Glossary of Loan & Lease Products
This product is used to purchase equipment but rather than being for a lump sum, the agreement is for a specific piece of equipment. Financing equipment allows you to spread the cost over time and/or preserve working capital. With any equipment purchase, there are tax deductions and bonus depreciation.
This is a loan for a lump sum that is deposited into your account to be used as you see fit. It can be combined with other financing products such as equipment leases.
This type of loan allows a business to pledge its receivables and/or inventory as collateral for working capital.
Sales Lease Back
This agreement gives you the opportunity to finance a recent cash purchase and receive the money back.
This agreement allows you to refinance debt from an existing loan or lease into a new equipment finance agreement.
Fair Market Value Lease (FMV Lease)
With this financing, you essentially rent equipment for a specific period of time. At the end of the term, you can either return the equipment or purchase it for its Fair Market Value (FMV). The term of this agreement is typically determined by the useful life of the product in your setting and the warranty of the equipment.
Small Business Administration Loan
Commonly used to cover the costs of non-financeable items needed to grow your small business, this lump sum loan can be used as you see fit. Small business loans can be ideal for bridging a gap in cash flow such as covering rent during a slow season or covering the cost of hiring additional staff to expand the business.
Commercial Real Estate Loan
This product assists businesses in refinancing or acquiring commercial real estate.
This is a short-term loan used until permanent financing can be secured or an existing obligation resolved. It allows you to meet current obligations by providing immediate cash flow.