Deerbrook Lenders puts the quote before funding partners, who decide the terms of any offer they make.
Equipment financing ties the payment to a machine with a working life. This page compares a finance agreement with a loan on alignment equipment, prices a $1 buyout lease on two induction ranges, sets a fair market value lease beside a loan, runs pallet stackers through the calculator inputs and looks at used light towers, all with invented figures.
At a glance
- Manufacturers, Jackson County, MS
61 employer establishments (CBP 2023)
- Construction employers, Jackson County, MS
185 employer establishments (CBP 2023)
- Full-service restaurants, Jackson County, MS
92 employer establishments (CBP 2023)
Two contracts, one alignment package: an equipment finance agreement next to an equipment loan at a Jackson County, MS millwright shop
Whichever of the two the shop signs, an equipment finance agreement (EFA) or an equipment loan, the alignment equipment belongs to it after the final payment. Under a loan, the lender advances money and takes a lien on the equipment. Under an EFA, the finance company pays the seller and the business makes fixed payments under a contract built around that one machine. Down payment, rate and paperwork can differ between them.
| Structure | Paid at signing | Monthly payment | Total of payments | Total cost with anything paid at signing |
|---|---|---|---|---|
| EFA at 11.95% | $0 | $766.70 | $27,601.20 | $27,601.20 |
| Loan at 10.65%, 10% down | $2,310 | $677.20 | $24,379.20 | $26,689.20 |
In this invented pairing the EFA keeps $2,310 in the shop at signing, and the loan costs $912.00 less in total. The choice turns on whether that cash is worth more in the business today.
Alignment work follows plant machinery, and County Business Patterns tallied 61 manufacturing establishments in Jackson County, MS for 2023, with 31.1% of them under five employees.
A $1 buyout lease on two induction ranges for a Pascagoula, MS quick-service restaurant
A $1 buyout lease runs like a rental for its term, then lets the business buy the equipment for one dollar at the end. In the invented case below, the payments cover the price plus a finance charge, so the buyout adds only $1 to the total.
In an invented case, a quick-service restaurant leases two induction ranges at $8,370 each, $16,740 in all, for 36 months. At invented payments of $559.00, the 36 payments come to $20,124.00, and with the $1 buyout the invented lease total is $20,125.00.
The ranges themselves are the equipment. Their dedicated electrical circuits, and any hood over the cooking line, are property work outside this site.
Counter-service kitchens are numerous in the county: 99 limited-service restaurants were counted in Jackson County, MS in 2023 (CBP, NAICS 722513).
What a fair market value lease leaves open at the end: a Jackson County, MS physician office's ultrasound unit
A fair market value (FMV) lease keeps payments lower by leaving part of the machine's value unpaid. At the end of the term, the business can return the equipment, renew the lease or buy it at its fair market value at that time, which nobody can state in advance.
In an invented case, a physician office leases a $52,600 portable ultrasound unit for 48 months, priced with 15% of the value left at the end. At a 10.45% annual rate the invented lease payment is $1,212.36, against $1,345.47 for a 48-month loan on the full price at the same invented rate.
The invented lease is $133.11 a month lower, but the office owns nothing after the last payment unless it pays the end-of-term price on top.
How equipment financing works for a Jackson County, MS wholesaler's pallet stackers, input by input
An equipment loan follows a short path, and the calculator on this page takes the same four inputs a partner's offer turns on:
- Get a written quote for the machine, with any delivery and setup on it.
- Call Deerbrook Lenders or send the request form; a funding partner reviews the business and the equipment.
- Any offer names the amount financed, the annual rate, the term in months and any down payment or fees.
- Payments start after signing, and the lien comes off once the last one is made.
Invented figures for two electric pallet stackers: price $34,600, down payment $5,190 (15%), so $29,410 is financed at a 9.85% annual rate over 60 months. Worked by hand, that invented loan is $622.71 a month with $7,952.60 of interest. Entering the same values in the calculator on this page shows how changing the down payment or the term moves the payment.
Lease, then return, renew or buy: equipment leases for a Pascagoula, MS accounting office's laptops and phones
An equipment lease is a contract to use a machine for a fixed term at a fixed payment. The leasing company owns it during the term, and the business decides at the end what happens next under the options the lease spells out.
- The term is set at signing and can be matched to how long the equipment stays useful.
- Payments are fixed for the term; some leases bundle service, others leave upkeep to the business.
- Insurance on the equipment may be required for the whole term.
- End-of-term choices depend on the lease type: a $1 buyout, a fair market value purchase, a renewal or a return.
Office equipment that is replaced on a cycle, such as laptops and phones, can suit a lease. Accounting, tax preparation, bookkeeping, and payroll services offices numbered 41 in Jackson County, MS in 2023, according to County Business Patterns (NAICS 5412).
Used equipment financing for a Jackson County, MS steel erector's light towers and towable generator
Secondhand machines can sell well under new prices, and some funding partners may still finance one. A partner may ask for the machine's age, hours, serial number and an inspection or appraisal, and may set a shorter term for an older unit.
In an invented case, a steel erection contractor finances three used towable light towers at $9,450 each and a used towable generator at $18,350, $46,700 in all, over 48 months at an 11.7% annual rate: $1,222.92 a month in this invented example, with $12,000.16 of interest across the term.
Contractors are a large group here: Jackson County, MS had 185 construction establishments with paid employees in 2023 (CBP, NAICS 23), 54.6% of them with fewer than five employees. Separately, Nonemployer Statistics listed 1,811 construction businesses with no paid employees in the county in 2024.
Five blog articles apply these forms to single trades: welders and a used plate roll for fabrication shops, robotic mowers for landscapers, a soft tissue laser and endodontic devices for dentists, practice loan terms for a clinic and which assets a business can pledge.
By Deerbrook Lenders · Updated
