Equipment Finance Agreement
Equipment Finance Agreement or “EFA” is an exciting new alternative to leasing
equipment. Many people equate car leasing with equipment leasing, when in fact
they are very different. Some customers who chose not to lease their equipment will choose an EFA because they retain ownership of the equipment from day one.
Instant
$10,000 Working Capital
This option allows you to finance office equipment between $20k & $75k and
instantly qualify for $10k working capital directly paid to you after funding.
This is best for companies that requires the necessary quick capital infusion
without the hassle. No additional papers. One monthly payments. This will be
documented as EFA. Asset restrictions and credit qualifications apply.
Please contact your Finance Specialist for details and information.
$1.00 Buy Out
This option allows you to buy the equipment at the end of the lease term for the
nominal amount of $1.00. This is the best option for companies that intend to
keep the equipment at the end of the lease. This is also known as Capital Lease.
10% or 20% Lease Buyout
This option is a blend between a true lease and a capital lease. Many companies choose this type
of lease if they want a lower monthly payment and have an option to return or
purchase the asset at the end of lease term.
Fair Market Value
This option is designed to meet the tax guidelines defined by the Internal Revenue Service. Operating leases qualifies for "off balance sheet" financing, in that the lease is recorded neither as an asset nor as a liability. Under this lease, the lessor is the legal owner of the equipment. You should check with your tax accountant to learn if your leasing arrangement can qualify as an operating lease. This is also known as Operating Lease.
Deferred Payment
This program is attractive to companies where the equipment will be used for a project that wont' generate revenue for a short period of time, possibly three to six months. The lease is structured so that the initial months have nominal or no payments.
Seasonal Payment
This program is designed for those businesses with seasonal cash flows. For example, we can design a lease where the payments might be lower during the summer months and higher during the rest of the year.
Equipment Refinancing
This program is designed to help our clients recoup their equity investments that may have been previously financed elsewhere. All we need is a payoff quote from the financial institution.