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.
A loan and security agreement is a financing option where the full purchase of an asset is divided up into a fixed rate, after the down payment. The business taking out the agreement immediately owns the asset, with the financial institution listed as the first lien holder on the title.
The business purchasing the commercial vehicle owns it, with the financial institution listed as the first lien holder. At the end of the agreement, the vehicle is paid in full, and that lien is released.
Yes, loan and security agreements frequently require down payments, although that is ultimately determined by the equipment type, term, and credit worthiness. At the end of a loan and security agreement, the lien is released on the equipment.