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Arkansas Equipment Financing

Calculate equipment loan and lease payments for your Arkansas business. Compare financing options and maximize tax benefits.

Arkansas Business Overview

Key economic indicators for equipment financing decisions

Population

3.0M

State Tax Rate

6.5%

Business Climate

Low cost of living, growing logistics hub, agriculture-focused

Top Industries in Arkansas

Major sectors driving equipment financing demand

Agriculture
Manufacturing
Retail
Transportation

Most Financed Equipment in Arkansas

Equipment types commonly purchased by Arkansas businesses

Agricultural Equipment
Transportation Trucks
Manufacturing Equipment

Understanding Arkansas's Tax Advantage

How Arkansas's 6.5% state income tax affects equipment financing

When you purchase equipment, you can claim tax deductions at two levels: federal and state. Here's how it works in Arkansas:

Federal Tax Savings (All States)

  • Section 179: Deduct up to $1,250,000
  • Federal corporate rate: ~21%
  • Example: $100K equipment = ~$21K federal savings

Arkansas State Tax Savings

  • State income tax rate: 6.5%
  • Same Section 179 deduction applies
  • Example: $100K equipment = ~$6,500K state savings
  • Total savings: ~$6,521K (federal + state)

Calculate your exact savings: Use our Section 179 calculator to see the federal and state tax benefits for your specific equipment purchase.

Equipment Financing Options in Arkansas

Compare different financing methods for your business

Equipment Loans

Traditional financing where you own the equipment from day one. Ideal for Arkansas businesses looking to build assets and claim Section 179 deductions.

Equipment Leases

Lower monthly payments with options to upgrade or return equipment. Popular among Arkansas businesses in agriculture that need flexibility.

Section 179 Tax Benefits

Arkansas businesses can deduct up to $1,250,000 in equipment purchases. Combined with Arkansas's 6.5% state tax rate, this can significantly reduce your net equipment cost.

Equipment Financing FAQs for Arkansas

Common questions about equipment financing in Arkansas

What equipment financing options are available in Arkansas?

Arkansas businesses can access equipment loans, equipment leases, sale-leasebacks, and lines of credit. Many Arkansas lenders also offer SBA 504 loans for larger equipment purchases.

What are the typical interest rates for equipment loans in Arkansas?

Equipment loan rates in Arkansas typically range from 5% to 30% depending on credit score, equipment type, and loan term. Well-qualified Arkansas businesses can secure rates as low as 5-8%.

Can Arkansas businesses claim Section 179 tax deductions?

Yes! Arkansas businesses can deduct up to $1,250,000 in equipment purchases under Section 179 for tax year 2025. This federal tax benefit is available to all U.S. businesses, including those in Arkansas.

How does Arkansas's 6.5% state tax rate affect equipment financing?

Arkansas's 6.5% state tax rate affects the overall tax benefits of equipment financing through Section 179 deductions and depreciation. Use our calculators to see the total tax impact.

What types of equipment are most commonly financed in Arkansas?

In Arkansas, the most commonly financed equipment includes Agricultural Equipment, Transportation Trucks, Manufacturing Equipment. These align with Arkansas's top industries: Agriculture, Manufacturing, Retail, Transportation.

How long does it take to get approved for equipment financing in Arkansas?

Arkansas businesses can typically get approved for equipment financing in 24-48 hours with online lenders, or 1-2 weeks with traditional banks. Pre-qualification is often instant.

Ready to Finance Equipment in Arkansas?

Use our free calculators to compare financing options and find the best solution for your Arkansas business.