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Many banks have an equipment finance group. Often the lowest rate if you already bank there.
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Capital Library · Equipment
Equipment & attraction financing
Attractions, games, kitchens and technology are an FEC's biggest purchases after the building. Here is how to pay for them, what the tax rules allow, and the questions to ask before you sign.
Your options
Loan, lease, or something else?
OptionHow it worksGood forWatch for
Equipment loanYou own it from day one; the equipment is the collateralLong-life attractions and kitchensDown payment; rate vs. your bank
$1 buyout leaseFixed payments, then you own it for $1Equipment you plan to keep for yearsUsually treated like a purchase for taxes
Fair market value leaseLower payments; return, renew or buy at the endGames and tech that age fastEnd-of-term buyout price
Manufacturer or distributor financingFinancing arranged by the seller, sometimes with promotional ratesNew attractions and game packagesCompare the true cost to a bank quote
Revenue-share placementAn operator places and owns games; you split the revenueTesting an arcade without buyingYour share and who controls pricing
Sale-leasebackSell equipment you own to a lender and lease it backFreeing cash tied up in equipmentTotal cost over the lease
SBA 7(a) or 504Fold equipment into a larger SBA loanOpening or expansion packagesLonger approval time
Tax
Tax rules for 2026
Why the year you buy matters.
- Section 179. Deduct the full cost of qualifying equipment in the year it is placed in service, up to $2.56 million for 2026. The deduction phases out once total equipment purchases pass about $4.09 million.
- Bonus depreciation. Restored to 100% and made permanent in 2025 for qualifying property, so many businesses can write off new and used equipment in year one.
- Placed in service, not ordered. The deduction counts when the equipment is installed and ready to use, not when you sign or pay a deposit. Plan delivery before year end.
- Financed still counts. Equipment bought with a loan or a $1 buyout lease can still qualify, even though you have not paid for it yet.
General information only. Your CPA decides how these rules apply to your business.
Who finances equipment
Where operators get equipment financing.
Examples, not endorsements. FEClife receives no payment from any company named here.
Amusement distributors
Distributors that sell to FECs often arrange financing for game and attraction packages.
BetsonPrimetime AmusementsShaffer Distributing
Attraction and game makers
Manufacturers partner with lenders for promotional financing on new equipment. Ask every vendor what they offer.
Independent equipment lenders
Specialty finance companies approve quickly, including used equipment. Rates vary widely.
Compare 3 quotes
Before you sign
Questions to ask on every equipment deal.
Cost
- What is the APR, not just the monthly payment?
- Are there documentation, origination or end-of-term fees?
- Can shipping, installation and training be financed too?
- Is there a prepayment penalty?
Terms
- What happens at the end of the lease: buy, return or renew?
- Who insures the equipment and who is the loss payee?
- Who pays for maintenance and repairs?
- Is a personal guarantee required?
Timing
- When does the first payment start: delivery or installation?
- Can payments be lower in the slow season?
- Will the equipment be in service before December 31 for tax purposes?
- How long is approval and funding?
Keep exploring
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Independent information. Your decision. FEClife is not a bank, lender, broker, tax adviser, investment adviser or grant administrator. Programs, tax rules and provider offerings change; confirm current details with the program, the provider and a qualified professional before making decisions.