Equipment Financing

An Equipment Finance Contract (EFC) is becoming increasingly popular and may eventually replace your traditional Equipment Lease as the equipment financing tool of the future. The EFC is basically a loan agreement with an equipment finance company like Precision Leasing, however it is different than your typical installment loan agreement you would see from your bank. Here are a few of the differences:

1) COLLATERAL…EFCs are secured by a UCC filing specifically on the equipment being financed and only that equipment, whereas, installment loans with a bank are usually secured by a blanket lien which covers all of the assets of your business.

2) COVENANTS…EFCs very rarely contain restrictive loan covenants that require you to maintain certain balance sheet ratios which in turn means less red tape and micromanagement of your loan, whereas, installment loans more times than not require restrictive covenants that require annual re-qualifying of your loan and even requiring you to get permission to borrow additional funds.

3) RATE ADJUSTMENTS…EFCs are fixed payments for the entire term of the loan agreement, whereas, installment loans are typically indexed to a market rate and therefore the monthly payments are subject to change based on rate fluctuations.

TO APPLY FOR FINANCING (up to $75,000), please complete the application and fax or e-mail it back to Precision Leasing along with the following information:

1) 3 Months Most Recent Consecutive Bank Statements – ALL pages

2) Equipment Quote from established vendor/distributor

TO APPLY FOR FINANCING (greater than $75,000), please complete the application and fax or e-mail it back to Precision Leasing along with the following information:

1) 3 Months Most Recent Consecutive Bank Statements – ALL pages

2) Equipment Quote from established vendor/distributor

3) Company’s Last Two Year’s Audited Financials or Tax Returns

4) Company’s Most Recent Interim Financials (balance sheet and income statement)

5) Last Two Years’ Personal Tax Returns (all guarantors)

Should you have ANY questions or concerns, don’t hesitate to contact us.

Thank you for the opportunity!

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