Category Archives for commercial equipment financing
Cremation Equipment Financing
“Do You Need To Finance New Or Used Cremation Equipment?”
Cremation equipment financing for both human and animal cremation services can be secured from a number of different lending sources including banks, other institutional lenders, or leasing companies.
Like any equipment financing application, the more standardized the cremation equipment the easier it will be to finance and the better rates and terms you are likely going to be able to secure. On the flip side, the more specialized or customized the asset, the more difficult it will be to finance as it will not provide very much security value to the lender or leasing company.
Commercial equipment financing under $50,000 are primarily approved by the credit standing of the business and the primary shareholders of the business if it’s incorporated, or the primary owners if the business is a proprietorship or partnership. As the amount of financing that is required increases, the more financial information will be required to show the business’ ability to repay the debt as well as to support the borrowing covenant of the business.
used cremation equipment can also potentially be financed, provided that the equipment is not too old and in very good condition. As mentioned earlier, the more there is an active reselling market for a given type of cremation asset, the more likely it can be financed through a loan or lease.
Get Cremation Equipment Financing That Meets Your Needs
If cremation equipment financing is required on several different assets, all items can be included in one financing facility or they can be broken out into individual loans or leases, provided that the individual asset cost is at least $5,000. In situations where the amount of financing for multiple assets starts to increase above $50,000, a business can also look at splitting up the application among leasing companies as an example. As long as the company can qualify for the overall level of debt, it may be easier to get the assets approved for financing through multiple applications.
The best rates and terms can be acquired through both bank and lease financing facilities. As the credit position of the applicant weakens, the “B”and “C” equipment financing options will come exclusively from leasing companies as banks and institutional lenders only finance “A”Credit deals.
If you have a cremation equipment financing requirement, give us a call and we’ll discuss your available options.
Snow Plowing Equipment Financing
“Do You Need To Finance New Or Used Snow Plowing Equipment?”
Equipment financing for snow plowing equipment can be provided for seasonal entrepreneurs plowing snow on contracts or for businesses that require their own snow plowing equipment to manage the snow fall on their own lots and land.
Because of the seasonal nature of the asset use, snow plowing equipment can have a very long useful life, which makes the financing of used snow plowing equipment very possible provided that the owner of the assets keeps all items in good condition and good working order.
For seasonal businesses where snow plowing may be the primary source of revenue, equipment loans and leases can be set up so that the payment being made are also seasonal to correspond better to when cash is on hand and generated from the assets. This can be quarterly, semi annual, or even annual payments, depending on the particular situation and strength of application.
Snow plowing equipment that can be financed can range from walk behind snow blowers to self propelled tractor units specifically designed for plowing snow. All the snow plowing blades and accessories can also be financed with lease and loans being able to combine multiple items if required.
To secure commercial equipment financing for used snow plowing equipment, be prepared to have to put down a down payment of between 10% and 25%, depending on the age and condition of the asset and the strength of your credit profile. The older the asset, the more likely that the repayment period will also be shorter that what you would expect with new equipment.
Get Snow Plowing Equipment Financing That Meets Your Needs
Snow plowing equipment financing can come in the form of an equipment loan or an equipment lease. Equipment loans are typically provided by banks and institutional lenders provide financing for “A”credit applicants. Equipment leasing companies cover off a much broader range of credit profiles for both new and used equipment types. Leasing companies also tend to have a more streamlined application and approval process than institutional lenders which can cut a significant amount of time off the process from start to finish.
If you’re in need of snow plowing equipment financing for new or used snow plowing equipment, please give us a call and we’ll quickly assess your situation and provide the most relevant equipment financing and leasing options for your consideration.
Diagnostic Equipment Financing
“Do You Need To Finance New Or Used Diagnostic Equipment?”
Diagnostic Equipment financing can be secured through different equipment loan and leasing programs.
As it stands to reason, any diagnostic equipment that is highly technology driven and that can quickly become obsolete will provide very little security value to a lender or equipment leasing company. Therefore, the decision making process for the equipment financing company is going to be more about the strength of the business cash flows, the credit rating of the borrower, and the personal guarantees or corporate guarantees that can be pledged. The stronger the overall financial package, the longer the loan or lease term that you can expect to secure.
Even for used diagnostic equipment, there could still be a financing rationale similar to the above, but potentially for a shorter period of time such as 24 to 26 months.
The key for financing used equipment will be the condition of the assets and the probability that not only will the technology be valid through out the lease or loan term but also that the equipment is likely to operate past the end of the term.
To secure commercial equipment financing for diagnostic equipment, you may also have to be prepared to put down a size able down payment depending on how well you meet or satisfy the other lending criteria.
