What Are Soft Costs in Equipment Financing—and Can You Finance Them?

More often than not equipment finance deals have extra costs, the sticker price is only part of the equation. You have delivery fees, taxes, installation, software,maybe even training. All of these fall under a category called soft costs, and if you're not planning for them, you could end up paying out of pocket—or worse, delaying your project.

   The good news? Most lenders let you finance these costs along with the equipment up to a percentage of the equipment cost. Here's what that looks like in practice.

What Counts as a Soft Cost in Equipment Financing?

  Soft costs are indirect expenses related to your equipment purchase that don’t show up as part of the physical machine. These often include:

• Delivery and freight charges

• Installation and setup fees

• Training or onboarding costs

• Software, licenses, or customization tied to the equipment

• Maintenance plans or warranties

• Engineering or project management fees

  
  

  Think of them as all the things you need to get the equipment up and running.

How Much Can You Finance?

   Most lenders that offer equipment financing allow you to roll soft costs into your loan, typically up to 20–30% of the total amount. That means if you're financing a $100,000 piece of equipment, you may be able to include an extra $20,000–$30,000 in associated costs—preserving your cash flow and keeping the project moving.

Not every lender treats soft costs the same, though. Here’s what helps:

• Having detailed quotes or invoices that break out the soft cost line items

• Making sure the costs are directly tied to the equipment being financed

• Communicating early—before documents go out—so your loan request is structured correctly

  
  

Why It Matters

   You don’t want to be surprised with a $15,000 invoice for installation after your equipment is delivered—especially when that cost could’ve been included in your financing.

  By identifying soft costs upfront and working with a lender who understands your full project scope, you can:

• Keep more cash on hand

• Avoid delays due to surprise expenses

• Secure a cleaner, more comprehensive financing package

Bottom Line

  If you're planning to finance equipment, soft costs are a part of the deal—whether you plan for them or not. The key is making sure your financing request reflects the full cost of getting operational, not just the sticker price on the machine.

   Want help structuring an equipment loan that covers soft costs? Let’s talk it through, book your free strategy call now.

About the Author

   Jared Holmes is the founder of Brilliance Funding Partners, where he helps business owners navigate the commercial lending landscape with confidence. With 9 years of hands-on experience in SBA lending, equipment financing, and working capital solutions, Jared focuses on asking the right questions and delivering financing strategies that make sense for each business. Connect with Jared for a personalized conversation about your o