# Equipment Financing Acronyms Reference Canonical URL: https://fundmyequipment.com/learn/glossary-acronyms/ Last modified: 2026-05-29T19:39:17+00:00 Type: efin_guide ## Summary Equipment Financing Acronyms Reference. Comprehensive guide. ## Content Equipment finance has its own dialect. Here is a reference list of common acronyms, organized for quick lookup. For full definitions of each term, see the linked glossary entry. Loan and lease structures EFA - Equipment Finance Agreement Hybrid lease-loan; treated as a purchase for tax and accounting. See EFA. FMV - Fair Market Value (lease) Operating lease with market-value buyout at end. See FMV lease. TRAC - Terminal Rental Adjustment Clause Trucking-specific lease where lessee bears residual risk. See TRAC lease. SLB - Sale-Leaseback You sell equipment you own to a lessor, then lease it back to keep using. PPP - Purchase Power Program Pre-approved credit facility for repeat equipment purchases. MLA - Master Lease Agreement Umbrella contract under which multiple equipment schedules can be added. See master lease agreements. Tax and accounting ยง179 - Section 179 deduction Allows first-year expensing of qualifying equipment purchases. See Section 179. MACRS - Modified Accelerated Cost Recovery System IRS depreciation system used for business equipment. See MACRS. ASC 842 - Accounting Standards Codification 842 Lease accounting standard that put leases on the balance sheet. See ASC 842 explained. EBITDA - Earnings Before Interest, Taxes, Depreciation, and Amortization Operating profit metric lenders use to evaluate cash flow. DSCR - Debt Service Coverage Ratio Operating cash flow divided by debt payments. Lenders typically want 1.20 to 1.35. See DSCR. Credit and underwriting APR - Annual Percentage Rate The interest rate expressed as an annual percentage. See APR. LTV - Loan-to-Value Loan amount as a percentage of equipment value. FICO - Fair Isaac Corporation credit score Personal credit score most lenders use. D&B - Dun & Bradstreet (business credit) Business credit rating used by some equipment lenders. PG - Personal Guarantee Owner's personal liability for business loan. PMSI - Purchase Money Security Interest Priority rule allowing a new lender to take first position on specific equipment despite existing blanket liens. Lien and security UCC - Uniform Commercial Code The legal framework governing secured transactions. UCC-1 is the financing statement filing. UCC-1 - Initial financing statement The lender's lien filing on the equipment. UCC-3 - Amendment / termination statement Used to terminate, continue, or amend a UCC-1. SOS - Secretary of State The state office where UCC filings are recorded. Industry bodies ELFA - Equipment Leasing and Finance Association Major industry trade association. NEFA - National Equipment Finance Association Trade association for smaller and mid-tier equipment finance companies. AACFB - American Association of Commercial Finance Brokers Trade group for commercial finance brokers. CFPB - Consumer Financial Protection Bureau Federal agency overseeing consumer financial products. Has limited but increasing reach into small-business lending. FMCSA - Federal Motor Carrier Safety Administration Federal regulator of commercial trucking; relevant for truck lease-purchase programs. USDA - U.S. Department of Agriculture Loan-guarantee programs for rural and agricultural equipment. SBA - Small Business Administration Federal agency providing loan guarantees including for equipment purchases. Equipment categories and use OEM - Original Equipment Manufacturer The brand that built the equipment (Caterpillar, John Deere, etc.). EOL - End of Life / End of Lease Equipment that has reached or is approaching the end of its useful life or lease term. VIN - Vehicle Identification Number Unique identifier on titled vehicles. SN - Serial Number Unique identifier on non-vehicle equipment. CDL - Commercial Driver's License Required to operate trucks above certain weight classes. DEF - Diesel Exhaust Fluid Emissions-system fluid for diesel engines. Application and process TCPA - Telephone Consumer Protection Act Federal law requiring consent for marketing phone calls and texts. NSF - Non-Sufficient Funds Bank notation for bounced checks; visible on bank statements during underwriting. ACH - Automated Clearing House Electronic bank-to-bank payment system used for loan payments. LOI - Letter of Intent Preliminary written agreement before formal contract signing. For longer-form definitions of any term above, search the full glossary.