Need Funding for AI or Automation? Match the Financing to the Business Expense

Businesses investing in AI and automation often describe the project as one technology expense, but the actual capital need may include several different components: machinery, software, implementation, employee training, integration costs and additional working capital.

If your business already has a defined automation or technology budget, submit the amount and use of funds through the EIN Business Funding Quick Lead Pre-Qualification.

Can Equipment Financing Be Used for Automation?

When a project includes qualifying machinery, production equipment or other business assets, equipment financing may be one category to evaluate. For larger long-term fixed assets, SBA 504 financing may also be relevant depending on the transaction.

What If the Project Includes Software and Implementation Costs?

Costs that are not tied directly to a financeable piece of equipment may require a different structure. Depending on the business profile and provider, a term loan or working-capital product may be more appropriate for certain implementation, expansion or operating expenses.

What Are Typical Term Loan Benchmarks?

The EIN Business Funding guidance identifies approximately 600 to 680+ personal credit, at least one year in business, approximately $100,000+ in annual revenue and positive cash flow as common term-loan benchmarks.

What Are Typical Working Capital Benchmarks?

Working-capital financing commonly uses approximately 600+ personal credit, six to twelve months in business and around $50,000 to $100,000 in annual revenue as typical benchmarks.

What Should a Business Prepare?

Break the project into specific costs. Identify the equipment, software, implementation, staffing or other expenses; then prepare annual revenue, time in business, credit profile, banking information, existing debt and the total requested funding amount.

If your company is actively investing in AI, automation or other productivity technology, complete the EIN Business Funding pre-qualification to explore which financing structure may better fit the actual project.

FAQs

Can a business finance AI or automation projects?
Potentially. The financing structure depends on whether the project involves equipment, software, implementation costs, working capital or a combination of business expenses.

What are common term-loan benchmarks?
The EIN Business Funding guidance identifies approximately 600 to 680+ personal credit, one or more years in business, $100,000+ annual revenue and positive cash flow as typical benchmarks.

Why should automation costs be separated before seeking funding?
Different parts of the project may fit different financing products, so separating equipment, software and operating costs can make the funding need easier to evaluate.