A loan, an equipment finance agreement and two kinds of lease are the routes this page prices. The examples compare the payments and totals for each, using invented figures computed from the printed inputs.
At a glance
- What it pays for
Machines, fixtures and hardware the business keeps and uses
- Forms it can take
Loan, equipment finance agreement, $1 buyout or fair market value lease
- What is outside it
The building, its systems and any property purchase
Keycard lock sets and luggage carts for a Sevierville, TN motel front desk on a 48-month loan
At a motel front desk, keycard lock sets for the room doors, luggage carts, a luggage scale and the booking computer are movable items a request can name. Renovation of rooms or bathrooms, flooring, HVAC or PTAC units, and any purchase of the property are building work outside this site.
Illustration only, invented figures: a motel replaces its room locks with keycard sets and adds four luggage carts, a $23,900 package financed at 10.95% over 48 months. The motel pays $617.13 a month; by the 48th payment it has paid $29,622.24, of which $5,722.24 is interest.
Motels are one slice of a large lodging trade here: 204 traveler accommodation establishments (NAICS 7211, which takes in hotels and motels) had a Sevier County, TN location in 2023, according to County Business Patterns.
Used heavy equipment financing for a Sevier County, TN fence contractor pricing a used post driver
A fence contractor in Sevier County, TN that rents a hydraulic post driver for each long fence job may reach the point where owning a used one costs less than the rental bills. A used machine goes through the same request steps as a new one, though a partner may look at the machine's age, hours and condition, and may ask for an inspection report or a larger down payment.
Illustration only, invented figures: the contractor finds a used post driver with an auger attachment for $23,400, puts $2,340 down and finances $21,060 at 10.25% over 60 months. Sixty checks of $450.06 come to $27,003.60; add the cash put down and the used post driver costs the contractor $29,343.60. Price, cash down, rate and months: the contractor can type that same set into the calculator on this page.
Fence contractors are counted in construction, a sector with 265 employer establishments in Sevier County, TN in 2023, 62.3% of them with fewer than five employees (County Business Patterns, NAICS 23).
Equipment finance agreement vs a loan: refrigerated display cases at a Sevierville, TN bakery
A bakery in Sevierville, TN wants two refrigerated display cases for its front counter. It can finance them with an equipment loan or with an equipment finance agreement (EFA). At the same rate and term, the payment is the same; the paperwork is what differs.
| Point | Equipment loan | Equipment finance agreement |
|---|---|---|
| Document | A loan agreement and promissory note | One agreement covering the equipment and payments |
| Ownership | The bakery owns the cases; the lender holds a lien | The bakery owns the cases from the start |
| At the end | Lien released after the last payment | Nothing left to buy after the last payment |
Whichever form the bakery signs, it hands over $15,044.04 across 36 months, $2,344.04 above the price of the cases. A partner decides which form it offers, and the offer states the terms.
How does a $1 buyout lease work? An embroidery machine at a Sevierville, TN T-shirt shop
A $1 buyout lease has the business lease a machine for a set term and then buy it for one dollar at the end. In practice it works like a purchase paid in installments, and its total can be set against a loan on the same machine.
| Option | Monthly payment | Total, buyout included |
|---|---|---|
| $1 buyout lease, 36 months | $629.50 | $22,663.00 |
| Equipment loan, 11.7%, 36 months | $625.05 | $22,501.80 |
Over three years the embroidery machine costs the T-shirt shop $161.20 more on the lease than on the loan. A lease can still suit a shop whose partner offers it with less paperwork, so both totals belong side by side before choosing.
What is a fair market value lease? A copier and plan printer at a Sevier County, TN real estate office
Under a fair market value (FMV) lease, the monthly figure stays modest since the business pays for the use of the machines, not their full price. When the term runs out, three doors open: hand the machines back, sign on for another term, or pay what they are worth on that date.
Illustration only, invented figures: a real estate office in Sevier County, TN leases a copier and a large-format plan printer worth $14,200 for 36 months at $395.00 a month.
| End-of-term choice | What happens | Total paid |
|---|---|---|
| Return | The office hands back both machines | $14,220.00 |
| Renew | A new payment is set for another term | $14,220.00 plus the new payments |
| Buy at fair market value | An invented value of $1,900 at the end | $16,120.00 |
Office machines that the office expects to replace with newer models fit this kind of lease. It is one of 65 offices of real estate agents and brokers in the county in 2023 (County Business Patterns, NAICS 5312).
How does equipment financing work, quote to final payment, for a Sevier County, TN plumbing contractor?
A plumbing contractor in Sevier County, TN wants a sewer inspection camera and a trailer-mounted jetter. The steps run from the dealer quote to the final payment:
- Get a written quote that names the make, model, price, delivery and any training.
- Call (865) 326-1090 or send the request form; the quote and the timing are talked through on the call.
- The contractor's request then reaches funding partners through Boldwick; each may weigh time in business, bank statements and credit.
- Compare any offer on payment, total cost and what happens at the end of the term.
- Once the papers are signed, the partner settles the dealer's invoice and the first payment date is set.
Illustration only, invented figures: for the $29,800 camera-and-jetter package at 10.8%, the contractor writes 48 checks of $767.31, or $36,830.88, and $7,030.88 of that is the price of the money. The contractor is one of 41 plumbing, heating and air-conditioning contractors that had a Sevier County, TN location in 2023 (County Business Patterns, NAICS 238220).
Blog articles work through three more equipment cases: a motel's floor care and vending machines, a restaurant's buffet line with its dish machine, and a food truck set against a towed trailer.
By Boldwick Funding Group ยท Updated
