Equipment financing is for companies that either need to purchase machinery and equipment or would like to utilize unencumbered equipment as collateral for financing. While companies with asset-based funding can sometimes add machinery and equipment to their borrowing base, equipment loans and leases can stand on their own. Common equipment financing options are loans, leases or sale leasebacks.
Loans are a good option for established companies that have good working capital and intend on using the machinery and equipment for the foreseeable future. Loans terms are typically up to 7 years and can be used for new and used equipment. Finance companies will often finance 100% of the purchase price of the equipment. Some lenders will limit the amount of financing on used equipment.
Equipment leasing is good for companies that have limited working capital and only a temporary need for the equipment. Lease terms are usually between 12-60 months and the borrower has the option to buy the equipment at the end of the lease. With equipment leasing the lessor is responsible for maintaining and repairing the equipment.
The sales leaseback option is for companies that have equity in their equipment and want to generate working capital using the equipment as collateral. The financing company purchases the equipment from the company and then leases it back. The company has the option to buy the equipment at the end of the lease.
Equipment financing is available at bank rates for companies with good credit. Companies with less than perfect credit can work with a private financing company, however, at higher rates. Equipment financing options are available to companies with funding needs as little $10,000.
Equipment financing is a great option for companies that are buying new or used equipment and have stand alone funding needs. Great rates are available to qualified buyers.
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Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies