What Is an Equipment Finance Agreement (EFA)?
An equipment finance agreement (EFA) combines a loan, security agreement, and promissory note into a single document. EFAs also have some distinguishing characteristics that make them one of the most popular and versatile equipment financing options. In this article, we’ll go over equipment financing agreements in detail, including how they work, how they differ from equipment leasing, their benefits, and how to get one. A Little Bit of Loan, a Little Bit of Lease From the perspective of the financing applicant, an EFA and a simple interest loan are easily confused. However, EFAs have some unique provisions that make them...