Equipment Leasing and Financing Association (ELFA) is a member-based trade organization founded in 1961 in Washington, DC. It represents more than 550 financial services companies and manufacturers that provide financing for any size company for the purpose of purchasing equipment. Member companies through ELFA offer up to $1 million in financing based on the borrower’s income statements and credit history. Borrowers must also have a minimum 500 credit score and be in business for at least a year in order to qualify for equipment financing. The nonprofit organization does not disclose details regarding rates, fees, and terms. There is no consumer feedback regarding the association online.
Only members through the organization can apply for equipment financing. Business owners must be in operation for at least a year and have a minimum credit score of 500. Business and personal collateral are necessary for approval. Annual business income requirements vary from lender to lender, as well as interest rates terms, and other fees.
Loans can be obtained from lenders for the purpose of purchasing business equipment.
- 1 Year in Business
- Minimum 500 Credit Score
- Personal/Business Collateral
With ELFA, small business can receive discounts on certain financial services and quickly obtain large loan amounts to help launch a new product or service. The following items are available to all ELFA borrowers:
Pros of ELFA Small Business Loans
- Up to $1 Million Loan Amount
- Discounts on Banking Services
- Business Development Resources
- Short and Long Term Loan Options
- Loans Available For All Credit Types
Members are able to deal directly with manufacturers and other lenders to negotiate and acquire equipment financing for their small businesses. Numerous loan options are available from these lenders ranging from $5,000 to $5 million. Small business owners are also able to gain numerous other resources for business growth plus tax incentives and discounts on banking and other services.
The organization features numerous educational resources to its members on lease financing, accounting, and legal matters. The company also works as an advocate for industry businesses in the United States on the state and federal levels and delivers the latest industry market research and statistics to its members. The company also helps members network with equipment financing members to help develop long-term business relationships.
Despite having the ability to help small businesses get the loan they need to get projects off the ground, there are some concerns that need to be addressed as well. These limitations include the following items:
Lack of Transparency
The company does not disclose any details regarding the funding process of the lenders it works with. Loan approval times vary from lender to lender. No details are offered regarding interest rates or other fees involved in obtaining a business loan. Members only have access to equipment funding and nothing else.
Only for Members
Unless a small business owner is a member of the organization, that individual cannot apply for a small business loan from ELFA. Annual membership fees approximately range from $3,000 to $72,000, depending on the size and type of business. These fees may be too expensive for some small businesses and these business owners may choose to opt for alternative options from online competitors offering easier access to lending.
Frequently Asked Questions
How long will it take to receive funds from ELFA?
The funding process varies from lender to lender and details are not publicly disclosed on the corporate website.
Does ELFA require collateral with its loans?
The company may require some form of business or personal collateral in order to receive a loan.
Does ELFA have prepayment penalties?
The company does not disclose prepayment penalties.
Does ELFA charge origination fees?
The company does not disclose origination fees.
Does ELFA charge closing fees?
Kabbage does not disclose closing fees.
How can I contact ELFA?
Consumers may contact the company by phone at 1-202-238-3400.
Types of Loans Offered
Equipment Leasing and Financing up to $1 million
Rates vary depending on the lender. This information is not publicly disclosed on the corporate website.
Term lengths vary depending on the lender. This information is not publicly disclosed on the corporate website.
How to Apply
Small business owners must first complete a membership application with the Equipment Leasing and Financing Association and submit the appropriate membership dues. Full details on membership dues and the application process can be found directly on the association’s website. Once membership is approved, business owners are given access to a full member directory that list companies offering equipment financing. Business owners can connect with these companies and negotiate terms and fees.
Business loan application requirements, fees, rates, and terms will vary with each lender. Typically, business owners with at least one year in business, consistent income, and a minimum 500 credit score are eligible to receive equipment financing. Business owners will also be expected to provide either business or personal collateral and submit certain documentation about their business to the potential lender. This documentation includes a business plan, cash flow projections, balance sheet, and payroll accounting information. A business bank account is also necessary for transferring funds.