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Conclusion

If your company needs to buy equipment, equipment finance agreements can be a great alternative to typical loans or lease agreements. Consider whether you want to invest in the equipment for the long run and make sure to consult with a tax pro to make sure you’ll receive valuable tax benefits before you sign the EFA.

 

Now that you know a variety of equipment financing options, you might like to read our article about the best equipment financing companies and see what they have to offer.

Best Equipment Financing Companies

FAQ

How high do EFA rates typically run?
EFA rates will vary with many factors, such as your business’s financial history and credit, but expect rates between about 5% and 30%.
Can an equipment finance agreement be used with office equipment?
Yes, you can use an EFA to purchase office equipment. Yes, you can use an EFA to purchase office equipment.
Where can I get an equipment finance agreement template?
You can find many EFA templates online or you can work with your company’s lawyer to draft one.
Do I own the equipment when the finance agreement term ends?
Yes, with an EFA, you own the equipment you’re paying for. Once the agreement term ends, you’ll own the equipment and can stop making payments.
What is an EFA supplement?
An EFA supplement is an additional agreement that outlines specific or unique terms that may not be included in the standard EFA template you or the lender use.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me

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