What is an Equipment Finance Agreement (EFA)?

Are you a business that needs equipment? You might have searched “What is an equipment finance agreement (EFA)?” to find answers about this popular financial product. This article will dive into what it is an EFA ad how your business can use it for growing your business.

What is an EFA? An EFA is a loan specifically tailored for buying equipment. Businesses can spread out the equipment cost into low monthly payments over a set timeframe. EFAs allow businesses to get equipment fast and utilize it for their business growth while they make payments.

How An EFA Works

Under an Equipment Finance Agreement, the business receives the equipment upfront and agrees to make monthly payments for an agreed term. In general, an equipment financing agreement stipulates that ownership of the equipment will transfer to the borrower at the end of the financing term.

Equipment financing allows the business to get the equipment they need to generate revenue.

Application Process

The application process for an EFA is typically streamlined and can be completed digitally.

At Beacon Funding, for instance, the process involves a simple one-page application that can be submitted online. This efficient process ensures a fast turnaround time, often resulting in same-day approvals and quick funding.

Approval Criteria

Approval for an EFA at Beacon Funding depends on several factors, including:

• Time in Business: Both start-ups and established businesses can get approved for financing. However, start-ups may be asked to fill out a start-up business plan when they apply.
• Credit Profile: Both personal and business credit histories are considered to assess the applicant's creditworthiness.
• Financial Reporting: Financial statements and reports provide insight into the business's revenue and expenditure patterns.
• Equipment Details: The type, condition, and value of the equipment also play a crucial role in the approval process.

Benefits of an EFA

Low Monthly Payments

One of the key advantages of an EFA is the ability to break down the equipment cost into manageable monthly payments, allowing business owners to conserve their cash flow for other needs. To evaluate if an EFA is right for your budget, try this useful monthly payment calculator.

Fast and Easy Application

Beacon Funding’s digital and streamlined application process ensures that businesses can quickly secure financing with very little downtime.

High Chance of Approval

At Beacon Funding, 70% of applicants are approved, including startups, young operations with limited business history, and even those with challenged credit.

Wide Range of Equipment

EFAs can be utilized to finance a wide range of equipment across various industries, ensuring that businesses have the flexibility to acquire the machines they need to grow and succeed.

This includes tow trucks, landscaping equipment like skid steers and mini-excavators, forestry bucket trucks, septic pumper trucks, as well as embroidery machines and screen-printing machines.

Key Features of an EFA with Beacon Funding

When considering an EFA with Beacon Funding, there are several key features that make it an attractive option for businesses. An Equipment Financing Agreement (EFA) allows businesses to lease or purchase essential equipment with flexible terms, ensuring you have the tools needed for growth and productivity.

Key features of an EFA includes:

• Low Monthly Payments: The equipment cost is spread out into affordable monthly payments.
• Fast and Easy Application: The application process is digital and streamlined.
• High Chance of Approval: Beacon Funding approves 70% of applications, including those from startups, young operations with limited time in business, and those with challenged credit.
• Wide Equipment Types: Beacon Funding specializes in financing and leasing equipment for businesses in a variety of industries, including towing companies, landscapers, and shops in decorated apparel.

By utilizing an EFA, a business can get equipment without incurring large upfront costs and preserve their working capital for other operational expenses.

Application Process

Applying for an Equipment Financing Agreement is a fast and easy process at Beacon Funding. The process is streamlined and includes:

• Submitting an application in minutes. Your application which can be done online, email, or over the phone.
• Provide some basic information. Tell us a little about you, your business, and equipment information.
• Securely submit financial documents. Electronically transfer financial statements at a click of a button with DocuSign.

Why Choose Beacon Funding for Your Equipment Needs?

Choosing Beacon Funding for your equipment needs is a decision that ensures flexibility, efficiency, and high rates of approval. With manageable monthly payments, a streamlined application process, and a strong approval rate, Beacon Funding offers an effective solution for businesses.

Whether you’re a startup, a young operation, or a company facing credit challenges, Beacon Funding provides the support and resources necessary to secure the equipment essential for your growth and success.