Equipment Lines of Credit
An equipment line of credit is a pre-approved loan commitment amount that provides a business owner the ability to draw funds for equipment purchases over the course of a given period, typically one year. If your business is one that purchases or replaces equipment on a regular basis throughout the year, then an equipment line of credit would be beneficial to your capex program. Benefits include reducing the administrative burden by only having one equipment loan versus multiple loans and having the ability to access funds quickly for unexpected purchases. In addition, only the amount funded on the line of credit is accounted for as a direct liability on your company’s financial statements, as the unfunded amount is considered a credit pre-approval.
Sale Lease Back Program
Our equipment lease sale back program allows the borrower to sell equipment that is immediately leased back to them. Engaging in a lease sale back transaction provides the borrower with cash-out equity that they can use to fund other business expenses. These transactions help mitigate obsolescence risk while allowing the borrower to continue using the equipment without interruption.
- Equipment lines of credit can include a variety of asset types and finance structures
- Reduce administrative burden and proactively plan for future equipment needs
- Minimize the paperwork requirement associated with having multiple equipment loans
- Sale lease back options provide cash-out equity that can be used for other business expenses