Are they consistent with the characteristics of the commercial loan you discussed with your lender? Or are there discrepancies between what you see on your equipment credit contract and what you expect from your equipment loan? An EFA is like a loan because it creates ownership of the equipment: you get the financing in advance and buy the equipment directly, and then you re-hire the financing over time. The equipment is displayed as an asset in your company`s balance sheet. While the type of equipment you need and how long you plan to use it are essential considerations, sometimes your business has unique needs that also influence the option that is right for you. For example, companies in sectors such as construction, landscaping and masonry may have seasonal variations in their cash flow. At Team Financial Group, we can work with these seasonal changes and create a payment structure that best meets your company`s requirements. A seasonal cash flow may indicate that a bespoke lease offering flexible payment options would be the most appropriate, as was the case for one of our agricultural customers. At the same time, entering the world of equipment-guaranteed credits requires more than some leasing professionals expect. There are many laws that regulate commercial credit, as opposed to leasing. Loans are heavily regulated, while leasing has long been temporarily under the radar of state regulation. Loans include foreign provisions such as financial agreements and revolving credit/repayment contracts, and lenders do not limit collateral to equipment alone, but look at receivables and other assets that may or may not be associated with equipment guarantees. Replacing “less lenders” and “Lessee” with “lenders” and “borrowers” may be quite simple, but it raises the question of the extent to which the parties want to make the EFA appear as a bank credit contract. Similarly, the question of whether “rent” should be replaced by “payment” or a similar word or “capital and interest” relates both to the question of whether the implied interest rate should be disclosed and to the distinction between the EFA transaction and a competing bank loan.