If you’re like many business owners, you may have asked at one time: How do I finance equipment? While it may be tempting to call your local banker or check the limits on your company credit cards, a better option is often equipment financing through a dedicated equipment financing company such as Advantage+.
Advantage+ offers a unique tool to help business owners answer the question: How do I finance equipment? Using an EFA (Equipment Finance Agreement), Advantage+ can lend an owner money to buy needed equipment, and the business owner then makes Advantage+ monthly payments on the loan. Since the equipment itself provides the security on the loan, loans are quick to secure. Similar to a lease agreement, borrowers can deduct both the equipment depreciation and the interest portion of the monthly payment as business expenses.
How does an EFA differ from a lease? A lease is also a fixed-term obligation with equal monthly payments, but the leasing company, not the business, owns the property, so the business is just acquiring the use of the property, not the property itself in the transaction. With the EFA, the entire purchase is financed – cost, tax and shipping, and the business owns the property being financed.
EFA’s are more convenient for equipment vendors because they can count transactions with finance agreements as regular sales that are taxed as normal, rather than having to figure invoices without tax and keeping track of the exemptions.
Can we answer any more questions like: How do I finance equipment? Just get in touch with the friendly, helpful people at Advantage+. Click here to contact us.