Equipment financing is business funding for a specific asset, usually secured by that asset, structured as a loan, a lease or an equipment finance agreement. Ravenside Lending, a small-business funding broker in Macon, GA, helps Middle Georgia restaurants, practices and other businesses compare those structures and presents requests to lending partners, which make the credit decision and set rates and terms.
| What it is | Funding for a specific asset, usually secured by that asset |
|---|---|
| Structures | Own with a loan, rent with a lease, or sign an EFA |
| Used equipment | Often possible; partners look closely at age and condition |
| Payment check | Our <a href="/resources/food-truck-financing-calculator/">equipment payment calculator</a> shows a payment and total cost |
| Who decides and prices | The lending partner, never Ravenside Lending |
How equipment financing works
You choose the equipment and get a quote from the vendor. A partner reviews the quote, the business and the asset, and if it approves, pays the vendor directly or reimburses you. You then make fixed payments over a term usually set to the asset's working life. The partner typically records a lien on the equipment, so it can recover the asset if payments stop.
Because the asset secures the debt, equipment financing can be easier to arrange than unsecured funding of the same size. The partner still looks at the business's cash flow, because the payments have to come from revenue.
Loan, lease or EFA
| Equipment loan | Lease | Equipment finance agreement | |
|---|---|---|---|
| Who owns it | You, with a lien until paid | The lessor keeps title while the lease runs | Your business, subject to the partner's security interest |
| At the end | The lien is released | Hand it back, extend, or buy, as the lease allows | You keep it once payments are complete |
| Down payment | Often required | Often the first and last payments up front | Varies by partner |
| Suits | Assets kept for many years | Assets replaced often, or uncertain needs | Owners who want ownership without a traditional loan document |
Tax treatment differs between these structures. Ask your accountant how each would be handled for your business before choosing.
Equipment common in the larger Bibb County, GA sectors
Bibb County, Georgia had 411 food service and drinking place employer establishments in 2023 and 455 ambulatory health care establishments, including 188 physician offices and 73 dental offices (U.S. Census Bureau, County Business Patterns 2023). Those sectors run on equipment: ranges, hoods, walk-in coolers and POS systems in kitchens; exam tables, imaging units, sterilizers and dental chairs in practices. The industry pages describe their funding patterns, and mobile food vendors can test numbers in the food truck payment calculator.
Medical equipment financing
Clinical equipment is expensive, specialized and replaced on its own schedule. Partners that finance it look at the practice's collections history and the equipment's resale market. Some practices lease technology that changes quickly and buy equipment they expect to keep. Have the vendor's quote, including installation, training and service contracts, before you call, because those soft costs may or may not be financed with the equipment.
Pre-owned equipment and business vehicles
Used equipment can often be financed, though partners look harder at its age, condition and resale value, and terms may be shorter than for new equipment. Work vehicles used by a business, such as a contractor's pickup or a service van, can also be financed as equipment. Ravenside Lending does not arrange trucking or freight fleet financing.
Equipment loan, or a credit line instead?
An equipment loan fits one identifiable purchase with a long useful life. A line of credit suits smaller, recurring purchases and repairs. A broader project that mixes equipment with build-out costs may suit a business term loan instead.
Liens on equipment in Georgia
Partners usually record their interest in financed equipment with a UCC financing statement. Before applying, search the Georgia UCC index for your business name to see what is already on file; the Georgia UCC search guide shows how. A blanket lien from another lender may need to be addressed first. The four steps explain what happens after that.
By Ravenside Lending · Updated
