Equipment financing funds machines, vehicles and systems a business needs, with the equipment usually securing the balance. Orchardmark Financial, a small-business funding broker in Scranton, Pennsylvania, explains loans, leases and equipment finance agreements to Lackawanna County contractors, restaurants and practices and sends requests to lending partners, which decide and set every rate and term.
| Built for | Machines, work vans, clinical and kitchen equipment |
|---|---|
| Structures | Loans, leases, equipment finance agreements |
| Secured by | The equipment itself |
| Lackawanna County context | 304 specialty trade contractors and 83 dental offices with employees (CBP 2023) |
| Who decides | The lending partner |
How equipment financing works
The partner pays the seller, and the business makes regular payments over a term that usually tracks the equipment's working life. Because the asset secures the deal, partners look closely at what it is, whether it is new or used, and how readily it could be resold. A dental imaging unit, a commercial dishwasher and a compact track loader carry different resale markets, and that affects the structure a partner will offer.
Equipment loan, lease or EFA: who owns the machine?
| Structure | Who owns the equipment | When the term ends |
|---|---|---|
| Equipment loan | The business, from day one; the partner holds a lien | Lien released once the balance is paid |
| Lease | The lessor, during the term | Return it, renew, or buy it at the price the lease sets |
| Equipment finance agreement (EFA) | The business, with the funder secured by the equipment | Paid off and owned outright |
Which one suits depends on how long you will keep the item and how fast it becomes outdated. Technology that is replaced every few years often suits a lease; a machine you will run until it wears out usually suits a loan or EFA. How each choice is treated for tax purposes is a question for your accountant.
A business loan to buy equipment, or an equipment loan?
A general business term loan can buy equipment, but it may need other collateral or a broader lien, because the partner is not relying on the machine alone. A dedicated equipment loan is secured by the item, which often keeps the paperwork narrower. A line of credit is rarely the right tool for a large machine: the balance would sit on a revolving facility meant for short-term costs.
How to finance construction equipment
Contractors usually finance excavators, loaders, trailers, lifts and work vans one unit at a time. Partners want the dealer quote or the private-sale details, the serial number for used units, and evidence of the work the machine will be used on, such as a contract or a backlog list. Vans and pickups used for a trade qualify as equipment; we do not take requests for trucking or freight hauling.
In Lackawanna County, 304 of the 457 construction employer establishments in 2023 were specialty trade contractors such as electricians, plumbers and roofers (U.S. Census Bureau, County Business Patterns 2023). For firms that size, financing each unit separately keeps a slow month from putting the whole fleet at risk.
Medical and dental equipment financing
Clinical equipment is specialized and can lose resale value quickly, so partners weigh the practice's track record as heavily as the item itself. Lackawanna County had 197 physician offices and 83 dental offices with employees in 2023 (U.S. Census Bureau, County Business Patterns 2023). A practice pricing an operatory chair, intraoral scanner or imaging unit can work out the monthly payment and total cost first with the dental equipment payment calculator.
Kitchens and storefronts
Restaurants finance ranges, combi ovens, walk-in coolers, dish machines and point-of-sale systems; retailers finance shelving, coolers and checkout systems. Lackawanna County had 440 restaurants and other eating places with employees in 2023 (U.S. Census Bureau, County Business Patterns 2023). For the full picture of each sector, see the sectors our partners fund, and for local context, the county numbers and local help.
Used equipment
Partners will often finance used equipment, but expect shorter terms and closer questions: the age, hours or mileage, the seller, an inspection or appraisal, and a bill of sale. Private sales need a clear title and a check for existing liens on the item.
Before you sign
- Confirm who owns the equipment during and after the term.
- Ask for every payment plus any buyout, totaled in dollars.
- Ask about a down payment and any fees at signing.
- Check insurance requirements and who must be named on the policy.
- Read what happens if the equipment is damaged or you close early.
The process from start to finish explains where we fit.
By Orchardmark Financial · Updated
