Redrun Business Funding, a small-business funding broker in Caldwell, Idaho, places equipment loans and leases with lending partners for Canyon County trades, kitchens and clinics. This page compares equipment loans, fair market value leases, $1 buyout leases and equipment finance agreements, and covers used equipment and work vehicles. Partners decide and set rates and terms.
| What it is | A loan or lease secured by the equipment |
|---|---|
| Repayment | Level payments spread over the machine's working years |
| Common assets | Skid steers, mini excavators, ovens, dental chairs |
| Decided by | The partner holding the lien |
Four ways to pay for equipment
| Structure | Whose name is on the title meanwhile | At the end | Often suits |
|---|---|---|---|
| Equipment loan | Your business, with a lien recorded by the partner | Lien released when paid | Machines the business means to run for years |
| Equipment finance agreement (EFA) | The business, with a security interest held by the partner | Yours once paid | Similar to a loan, often simpler paperwork |
| $1 buyout lease | The lessor | Buy it for a nominal sum | Owners who want to own but prefer lease paperwork |
| Fair market value (FMV) lease | The lessor | Buy at market value, renew or return | Technology that ages fast, or trial use |
Which one fits depends on whether you want to own the machine at the end, how fast it loses value, and how the payment sits in your books. Ask your accountant how each would be treated for tax before you choose; Redrun does not give tax advice.
Market-value lease against a $1 buyout lease
With a fair market value lease, the payments are usually lower because you are paying for the use of the equipment, not all of its value; at the end you can buy it at its market price, return it or renew. A $1 buyout lease runs closer to a purchase: the payments cover the full cost, and at the end you buy the equipment for a nominal amount.
If you will run a skid steer until it wears out, an FMV lease can end up costing more in total once you buy it out. If an imaging unit will be outdated in a few years, returning it can make sense.
Used equipment
Many partners finance used machines, though they look harder at age, hours, condition and resale value, and may set a shorter term. A dealer's invoice, serial number and an inspection or appraisal help. Private-party sales can be financed by some partners, usually with extra checks on title and liens.
Work vehicles for contractors
Service trucks, pickup trucks with racks and utility trailers for a trade business can be financed as business equipment. Redrun does not arrange funding for trucking or freight-hauling businesses; this is about vehicles that carry a crew and its tools to a job.
Machines and fixtures Canyon County, ID sectors buy
Construction is Canyon County's largest sector by employer count: 1,678 establishments in 2023, 1,303 of them specialty trade contractors (County Business Patterns 2023). Those firms run compact excavators, skid steers, compressors and trailers. The same source counted 350 food service and drinking places and 365 ambulatory health care establishments, which buy ranges, walk-in coolers, dental chairs and imaging units. The sector overview covers each sector's funding pattern, and the Caldwell, ID page has the wider county figures.
Pricing a machine before you call
Redrun's heavy equipment payment calculator estimates the monthly payment and the total cost including your down payment from a price, a down payment, a rate and a term that you enter. The rate is your assumption, not an offer; a partner sets the real one.
Asset-backed deal or a general term loan
When the purchase is a single machine with a clear resale value, equipment financing usually fits, because the asset secures the deal. When the money covers installation, training and a building change as well, part of the cost may sit better in a business term loan. Vendors sometimes include soft costs such as delivery and setup in the equipment deal; ask what the partner allows.
Questions before signing an equipment deal
- Is the payment fixed for the whole term?
- What happens at the end: ownership, a buyout price, or return?
- Are delivery, setup and attachments included?
- Who insures the equipment, and what cover is required?
- Does settling the deal early cost anything extra?
Records partners usually review
- The vendor quote or invoice, with make, model, year and serial number.
- For used equipment: hours, condition notes, photos.
- Business bank statements and the latest tax return.
- Idaho entity records and the owners' identification.
- Proof of insurance on the equipment, once approved.
The request steps show who reviews what.
By Redrun Business Funding · Updated
