An EFA, or Equipment Finance Agreement, is similar to a loan, as it creates ownership of the equipment, where it shows up on the business’ balance sheet as an asset. However, EFAs have finance charges versus an interest rate, making it more like a lease. The finance charges are rolled into fixed payments made on a regular basis that last for the life of the financing term. During repayment, an EFA works more like a lease agreement than a loan. EFAs are popular for their versatility and benefits, such as preserving cash flow, the ability to finance 100% of the equipment cost, and helping keep critical equipment up to date. They are known for their speed, flexibility and convenience. At Trinity Capital, we can tailor the terms of your EFA to your business’ unique needs and get you financing quickly – typically we can do same-day approvals.