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Business Advantage

Equipment Financing

Is buying equipment right for you?

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
  • Flexible terms up to 5 years
  • Origination fee 0.5% of amount financed
  • Loan is secured by the equipment you're financing

Equipment types

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.

Lease purchase

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.

TRAC lease

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.

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