Buying can be a good option when you expect the equipment to have a long useful life without needing replacement or upgrade. You will gain equity in the equipment and you may also benefit from financial advantages such as depreciation and tax deductions; be sure to consult your tax adviser for more information.
Equipment loan features, terms and fees
Available for amounts of $25,000 and up (no maximum) on a wide range of equipment types and commercial vehicles greater than 2.5 tons
Borrow up to 80% of the purchase price
Competitive fixed rate that considers your overall business relationship with Bank of America
We finance a wide variety of equipment, for example:
Light-industrial equipment such as packing machines and office equipment
Heavy-industrial equipment such as conveyor belts, printing presses and stationary machinery
Commercial vehicles (typically greater than 2.5 tons) such as heavy trucks and trailers
This is by no means a comprehensive list. Request a callback to talk to us about the specific needs of your business.
A leasing arrangement that allows you to assume ownership of the equipment or vehicle at the end of the term for $1.
True tax lease
The term “true tax lease” is an Internal Revenue Service classification that helps define the tax benefits to the lessor (the owner of the equipment) and the lessee (the individual or business leasing the equipment). The lessor receives any owner-related tax benefits such as depreciation or tax credits. The lessee benefits, too, by being able to claim lease payments as an operating expense which, in turn, lowers taxable income.
A TRAC (Terminal Rental Adjustment Clause) lease is designed specifically for financing heavy-duty vehicles such as trucks, tractors and trailers. The lease allows you to buy the vehicle at the end of the lease term for a predetermined value, commonly known as the TRAC amount. If you choose not to buy the vehicle, we will sell it. If the sale price is more than the TRAC amount, we pay you the difference; if the sale price is less than the TRAC amount, you pay us the difference.
2.99% interest rate for the life of your loan on terms of 48 months up to 60 months.footnote1
Equipment and Vehicle Loan Offer Details: Minimum loan amount is $25,000 and maximum loan amount is $250,000. Applications must be submitted by March 31, 2016, and close by May 31, 2016. This offer does not apply to the refinance of existing Bank of America loans. On terms 48 months up to 60 months to correspond to the interest rate offer. You should consult with your tax advisor for your actual tax benefits.
Some applications may require further consideration and additional information may be requested. All loans are subject to credit approval and loan amounts are subject to creditworthiness. Normal credit standards apply. Bank of America may prohibit use of an account to pay off or pay down another Bank of America account. Some restrictions may apply. This offer may not be combined with any other offer. Only facilities approved within the promotional period are eligible, with no maximum on the number of loans that can qualify for any one customer under the offer.
We strive to provide you with information about products and services you might find interesting and useful. Relationship-based ads and online behavioral advertising help us do that.
Here's how it works: We gather information about your online activities, such as the searches you conduct on our Sites and the pages you visit. This information may be used to deliver advertising on our Sites and offline (for example, by phone, email and direct mail) that's customized to meet specific interests you may have.
If you prefer that we do not use this information, you may opt out of online behavioral advertising. If you opt out, though, you may still receive generic advertising. In addition, financial advisors/Client Managers may continue to use information collected online to provide product and service information in accordance with account agreements.
Also, if you opt out of online behavioral advertising, you may still see ads when you sign in to your account, for example through Online Banking or MyMerrill. These ads are based on your specific account relationships with us.