An Equipment Finance Agreement (EFA) with Regents is treated as a loan where the borrower is the title holder and Regents is a lienholder on the financed equipment. Regents’ EFAs have 3 distinct advantages over traditional bank loans:
- Regents’ EFAs are secured only by the specific equipment being financed. This means that your EFA isn’t secured by all your present and future assets (unlike most bank loans).
- Most bank loans are not fixed-rate but tied to market rates that may go up over the term of the loan. Regents’ EFAs are fixed for the full term.
- Many bank loans contain restrictive covenants that can inhibit your ability to borrow future funds when needed. Regents’ EFAs have no covenants – restrictive or otherwise.
Regents’ Equipment Finance Agreement is a good option for businesses who prefer retaining ownership during the lifecycle of the transaction. Regents’ EFA’s offer tax advantages as the equipment may be depreciated on the business’s balance sheet and the business may be able to deduct the interest expense as well.