Equipment financing pays for, or gives the use of, a specific business asset through a loan, a lease or an equipment finance agreement, usually on a fixed payment schedule with the equipment as security. Ivyview Lenders, a small-business funding broker in Greenville, North Carolina, helps Pitt County contractors, restaurants, clinics and shops compare the three and introduces them to lending partners, which set terms.
| What it is | Funding tied to a specific piece of equipment |
|---|---|
| Structures | Equipment loan, lease, or equipment finance agreement (EFA) |
| Security | Usually the equipment itself, by UCC filing or a lien on the vehicle title |
| Starting point | A written quote or invoice from the seller |
| Who decides | The lending partner sets terms, including any down payment |
| Office | 623 S Pitt St #24, Greenville, NC 27834 · (252) 318-3595 |
Three ways to finance equipment
| Equipment loan | Lease | Equipment finance agreement | |
|---|---|---|---|
| Who owns it during the term | You do; the lender holds a lien | The lessor | You do, under the agreement |
| End of the term | The lien is released once paid | Return, renew or buy, as the lease allows | The equipment is yours once payments are complete |
| Money up front | A down payment is often requested | Sometimes, or advance payments | Varies by partner |
| Fits when | You want to own long-lived equipment | You plan to upgrade or want flexibility | You want ownership on a simple fixed schedule |
Names vary between companies, and the agreement controls, not its title. Read what it says about ownership, the last day of the term, and who pays insurance, maintenance and taxes.
End-of-term choices on a lease
Leases differ most at the end. Some give you the option to buy the equipment at its fair market value at that time. Others set a nominal buyout, which makes the lease work much like a purchase. Some simply require you to return the equipment in good condition. Each is treated differently for accounting and taxes, which is a question for your accountant.
Ask the partner to put in writing exactly what happens on the last day of the lease and what it would cost to keep the equipment.
New, used and the extras on the invoice
Used equipment can usually be financed, but partners may look harder at its age, hours, condition and resale value, and may offer a shorter term. A detailed dealer invoice is easier to finance than a private sale, which may need proof of ownership and a lien search.
Ask early whether delivery, installation, training or software can be included. Some partners finance those soft costs with the equipment; others finance only the equipment.
With titled equipment such as work vans, pickups and trailers, the lender's name goes on the title as lienholder. Equipment without a title is usually covered by a UCC financing statement instead; the guide to UCC liens in North Carolina explains what that filing means and how it is released when you pay off.
What Pitt County businesses finance
Contractors and specialty trades
Pitt County had 237 specialty trade contractor establishments with paid employees in 2023, including 57 plumbing, heating and air-conditioning contractors and 40 electrical contractors (U.S. Census Bureau, County Business Patterns 2023). Their lists run from excavators and skid steers to service vans and diagnostic tools. See financing for contractors and the trades.
Kitchens and dining rooms
Ranges, hoods, walk-in coolers, dish machines and point-of-sale systems are common restaurant requests. Restaurant financing covers equipment alongside remodels and cash-flow needs.
Clinics and practices
Imaging systems, dental chairs, sterilizers and practice technology. Clinical equipment that stays in service for years suits a longer term; technology that will be replaced sooner may suit a lease. See medical and dental practice financing.
Equipment financing or a term loan?
When the purchase is one identifiable piece of equipment, equipment financing usually fits better than a general term loan: the equipment secures the deal, and the term can be matched to how long the equipment will be useful.
A term loan makes more sense when the project mixes equipment with a build-out, inventory or other costs that secure nothing on their own. Run either structure through the loan calculator with an amortization schedule, using the numbers on an actual offer.
What partners look at
- the quote: seller, make, model, year, condition and price;
- how long the business has operated, its revenue and its bank statements;
- credit history for the business and often the owners;
- existing debts and liens, including any blanket lien that could conflict with a new equipment lien;
- how the equipment will earn its keep, such as a new contract or added capacity.
How Ivyview Lenders helps
Ivyview Lenders connects you with lending partners; partners make credit decisions and set rates and terms. Bring the quote, and tell us how many years you expect to keep the equipment working. We will talk through whether a loan, a lease or an EFA lines up with that, and take the request to partners that finance that kind of equipment. Call (252) 318-3595 or start a request.
By Ivyview Lenders · Updated