Equipment financing is business funding for a specific asset, such as construction machinery, a commercial kitchen line or clinical equipment, usually secured by that asset and offered as a loan, lease or equipment finance agreement. Keelpark Capital Group, a small-business funding broker in Jackson, Tennessee, helps Madison County businesses compare structures and connects them with lending partners, which decide and set terms.
| Built for | A specific asset: machinery, vehicles, kitchens, clinical systems |
|---|---|
| Structures | Equipment loan, lease, or equipment finance agreement (EFA) |
| Collateral | Usually the equipment itself |
| Partners usually review | The quote, the asset's age and use, cash flow and credit |
| Who decides | The lending partner, not Keelpark Capital Group |
| Address | 109 N Church St, Jackson, TN 38301 · (731) 252-4018 |
How does equipment financing work?
You choose the equipment and get a quote. The partner reviews the quote and the business, and if it approves, it pays the vendor directly or buys the asset and leases it to you. You then make scheduled payments, and the partner holds a security interest in the equipment, or ownership in the case of a true lease, until the obligation ends.
Because the asset backs the deal, partners pay attention to what it is: how long it lasts, how easily it could be resold, and whether it is new or used.
Loan, lease or EFA
| Structure | Who owns it during the term | At the end | Often chosen when |
|---|---|---|---|
| Equipment loan | You, with the partner's lien | Lien released after the last payment | You want to own an asset with a long working life |
| Lease | The lessor | Return, renew or buy, as the lease allows | Equipment that dates quickly, or you prefer flexibility |
| Equipment finance agreement (EFA) | You, with a security interest | Ownership is clear after the last payment | You want loan-like ownership with simpler paperwork |
End-of-lease options deserve a careful read. A buyout fixed in the contract and one set at fair market value at the end can produce very different totals. Tax treatment also differs between structures; ask your accountant, not us or the partner, how each would be treated for your business.
New, used, and the extras on the invoice
Used equipment can often be financed, though partners may want an appraisal or inspection and may set a shorter term for older machines. Delivery, installation, training and software are sometimes included in the financed amount and sometimes not, so ask before you sign the purchase order.
What Madison County businesses finance
The county's equipment needs follow its business mix. Madison County had 197 construction employer establishments in 2023, 127 of them specialty trade contractors such as electricians, plumbers and HVAC firms (U.S. Census Bureau, County Business Patterns 2023): excavators, skid steers, trailers and service vans are typical requests. It had 206 restaurant and other eating-place establishments (same source), where walk-in coolers, ranges, hoods and point-of-sale systems come up. And it had 249 ambulatory health care establishments, including 80 physician and 38 dentist offices (same source), where imaging, dental chairs and diagnostic systems are typical purchases.
How do you finance construction equipment? Start with the quote and the jobs it will work on; partners want to see that the machine will earn its payment. Medical equipment financing works the same way, with the added question of how the equipment is reimbursed. Contractor financing and practice financing go deeper.
Equipment financing or a term loan?
A business loan to buy equipment can be a general term loan instead of an equipment-specific one. Equipment financing usually ties the debt to the asset, which can mean less other collateral. A term loan can cover several purchases, installation and working capital together. If you are buying a single asset, compare both.
Newer businesses face a narrower field of partners for equipment, and a larger down payment or shorter term may be asked for. Owners just starting out can find free help through the Tennessee SBDC office in Jackson, TN.
What partners look at
- The vendor quote, with model, year and condition
- Recent bank statements and time in business
- Business and personal credit
- Existing equipment debt and any blanket liens; check Tennessee UCC filings first
- How the equipment will produce revenue or cut costs
Keelpark Capital Group helps assemble that file and takes it to partners that finance the type of asset you are buying.
By Keelpark Capital Group · Updated