depreciation concepts. Confirm with your CPA.
U.S. Small Business Administration — Financing basicsGeneral small-business financing education.

Soft-Cost Financing

Who this may serve

How it works

List every line item on the project, hardw

A specialist flags which items are typical

You apply through the secure application c

A human reviewer sets the final structure,

Vendors are paid per the approved structur