Equipment Term Loans — Ownership and Depreciation
Equipment term loans transfer ownership immediately at funding. The borrower owns the asset, takes depreciation deductions, and pays off the loan over 36 to 84 months depending on useful life. Ownership suits businesses that intend to keep equipment beyond the financing term, want asset appreciation (unusual but present for specialty industrial equipment), and prefer a single tax treatment pattern. First-lien UCC-1 filings specific to the equipment secure the loan alongside general UCC coverage under related business loans. Personal guarantees from 20%+ owners apply in most cases.
Fixed-rate equipment loans lock monthly payment amounts for the life of the loan, valuable when interest rate expectations favor protection. Floating-rate structures tied to SOFR allow interest rate swaps for borrowers seeking synthetic fixed-rate treatment with flexibility. Small-ticket equipment under $250,000 on new equipment often uses streamlined credit scoring and funds in 7 to 10 days.
Commercial Lending


