Category Archives for commercial equipment financing
Financing For Energy Efficient Lighting
“Financing For Energy Efficient Lighting Installations In Owned And Leased Buildings”
Energy efficient lighting installations can be financed through an equipment financing facility through a number of our funding sources.
This type of lighting installation is typically financed in the form of a capital lease where at the end of the lease term the assets are purchased by the lessee for a nominal amount of no more than $20.
The financing term that is potentially available for financing lighting will range from three to five years in length with the most common terms being four years or less.
Commercial equipment financing can be arranged for lighting equipment installed in both owned and leased buildings.
For leased or rented buildings, the landlord will have to sign a waiver from the lender or leasing company to provide the financing company access to the equipment in the event of default of any financing facility provided as the lighting equipment would form a part of the lender or leasing company’s security.
Because of the nature of the asset, financing approvals will be more straightforward to come by for companies that are at least three years in business and have a well established cash flow for debt servicing as the energy efficient lights by themselves do not offer a great deal of security value to a lender in an installed state.
Companies that are less than three years in business will have to provide at least one strong guarantor in order to be considered for financing.
Energy Efficient Light Financing Can Provide Great Leverage To The Business
In terms of the financing amount compared to the acquisition cost, most of these installations can be funded at or near 100% of the purchase price.
And where there are deliver and installation costs in the price that you wish to finance, these amounts can potentially be funded as well, providing funding in excess of 100% of the purchase price of the actual asset.
If your business is looking to upgrade the lighting in several different facilities, we can also look to set up loans or leases for each location to not only work with your business accounting for each location, but to also spread the financing risk among different lenders which can end up providing greater access to capital as well as many lenders are not interested in having a large position in this type of asset.
The key here is that there can be flexibility to set up the financing in a manner that makes sense for your business operations and operational reporting preferences.
Machine Tool Financing
“Machine Tool Financing For New And Used Equipment”
When we’re talking about machine tool financing, this can include quite a variety of individual pieces of equipment including but not limited to:
Water Jets, Turning Centers, CNC Machines, Turret Punch, Metal Shears, Boring Mills, Routers, Robots, Grinders, Lathes, Machining Centers, Lase Cutters, and many other forms of fabrication equipment and manufacturing equipment.
The more common the use of the asset in an industry, the more financing options there are likely to be for both new and used assets due to the size of the resale market which provides a lender or leasing company with a means to sell off the asset if required, which reduces their risk of providing financing in the first place.
On the flip side, any asset that is highly specialized for a specific application or custom built for your own unique requirements is going to be harder to finance, or at least have few financing options due to the potential lack of an established resale market for the asset.
Regardless if you require machine tool financing for new or used assets, the process for getting equipment financing in place is typically very fast and straight forward.
It starts when you give us a call so we can review your situation with you over the phone to determine what options are available to you. There is no credit check at this point and no paper work needs to be exchanged. The objective here is for us to have a clear picture of your particular situation and your commercial equipment financing requirements, and to complete this process with you in 15 to 20 minutes.
If you want to pursue any of the options we have provided or suggested to you, the next step will be to complete a two page application form accompanied by an invoice/estimate/quote from the vendor for the machine tool asset you want to acquire. Other information such as financial statements, contracts, and so on may be required as well, depending on the specific application. The application process typically can be completed in one day.
Once an application for machine tool financing has been submitted, the request is processed by the financing company in 24 to 48 hours. For larger requests or more complex transactions, the process can take a few days longer.
With an approval in place, the funding process can be completed immediately provided all required documentation is in order.
We have options for A, B, C credit profiles.
Businesses that are three years in business or longer will typically attract better rates and terms.
For A & B equipment financing approvals, lenders and leasing companies are looking for guarantor credit scores of 650 or higher on average.
Machine Tool Financing Can Save On Cash Flow
For companies with a good credit and financial profile, new assets can be financed at or near 100% of the asset cost. And if you want to finance delivery, installation, and training costs, we can potentially secure greater than 100% of the asset purchase price.
With used equipment, the amount of leverage will range from 80% of the asset purchase to 100%, providing excellent loan to value ratios which allow for significant cash flow savings.
Machine Tool financing options can be in the form of an equipment loan, capital lease, or operating lease, potentially providing you with a number of different options to tailor your financing to your business needs.
With an operating lease, at least 10% of the purchase amount does not need to be repaid until the end of the lease term.
A capital lease functions very much like a loan for accounting and tax purposes and provides a nominal buyout cost at the end of the term.
Regardless of your machine tool financing requirement, we recommend that you give us a call so we can quickly go through your situation and discuss with you relevant equipment financing options.
Click Here To Speak To An Equipment Financing Specialist For All Your Machine Tool Financing Needs
Beauty Salon Equipment Financing
“Beauty Salon Equipment Financing For New And Used Equipment”
Beauty salon equipment financing is becoming more and more in demand as the salon world takes advantage of state of the art innovations that can add more value to their customers.
And higher tech can also be higher cost for certain items, which requires a greater outlay of capital by the salon owner.
This is where equipment loans and equipment leases can be utilized to conserve the available cash flow in the business and utilize financial leverage to acquire assets that can be deployed to generate greater returns than the cost of acquisition and financing combined.
But like with any type of equipment financing scenario, the key to getting greater rates, terms, and leverage is when you are trying to acquire established assets from well known and well healed brands that are likely to continue on into the future.
