Which option fits your needs?
Learn more about each one of our structures and how they might work for you. We go into detail about key attributes of each structure and what things you might want to consider when choosing a structure.
An EFA is one of the most popular and versatile equipment finance options. Think of it as a loan that’s custom-tailored for equipment purchases. If you want to own the equipment outright, are acquiring long-life assets, or want to leverage some pretty great tax benefits, an EFA might be a great fit.
Key Pros
- Super versatile
- Accelerated Section 179 tax benefits
- 100% financing
- Little to no money down
- You own the equipment (from day 1)
- No buyout or residual at end of term
- Fixed payments and rate
- No collateral needed (other than the financed equipment)
Things to Consider
- There’s no option to upgrade or return equipment at the end of term – you’re the owner. If you’re looking to keep the option to return/upgrade open, an FMV or Technology Lease may be a better fit.
- Since you’re the owner of the equipment, you take on the depreciation risk if the equipment becomes obsolete. That’s why this structure is ideal for equipment with a long useful life.
If tax benefits are important to you and you intend to own the equipment (not return or upgrade in the next few years), a Capital Lease is a great option to consider.
Key Pros
- Accelerated Section 179 tax benefits + bonus depreciation
- You own the asset at the end of term
- Low buyout (typically $1)
- Fixed payments and rate
- Treated like a purchase for accounting and tax purposes
Things to Consider
- There’s no option to upgrade or return equipment at the end of term – you’re the owner. If you’re looking to keep the option to return/upgrade open, an FMV or Technology Lease may be a better fit.
- Since you’re the owner of the equipment, so you take on the depreciation risk if the equipment becomes obsolete. That’s why this structure is ideal for equipment with a long useful life.
- Can appear as debt on balance sheet.
Also known as an Operating or Residual Lease, the FMV is great if you’re looking for low upfront costs, affordable payments, and want to keep the option for return or upgrade open…making it an ideal structure for equipment with short life cycles.
Key Pros
- Lower monthly payments
- End of term flexibility (return, renew, or buy)
- May not appear as debt on balance sheet
- Monthly payments are deductible as an operating expense
Things to Consider
- Note that monthly payments are lower with this option because there’s a balloon/residual payment (fair market value) due at the end of term. This can vary depending on how equipment is valued at that time.
- You are not the equipment owner unless/until you purchase at term end.
- If you choose to purchase, total cost to finance may end up slightly higher than other structures depending on end of term equipment value.
A type of FMV Lease, this structure is set up specifically for easy refresh cycles on fast-moving technology. With it, you have no ownership risk. When equipment becomes obsolete or you want to “trade up” for the newest in tech, simply let us know your plan and we’ll take care of the old and bring in the new!
Key Pros
- Lower monthly payments
- Short (24-36 month) terms
- No need to worry about resale or obsolescence
- No ownership risk
- May not appear as debt on balance sheet
- Monthly payments are deductible as an operating expense
Things to Consider
- You are not the equipment owner unless you opt to purchase at term end.
- If you choose to purchase, total cost to finance may end up slightly higher than other structures depending on end of term equipment value.
If you’re looking to finance something other than capital equipment, we’ve got a great unrestricted cash option to propel your business forward. Working Capital cash can be used for virtually anything – covering payroll, inventory, marketing expenses, or daily operating costs. Many of our customers use it to manage rapid growth, cover the gap in long accounts receivable cycles, and as a safety net when unexpected expenses arise. Learn more…
Key Pros
- Can be used for literally anything
- Quick access to cash (same or next day)
- Flexible terms and repayment options
- There when you need it
Things to Consider
- Since there’s no collateral, rates are a little bit higher than our equipment finance structures. If you’re financing equipment, we’d suggest utilizing an EFA or lease structure.
Looking for a large write-off this year? Or big savings spread over time?
You’ll still want to consult with your tax advisor, but our team knows their way around tax implications and how to set you up with the right structure to maximize your savings. We also offer promotions to set yourself up for growth without breaking the bank.
Now that you're well-versed in our base offerings, here's a breakdown of our special structures:
Deferred payments
Get a little bit of buffer between signing and the start of payments. Typically it’s 3 months before a monthly payment is due.
Seasonal payments
We can structure financing to have larger payments during your busy time and give you a break in the months you’re typically slower.
Start-up financing
Newer businesses struggle to get approved for financing - making it tough to grow. We love start-ups and have options to set you up for success!
Little to no $ down
Many of our customers want to conserve cash on hand. We can structure financing with little to no money due upfront, pending approval.
Step-up/Learning Curve payments
Lets you start small and work your way up to regular payments. A great option when new equipment will generate revenue but needs time.
Leaseback
We’ll buy back your owned equipment (freeing up capital) and you can lease the equipment back from us with affordable payments and tax benefits.
*The finance structures above are subject to credit and equipment approval and time in business. Not all customers will qualify for special structures. To be eligible for a leaseback, the equipment's current value and remaining useful life must meet certain criteria.
Pre-Qualification: a free tool to discover your buying power.
Buying new equipment for your business is a big deal. Let financing be the easy part. Once you decide which equipment to move forward with, we’ll be ready to set you up with an affordable monthly payment that works within your budget and needs.
Pre-qualification is a free, no obligation service we provide to help you determine your buying power and discover what options are available. Curious what you could afford?
When you’re ready, we’ll be here.
What happens at the end of term?
Early Payoffs
No matter what structure you choose, there’s never an early payoff penalty. You’re free to pay equipment off whenever you want.
Returns and Upgrades
Equipment financed with an EFA or Capital Lease is not eligible for return or upgrade. With an FMV or Technology Lease, you have the option to return the equipment at the end of term as well as upgrade to the latest in technology.
Purchasing
Buyouts will vary based on your chosen structure. With an EFA or Capital Lease there’s usually nothing additional due at the end of the term. You make your last payment, then you own the equipment! With an FMV or Technology Lease, if you opt to purchase, you’ll have a balloon payment at the end of term based on the fair market value at that time.
Renewals
On certain agreements and equipment, you may be eligible to renew your lease at the end of term. This is designed to extend the length of your existing lease for a set term (usually 6-12 months). It’s a great option when you have a structure with a large buyout and you want to keep making payments vs. a large lump sum.
Why work with a direct, niche lender?
Speed and ease are the name of our financing game. There are real advantages to working with a specialized lender who understands your business.
- Approvals
- Simple Process
- Personal Approach
- Direct Funding
Still have questions?
Our team is ready to help! Let us know what you’re after and we’ll get the right person on it.