Equipment Financing Decision Guide

Compare the complete economic and contractual effect of a facility—not just the advertised monthly payment. Programme eligibility, lender pricing and tax treatment must be confirmed for the applicant and transaction.

Last reviewed: 3 October 2026

Facility comparison

Route	Commercial effect	Required review
Term loan	You own the equipment; the lender usually takes security	Compare APR/effective rate, fees, security, covenants, prepayment and total cash paid
Finance lease / hire purchase	Payments fund use and may lead to ownership, depending on the contract	Confirm legal owner, purchase option, tax treatment, maintenance, insurance and early termination
Operating lease / rental	Access for a defined term without assuming ownership	Compare usage limits, return condition, downtime responsibility, extensions and end-of-term charges
Vendor finance	Manufacturer or dealer arranges the facility	Compare the machine price and finance terms separately; test whether a discount was traded for financing
Cash	No finance liability, but cash is committed immediately	Compare liquidity, opportunity cost, warranty, delivery risk and the return from alternative uses of funds

Lender evidence pack

Entity, ownership and authority to borrow
Recent financial statements, management accounts and cash-flow forecast
Existing debt, security interests and contingent liabilities
Equipment quotation, specification, seller, location and condition evidence
Independent inspection or valuation where required
Business case: capacity, revenue, savings, utilisation and downside scenario
Insurance, installation, permits, training and maintenance plan
Source of deposit and proposed repayment account

Decision tests

1. Total cash: deposit + scheduled payments + fees + balloon/purchase option + mandatory services.
2. Coverage: test repayments against conservative cash flow, seasonality, downtime and delayed commissioning.
3. Security: map guarantees, liens, cross-defaults, covenants and restrictions on sale or relocation.
4. Exit: price early repayment, refinance, replacement, return and default outcomes before signing.
5. Currency: if equipment and debt cash flows differ, model exchange-rate movement and hedging cost.
6. Tax: obtain transaction-specific advice; accounting ownership and tax relief can differ from legal title.

Offer comparison schedule

Put every offer on one schedule using the same equipment price, term and assumptions.

Cash price before finance

Deposit and net amount financed

APR / effective annual rate

All setup, legal and documentation fees

Payment timing and frequency

Balloon or purchase-option amount

Total cash paid over the term

Security and personal guarantees

Covenants and reporting duties

Prepayment and late-payment charges

Insurance and maintenance obligations

Default, repossession and dispute terms

Official programme entry points

These links lead to the responsible public bodies. Do not rely on limits or rates copied into a marketplace guide; verify the current programme page and the accredited lender's written offer.

United States — SBA 7(a)Official eligibility, permitted uses and lender route United States — SBA 504Long-term financing for major fixed assets through approved lenders Canada — CSBFPOfficial small-business financing programme and participating lenders United Kingdom — Growth Guarantee SchemeCurrent government-backed finance entry point and accredited lenders Germany — KfWOfficial business finance programme finder India — SIDBIOfficial MSME finance products and application channels Australia — business.gov.auOfficial grants and programmes finder

Scope: EasiMachines does not arrange finance, make credit decisions or provide financial, accounting, tax or legal advice. Availability and terms vary by lender, applicant, asset and jurisdiction. Obtain written offers and qualified advice before committing.

Loading EasiMachines…

Facility comparison

Route	Commercial effect	Required review
Term loan	You own the equipment; the lender usually takes security	Compare APR/effective rate, fees, security, covenants, prepayment and total cash paid
Finance lease / hire purchase	Payments fund use and may lead to ownership, depending on the contract	Confirm legal owner, purchase option, tax treatment, maintenance, insurance and early termination
Operating lease / rental	Access for a defined term without assuming ownership	Compare usage limits, return condition, downtime responsibility, extensions and end-of-term charges
Vendor finance	Manufacturer or dealer arranges the facility	Compare the machine price and finance terms separately; test whether a discount was traded for financing
Cash	No finance liability, but cash is committed immediately	Compare liquidity, opportunity cost, warranty, delivery risk and the return from alternative uses of funds

Lender evidence pack

Entity, ownership and authority to borrow

Recent financial statements, management accounts and cash-flow forecast

Existing debt, security interests and contingent liabilities

Equipment quotation, specification, seller, location and condition evidence

Independent inspection or valuation where required

Business case: capacity, revenue, savings, utilisation and downside scenario

Insurance, installation, permits, training and maintenance plan

Source of deposit and proposed repayment account

Decision tests

1. Total cash: deposit + scheduled payments + fees + balloon/purchase option + mandatory services.

2. Coverage: test repayments against conservative cash flow, seasonality, downtime and delayed commissioning.

3. Security: map guarantees, liens, cross-defaults, covenants and restrictions on sale or relocation.

4. Exit: price early repayment, refinance, replacement, return and default outcomes before signing.

5. Currency: if equipment and debt cash flows differ, model exchange-rate movement and hedging cost.

6. Tax: obtain transaction-specific advice; accounting ownership and tax relief can differ from legal title.

Offer comparison schedule

Put every offer on one schedule using the same equipment price, term and assumptions.

Cash price before finance

Deposit and net amount financed

APR / effective annual rate

All setup, legal and documentation fees

Payment timing and frequency

Balloon or purchase-option amount

Total cash paid over the term

Security and personal guarantees

Covenants and reporting duties

Prepayment and late-payment charges

Insurance and maintenance obligations

Default, repossession and dispute terms