Equipment financing funds the purchase or lease of a specific asset, such as a work vehicle, an oven or a dental chair, with that asset as collateral. Silvershore Funding Group, a small-business funding broker in Flagstaff, Arizona, explains loans, leases and equipment finance agreements, and connects Coconino County owners with lending partners, who decide and set rates and terms.
| What it pays for | A named asset: vehicle, machine, kitchen or clinical equipment |
|---|---|
| Structures | Equipment loan, lease, or equipment finance agreement |
| Collateral | Usually the equipment itself |
| Partners usually review | The quote, the asset, revenue and credit |
| Who decides | The lending partner, not Silvershore Funding Group |
| Office | 10 N Leroux St, Flagstaff, AZ 86001 · (928) 239-1321 |
Three ways to finance equipment
| Equipment loan | Lease | Equipment finance agreement (EFA) | |
|---|---|---|---|
| Who owns it during the term | The business, with the lender holding a lien | The lessor | The business, with the financer holding a security interest |
| Payments | Principal and interest installments | Lease payments for use of the asset | Fixed installments, structured much like a loan |
| At the end | Lien released when paid off | Return, renew or buy, depending on the lease | Business owns it outright |
| Often chosen when | You want to own the asset | Equipment dates quickly or you may upgrade | You want ownership with a simple contract |
Lease end options differ a lot. Some leases let you buy the equipment for a nominal sum at the end; others set the purchase price at fair market value at that time, which is unknown until then. Ask which one an offer is before comparing payments, because the lower payment often comes with the uncertain buyout.
How equipment financing works
- Get a quote. The vendor's quote names the make, model, year, condition and price.
- Request financing. The partner looks at the asset and the business together.
- The partner pays the vendor. Funds normally go to the seller, not to your account.
- You make payments. Installments or lease payments run for the term, while the business uses the equipment.
- The lien comes off. When a loan or EFA is paid, the partner releases its claim; a lease ends as the contract says.
For titled vehicles, the partner is usually listed as lienholder on the title. For most other equipment, it records its claim with a UCC financing statement, which our Arizona UCC records guide explains how to find and read.
New or used equipment
Used equipment can be financed, but partners look harder at it: age, hours or mileage, condition and whether the seller is a dealer or a private party. Expect questions such as the serial number, an inspection or photos, and in some cases a shorter term than for new equipment. Private-party sales may need extra paperwork to confirm the seller actually owns the asset free of liens.
Equipment loan, line of credit or term loan?
An equipment loan or EFA ties the financing to the asset, which often makes it the most direct route for one machine or vehicle. A term loan fits better when the purchase is part of a larger project, such as a remodel that includes new equipment, installation and finishing work. A line of credit is usually a poor match for a large asset: it leaves the limit tied up for years and was built for short, recurring needs.
What Coconino County businesses finance
The confirmed partner sectors are heavy equipment users. In 2023 Coconino County had 421 construction employer establishments, 355 restaurants and other eating places, 76 physicians' offices and 48 dentists' offices (U.S. Census Bureau, County Business Patterns 2023). Typical requests follow from that mix:
- Contractors: compact track loaders, excavators, trailers, work vans and pickups used on job sites, and tools for specialty trades.
- Restaurants: ranges, combination ovens, walk-in coolers and freezers, dish machines, hood systems and point-of-sale hardware.
- Medical and dental practices: exam and dental chairs, imaging equipment, sterilization units and practice-management hardware.
Each sector has its own page under financing by industry, and broader county figures are on our Flagstaff page.
What partners usually review
- the vendor quote or invoice;
- the asset's age, condition and resale market, especially for used equipment;
- business bank statements and revenue;
- time in business and existing debts;
- business and owner credit.
Silvershore Funding Group is a broker, not a lender. What happens after you call is explained step by step.
By Silvershore Funding Group · Updated