In This Article
What Are Equipment Finance Companies?
Equipment finance companies (EFCs) are non-bank financial institutions that specialize exclusively in equipment lending. Unlike banks that offer equipment loans as one of many products, EFCs like Amur Equipment Finance, CrossRoads Equipment Lease & Finance, Channel Partners Capital, Navitas Lease Finance, and ENGS Commercial Finance focus 100% on equipment transactions. This specialization gives them deeper expertise in equipment valuations, faster decision-making, and more flexible qualification criteria.
Key Players in Equipment Finance
Amur Equipment Finance is one of the largest independent equipment finance companies, known for competitive rates and fast processing. CrossRoads Equipment Lease & Finance specializes in transportation equipment with deep expertise in trucks and trailers. Channel Partners Capital focuses on small-ticket equipment with streamlined vendor programs. Navitas Lease Finance offers vendor-centric programs for manufacturers and dealers. ENGS Commercial Finance provides full-spectrum equipment financing with strong dealer relationships.
How EFCs Differ from Banks
Speed is the biggest differentiator — EFCs can approve and fund in 24-72 hours versus 2-6 weeks at banks. They're also more flexible on credit requirements, often approving borrowers with scores in the 550-650 range that banks would decline. EFCs understand equipment valuations deeply, which means they can sometimes lend higher percentages of equipment value. The trade-off is slightly higher rates than banks — typically 7-18% APR depending on the borrower's profile.
Vendor and Dealer Programs
Many EFCs operate through dealer and vendor programs, embedding their financing directly into the equipment purchase process. When you buy a truck from a dealer and they offer "in-house financing," it's often provided by an EFC partner. These programs can offer promotional rates, deferred payment options, and streamlined documentation. Brobas works with these same EFCs directly, which means we can often get you the same or better terms without being limited to a single dealer's partner.
Pros & Cons
Pros
- Much faster than bank financing (24-72 hours)
- More flexible credit requirements
- Deep equipment valuation expertise
- Industry-specific programs (trucking, construction, etc.)
- Stronger dealer/vendor relationships
Cons
- Higher rates than banks (typically 7-18%)
- May have prepayment penalties
- Less regulatory oversight than banks
- Some require personal guarantees
- Terms may be shorter than bank options
Key Terms to Know
Best For
- Businesses needing faster approval than banks
- Operators with credit scores 550-680
- Dealer and vendor equipment purchases
- Transportation and construction companies
Financial Institution Equipment Financing vs. Bank Equipment Financing
How do these two options compare?
EFCs offer faster approvals (24-72 hrs vs 2-6 weeks) and more flexible credit requirements (550+ vs 680+), but at higher rates (7-18% vs 5-12%). Banks build stronger relationships and offer longer terms. Choose EFCs when speed matters or credit is limited; banks when you have time and strong financials.
Read about Bank Equipment Financing