972-818-8610
17250 Knoll Trail Drive, Suite 1508, Dallas, Texas 75248 | 972-818-8610
CHoey@linkcrest.com

Equipment Refinancing

Equipment Refinancing

$1,500,000 – $15,000,000+

Companies go through various business cycles as they evolve in the marketplace while utilizing selected forms of capital for growth or a turn-around situation.

Equipment RefinancingMany established firms which have generated “equity” in their heavy equipment assets will consider refinancing options using this collateral for a new loan. Sufficient cash flow and debt service coverage should be in place to secure an approval.

Most prospects can expect approximately 70% – 80% of an Auction Value appraisal of the equipment to be financed. An Orderly Liquidation Value format can be used in some instances based on lender preference here.

Advantages of Equipment Refinancing:

  • Provides working capital
  • Helps improve cash flow via the “restructuring” of debt
  • Can help exit a current lending relationship
  • Provides money to acquire additional equipment or to help
    with business expansion
  • Secures funds for reduction of either long or short term debt
  • Provides minimal disruption to the business since the equipment pledged
    as collateral remains under ownership / control of the stockholders

Industries considered: (and many others)

  • Oil & Gas
  • Transportation
  • Machine Tools
  • Energy Services
  • Plastic
  • Manufacturing
  • Construction
  • Fabrication
  • Food processing

Linkcrest Capital takes time to listen and offer solutions regarding Equipment Refinancing requests (which can often be challenging or difficult) while making a genuine, professional effort in assisting clients and prospects throughout the United States.

Transactions

$7,830,000

For a Mid-west regional industrial parts fabrication company.

This new six year facility provided consolidation of several equipment loans while significantly reducing monthly payments.

Production Equipment

$5,000,000

For an energy services Equipment Rental company (light towers, generators and heaters) with locations throughout the United States. This loan also enabled the firm to purchase additional equipment for their fleet while opening up credit lines with major vendors.

$4,146,000

For a pipeline contractor that emerged from a Chapter XI Bankruptcy in 2009. $782,000 of working capital secured as the firm also located a new bank which provided increased credit lines.

$2,790,000

For an expanding trucking company which needed to exit a bank relationship (excessive covenants, restrictions in place) while securing $312,000 in working capital.

Firm then able to obtain a very favorable Factoring relationship.

Equipment Refinancing

$1,645,000

For a small, but growing machining operation which remained very leveraged (7.5:1.0) but had an increasing customer base, decent gross margins and capable management. Bank debt was repaid with $87,000 of working capital secured.