Loan & Security Agreement

A loan and security agreement allows you to own your equipment while paying a fixed rate to finance it. Trans Lease is the first lien holder on the asset, but you retain ownership throughout the agreement. Interest and depreciation are expensed by you, and upon the completion of payments the equipment is considered paid in full. A down payment is common for loans and is determined by a combination of equipment type, term, and credit worthiness.

Many businesses may be unable to amass the capital to purchase a commercial vehicle or equipment outright, but still seek to own the equipment. Loan and security agreements let the businesses retain the operating capital they need to grow, while enjoying the benefits of asset ownership.

The security agreement notes that Trans Lease has security interest in the debtor’s assets or property.

Benefits of Loan and Security Agreements

• Own your asset right away
• Expense interest and depreciation
• Equipment paid in full by the end of agreement