Loans and finance agreements are two different terms for borrowing money. The main difference lies in the way interest is calculated and paid. With a loan, your purchase is amortized over a set term, so if you happen to pay it off early, you will save on interest payments. However, with an equipment financing agreement, since the fee for the financing is not amortized, you’re on the hook for the entire financing fee, whether you pay it off early or use the whole term to pay it off.