Equipment Financing
$20,000 – $30,000,000+
Many companies seeking a two – five year Equipment Term Loan or Lease structure in the $1,000,000 – $20,000,000 range have utilized our services as we deliver reasonable pricing with no Personal Guaranty in most cases.
Our ‘Small Ticket Program’ ($20,000 – $500,000) usually produces an approval during
the first day of underwriting … many times within 2-4 hours as a quick positive result remains important for many prospects and their vendor contacts.
Many 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 many 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 for Equipment Financing and Refinancing: (and many others)
- Oil & Gas
- Energy Services
- Manufacturing
- Industrial
- Construction
- Transportation
- Fabrication
- Healthcare
- Food Processing
Transactions
$29,500,000
For a Mid-West regional industrial parts fabrication company. This new seven year M/E term facility provided consolidation of several equipment loans while significantly reducing monthly payments for the company. Firm had $212.0MM in yearly revenue plus positive EBITDA and Net Income.
$17,750,000
Five-year term loan for an energy services Equipment Rental firm (construction, generators, compressors, light towers, heaters, etc. ) with locations throughout the United States. This approval enabled the company to purchase additional rental equipment while expanding credit lines with major vendors.
$8,160,000
Funding of a four-year Capital Lease for an established pipeline contractor that had a history of inconsistent revenues and earnings for many years. $495,000 of working capital was secured via this transaction as the company also located a new bank which provided increased credit lines.
$4,140,000
This five-year term loan for an expanding transportation company helped upgrade their fleet of trucks and trailers. The firm needed to exit a bank relationship (excessive covenants in place) while securing a very flexible factoring arrangement.
$1,934,000
A small regional healthcare facility with multiple locations required monies for IT, office and testing equipment plus purchase of various medical lasers. A three-year Operating Lease was secured which helped open the firm’s line of credit with their local bank.
$439,150
Five-year term loan via purchase of used equipment for an established highway contractor.
$362,400
Additional new equipment via a four-year term loan for this rubber manufacturing company.
$296,175
Various used trucks / trailers for an energy services water hauling company. Four-year term loan secured.
$171,070
Four-term term loan via purchase of used food canning equipment for a growing company in the Southwest.
$87,100
IT, office and communication equipment for an expanding orthopedic surgeon … three-year term loan obtained.
$56,400
Used stamping equipment (three-year term loan) for an expanding metal parts firm.