Silverport Capital in Wenatchee, Washington helps Chelan County, WA hotels, restaurants, contractors, landscapers and auto shops compare equipment financing: loans secured by the equipment and leases with a $1 or fair market value buyout. This page covers five equipment types, both lease forms and the records partners read; partners decide.
Loan or Lease: Two Ways to Pay for a Machine
An equipment loan makes the business the owner from the start, with the partner holding a lien until the last payment. A lease leaves the lessor as owner while the business pays to use the equipment, with an option to buy it, return it or renew at the end. Both spread the cost over time, and in both the equipment itself does much of the work of securing the deal.
The comparison that matters is the total: every payment, every fee, and the buyout if there is one. The lease vs buy article runs both on the same machine.
Hotel FF&E financing in Wenatchee, WA: beds, case goods and laundry
Chelan County, WA had 75 traveler accommodation employers in 2023, the Census group that includes hotels and motels (County Business Patterns, 2023 data, U.S. Census Bureau). Furniture, fixtures and equipment, called FF&E in the trade, is the furnishing of a hotel that is not the building: beds and mattresses, case goods such as dressers and nightstands, seating, televisions, lighting, and back-of-house equipment like commercial washers and dryers.
- Mattresses and box springs, replaced on their own cycle.
- Case goods and seating, which can be bought as a package with installation.
- Commercial laundry: washer-extractors, dryers and folding tables.
- Room televisions and in-room technology.
Brand-mandated upgrades under a property improvement plan can be financed the same way. The hotel loans page covers PIPs.
Restaurant equipment financing in Wenatchee, WA: remodels, POS systems and delivery vans
Full-service restaurants in Chelan County, WA counted 113 employers in 2023 and limited-service restaurants 60 (County Business Patterns, 2023 data, U.S. Census Bureau). Restaurant equipment financing covers the hard goods: hood and fire-suppression systems, ranges, combi ovens, fryers, walk-in coolers, dish machines, POS terminals and handhelds, and a delivery van.
A remodel mixes equipment with work that is not equipment, such as plumbing, electrical and finishes. Equipment financing covers the equipment; the rest may need a term loan. Ask the supplier to split the quote so each part can be financed the right way.
Construction equipment financing for Chelan County, WA contractors: excavators, compactors and trailers
Construction had 459 employer establishments in Chelan County, WA in 2023, including 161 residential building contractors and 61 other specialty trade contractors, the group that covers site preparation (County Business Patterns, 2023 data, U.S. Census Bureau). Their equipment runs from mini excavators and compact track loaders to plate compactors, dump trailers and work trucks.
Used equipment can be financed as well as new; partners read the age, hours and condition. The contractor financing page covers draws and retainage alongside equipment.
Landscaping equipment financing for Chelan County, WA landscapers: crew trucks, aerators and irrigation gear
Landscaping services counted 68 employers in Chelan County, WA in 2023, 80.9% of them with fewer than five employees (County Business Patterns, 2023 data, U.S. Census Bureau). A landscaper's list: zero-turn and stand-on mowers, a crew truck and trailer, aerators, dethatchers, trenchers and irrigation tools.
Illustration only, invented figures: an $18,500 stand-on mower over 48 months at an assumed 11.5% annual rate comes to about $483 a month (our arithmetic). The landscaping page goes further.
Auto repair equipment financing for Chelan County, WA auto repair shops: lifts, scan tools and alignment racks
Auto repair and maintenance counted 53 employers in Chelan County, WA in 2023 with 236 paid employees (County Business Patterns, 2023 data, U.S. Census Bureau). A shop's equipment list: two-post and four-post lifts, scan tools and diagnostic software, alignment racks, tire changers and balancers, air compressors, and, for collision shops, frame machines and paint booths.
A paint booth involves installation and permits as well as the booth itself; ask whether the partner finances installation. The auto repair page covers shop purchases.
How a $1 buyout lease works for a Wenatchee, WA hotel's laundry line
A $1 buyout lease is close to a purchase in all but name: the business makes fixed payments over the term and then buys the equipment for a dollar. For a hotel's laundry line, which it plans to run until it wears out, the $1 buyout is the lease form that ends in ownership.
Illustration only, invented figures: a laundry package on a $1 buyout lease at $610 a month for 48 months costs $29,281 including the buyout (our arithmetic). A $26,000 loan for the same package over 48 months at an assumed 10.5% annual rate comes to about $666 a month and $31,953 in total (our arithmetic). Set the two totals side by side, fees included, before signing either.
A fair market value lease for Chelan County, WA motels replacing guest room TVs
Under a fair market value (FMV) lease, the business decides at the end whether to hand the equipment back, extend, or buy it at whatever it is worth by then. The monthly payment is lower than under a $1 buyout because the lessor expects the equipment to keep some value. For room televisions that a motel expects to replace in a few years, returning them at the end can suit the plan.
Illustration only, invented figures: 36 payments of $390 total $14,040 (our arithmetic). If the motel buys the sets at the end at an assumed $4,200 market value, the invented total becomes $18,240 (our arithmetic). Compare both totals with a loan before choosing.
How equipment financing works for a Wenatchee, WA cafe's espresso machine
Snack and nonalcoholic beverage bars, the Census group that holds coffee bars, counted 51 employers in Chelan County, WA in 2023 (County Business Patterns, 2023 data, U.S. Census Bureau). A cafe financing an espresso machine follows the same steps as any equipment request:
- Get a written quote with the model, installation and any water filtration.
- Choose loan or lease, and for a lease, which buyout.
- Send Silverport the quote and a few months of the cafe's bank statements.
- A partner reads the cafe's deposits and the equipment, and decides.
The cafe loans page covers grinders, refrigeration and a second location.
Worked through at length on silverportcapital.com: financing hotel room renovations and FF&E.
Worked through at length on silverportcapital.com: adding a food truck to a restaurant.
For a longer silverportcapital.com read: auto shop loans for bays, lifts and buyouts.
Elsewhere on silverportcapital.com: the six funding types side by side, Chelan County, WA business figures, all twelve industry pages and the request form.
By Silverport Capital · Updated