Own your equipment from day one, and pay for it over time
An Equipment Finance Agreement is a simple way to buy equipment: the lender pays the seller, you own the equipment and make fixed monthly payments until it is paid off. No lease residual, no buyout at the end.
How an EFA works, step by step
An EFA works much like a loan secured by the equipment you are buying.
EFA vs. leases vs. a bank loan
| EFA | $1 buyout lease | FMV lease | Bank loan | |
|---|---|---|---|---|
| Who owns it during the term | You | Lessor (you own it for $1 at the end) | Lessor | You |
| End of term | Nothing owed | Pay $1 | Buy, renew or return | Nothing owed |
| Monthly payment | Standard | Standard | Lowest | Often lowest rate |
| Section 179 | Yes | Yes | No (payments generally deductible) | Yes |
| Down payment | Often $0 (OAC) | Often $0 (OAC) | Often $0 (OAC) | Usually 10–20% |
| Approval speed | Often next day | Often next day | Often next day | Weeks |
| Paperwork | Application only up to about $250K | Application only up to about $250K | Application only up to about $250K | Full financials |
More detail: lease vs. EFA · $1 buyout vs. FMV leases · types of equipment leases
What an EFA payment can look like
Payment = equipment cost × rate factor. Example only; your rate depends on credit, time in business, equipment and term. Try your own numbers in the payment calculator.
Equipment financing, explained
Funding your equipment.
Your trusted source for business capital.
Why small businesses choose an EFA
What it takes to qualify
- Active business entity (startups considered)
- Personal guaranty from owners (corp-only available for established companies)
- Minimum 600 credit for smaller deals; 650+ for larger ones
- Vendor quote or invoice
- No bankruptcies in the last 7 years and no unresolved tax liens
- Financial statements for requests over about $250,000
See where you stand with the approval indicator.
An EFA is a commitment, not a rental
Because you own the equipment, it's yours to insure, maintain and eventually sell or trade in, and the agreement can't be cancelled if business slows. If you expect to replace the equipment in a few years, or you want to hand it back at the end, compare an FMV lease. If you want to own it and take the tax deduction, an EFA is usually the cleanest option.
Get an EFA in four steps
- Send the quoteFrom any dealer, private seller or auction.
- Apply in minutesA one-page application covers requests up to about $250K.
- Sign electronicallyReview the fixed payment schedule and sign.
- We pay the vendorUsually 1–5 days after signing and delivery confirmation.
Equipment Finance Agreement questions
What is an equipment finance agreement?
An EFA is a financing agreement where the lender pays for the equipment and you own it from day one, repaying with fixed monthly payments. The lender holds a lien on the equipment until it is paid off.
Is an EFA a loan or a lease?
It works like a loan. You own the equipment, there is no residual or buyout, and it is generally treated as a purchase for tax and accounting.
Does an EFA qualify for Section 179?
Generally yes, because you own the equipment. Confirm the details with your CPA.
Can I pay off an EFA early?
Yes, with no prepayment penalty fee. Because the agreement can't be cancelled, the payoff covers the remaining balance, and we show you that figure before you sign.
Do I need a down payment?
Often not. Qualified borrowers can finance with $0 down; startups and weaker credit may need a down payment.
Can I finance used equipment with an EFA?
Yes. New and used equipment from dealers, private sellers and auctions can be financed, as long as it can be verified.
Ready to own your next piece of equipment?
Send us the quote and get approved, often by the next day.
Example payments are illustrations only, not quotes. All financing subject to credit approval. Liberty Capital Group, Inc. is not a tax advisor; consult your CPA. NMLS #2009539 · CA DFPI #60-DBO49692.