The reason this can be important is that well established brands and equipment lines will have a stronger resale market than totally new technology that has not stood any type of test of time in the market place in terms of the end customer satisfaction as well as the the durability of the asset.
When you have equipment that is highly sought after either in new or used form, there are going to be more commercial equipment financing options as compared to situations where the asset, line, or brand are relatively new.
Beauty Salon Equipment Financing Will Be Both Cash Flow And Asset Based
All that being said, if you have a well established salon that is looking to acquire new state of the art assets, great rates and terms can still be available to you, even if the assets are not well established in the market place yet with respect to resale.
When a business has good cash flow and solid credit, equipment financing companies will be less concerned about the longer term value of unproven assets and more concerned about the track record of the business satisfying its customers and turning a profit.
With equipment leasing as an example, business owners can arrange at or near 100% financing on a piece of beauty salon equipment. And if there is delivery, installation, and even training costs required as well, these costs can potentially be included in the lease, providing in excess of 100% financing in some situations.
Equipment loans are typically the lower cost sources of financing for “A” credit applicants where in order to get the lowest possible rate you may have to pay up to 25% down on the asset.
So the equipment financing solution that best fits your business will need to consider the impact it will have on cash flow at time of purchase as well as on a monthly basis during the lease or loan term.
As previously mentioned, used beauty salon equipment can also be financed provided that the projected future remaining life of the asset is greater than any financing term being sought by the business owner.
And when buying equipment for amounts under $50,000, approvals for financing can be secured in less than a day with funding to follow soon after.
To better understand your options for beauty salon equipment financing, we suggest that you give us a call so we can quickly go over your requirements and discuss different financing products available to you.
Snow Moving Equipment Financing
“Snow Moving Equipment Financing Available On Demand”
Snow moving equipment financing can be put into place in a matter of days if required, provided that the business application has the necessary credit and financial profile to get financing secured and funded.
Approvals can be granted within 24 hours or less for amounts no greater than $75,000.
Larger amounts can be approved as well, but it may take an extra day or two to get a funding approval as more documentation and/or human review may be required by the equipment financing source.
Regardless of your requirements, the speed in which funding can be approved and put into place in a matter of days in most situations.
This can be very important for businesses that 1) have had a break down in the middle of the season; 2) are in need of replacing equipment at the point of first snow fall; 0r 3) are expanding their existing business or going into the business for the first time.
Snow moving commercial equipment financing can be secure for both new and used snow moving equipment.
You can also finance the acquisition of snow moving equipment from a licensed dealer as well as a private seller.
Just keep in mind that with a private seller transaction, there will be more time required to complete the transaction as the lending/funding party will need to complete a search and waver process on the particular asset or assets so that the equipment financing company can be assured that clear title is being made available without any prior liens or encumbrances outstanding.
If you are in a hurry and want to acquire and finance snow moving equipment in the least amount of time, then purchasing new equipment from a licensed dealer will speed up the process considerably as a certain number of application steps will be removed.
Snow Moving Equipment Equipment Financing Can Be Arranged With Little Money Down
One of the benefits of equipment lease financing is that a business can get financing arranged for as little as one or two lease payments made in advance.
And if there is accessory equipment and installation required such as a hydraulic system to be installed on a truck for a new snow plow, the cost of installation and supporting equipment can also potentially be included in the cost of the lease, providing in some cases more than 100% of the purchase price of the asset you are trying to acquire.
This can be a great saver to your cash flow, especially if you need to fund working capital during a time of expansion or business development.
Good rates and terms are also available and are subject to the credit and financial profile of the applicant company.
When dealing with equipment leasing as the equipment financing instrument, you will need to consider whether you want an operating or capital lease. Each has their advantages and have the potential to be structured to better fit your business requirements such as seasonal payments when it comes to businesses like snow plowing and removal.
If you need more information or want to get your application for financing process right away, I suggest that you give us a call and we’ll get all you questions answered and quotations prepared right away.
Millwork Equipment Financing
“Millwork Equipment Financing Options”
Millwork equipment financing options are available through our network of equipment financing and equipment leasing providers.
We provide commercial equipment financing solutions for the purchase and refinancing of both new and used millwork equipment.
For equipment purchases, both direct and private seller scenarios can be accommodated. There is a bit more work and time involved with a private sale as title searches and wavers need to be performed, but it is still possible to get completed within a reasonable period of time.
With used equipment, the equipment financing process will depend on the remaining useful life left in the assets as well as their condition and general resale strength in the market place.
The refinancing of existing equipment is also possible, both for expansion capital and for financing of businesses that are looking to support cash flow during period of financial distress.
Millwork Equipment Financing Proposals Will Vary With Financial And Credit Profiles
While millwork assets are viewed to be good items of equipment for the purpose of lender or leasing company security, the strength of lender or lease company options will depend on the financial and credit profiles of the business and business owners.
Strong financial and credit profiles can attract very good rates and terms for this type of asset.
And if there are additional costs related to acquisition such as transportation, setup, and training, these costs can also potentially be financed at or near 100% of the actual cost, providing a very high level of leverage to the business.
If you are looking to purchase used equipment, the first step would be to send us an itemized list of the assets so we can prequalify them in our equipment financing network. This information should include year, make, model, condition, and estimate of value. Pictures of the assets would also be helpful to provide a lender or leasing company with a better idea of the millwork equipment in question.
For more information on millwork equipment financing or to get a free quotation, please give us a call and we’ll get all your questions answered right away.