Get Diagnostic Equipment Financing That Meets Your Needs
Diagnostic equipment financing in the form of an equipment loan is more likely only available through a bank or institutional lender. This category of lender is typically low risk in nature, so you will have to have a very strong financial profile or be able to qualify through some of the government assisted and/or insured loan programs that are administered by the major banks.
While leasing companies can also provide “A” type lending rates and terms, leasing companies as a whole cover a much broader spectrum of credit and risk profiles. To qualify for credit for diagnostic equipment you may have to consider a higher rate of interest depending on your credit profile, but if you can minimize your down payment and get the repayment terms you’re looking for, it could still be worth the cost.
Regardless of your situation or requirements, the first step for understanding and securing equipment financing for your business is to give us a call so we can get all your questions answered right away and provide equipment financing options for your consideration.
Dry Cleaning Equipment Financing
“Do You Need To Finance New Or Used Dry Cleaning Equipment?”
Dry Cleaning Equipment financing can be arranged through an equipment loan or equipment lease.
For going concern businesses that are earning a profit on an annual basis, there will be a greater appetite on the part of lenders or leasing companies to finance this type of asset. For new businesses or relatively new businesses where there isn’t yet much of an established track record of operational perform capable of servicing debt, the financing amounts available will typically be under $100,000 and will require good credit and strong personal guarantees from the principal owners of the business.
Used dry cleaning equipment can also be financed, but again the focus of the equipment financing company is going to be on the strength of the cash flow of the applicant company. Used equipment will not hold as high a security value as new equipment, so there will automatically be a greater focus on the cash flow and the credit profile.
In some situations where multiple pieces of equipment are required, it may be possible to spread the financing over multiple lenders or leasing companies in order to generate enough borrowing power. For amounts under $25,000, the risk assessment requirements are much similar and most lenders may be more comfortable only holding some of the debt versus all of the financing required for all the different dry cleaning assets you may be trying to finance.
To secure commercial equipment financing from a bank, the credit profile is going to need to be strong as well as the guarantor profile. Equipment leasing companies collectively cover a much broad spectrum of credit than what you will see from a bank or institutional lender.
Get Dry Cleaning Equipment Financing That Meets Your Needs
Dry cleaning equipment financing from a leasing company will not only cover a variety of credit profiles and states of business development, but the applicant may also have some flexibility securing an operating or capital lease, depending on the businesses tax situation and cash flow requirements. In order to best understand the type of equipment leasing structure that may be the most appropriate for you business, you may want to consult with your accountant and/or your taxation adviser.
If you’ve identified dry cleaning equipment you need to finance right now or are just starting the acquisition process, please give us a call so we can get all your questions answered and provide dry cleaning equipment financing options for your consideration.
Restaurant Equipment Financing
“Do You Need To Finance New Or Used Restaurant Equipment?”
Restaurant equipment financing and equipment leasing can be arranged for such assets as bar management software, POS systems, commercial kitchen equipment, display cases, bar chair, booth, freezer, range, sanitation system, fryer, mixer, bar stool, oven, air conditioning system, cooler, and so on.
If you are in the process of trying to finance a piece of restaurant equipment that’s not listed above, give us a call right away so we can get the asset qualified with one of our lending sources.
The main qualifying factor for restaurant equipment is cash flow. The more reported cash flow a restaurant has, the easier it will be for the business to secure commercial equipment financing for any new or used equipment the business may require. When reported cash flow is tight, the equipment financing companies will tend to reduce the loan to value amounts provided down to a low of 50% for new equipment and even lower for used equipment.
Because of the high turnover rate of restaurants as well as the out right business failure rate, equipment financing and leasing companies will continue to be more focused on established cash flow versus the asset value due to the low amount of recovery that can be expected in the resale market in the event of a financing default.
Get Restaurant Equipment Financing That Meets Your Needs
For the averaged sized restaurant operation, its likely that cash is going to be required in the transaction, even for new equipment.
Equipment financing for restaurants is provided through institutional bank loans or equipment leases. Many of the loans provided are through government backed loan programs where part of the loan principal is insured by the government to reduce the risk to the lender of loss and increase their ability to extend loans to small business owners in the restaurant business.
Equipment leases can be secured in the form of an operating lease or a capital lease. Leasing terms for used equipment may only be for 24 months to 36 months with terms for new equipment ranging from 48 months to 60 months on average.
Equipment that is purchased through a private seller can still be financed after the fact by an equipment financing or leasing program provided that there is a strong paper work trail to show the exact payment of funds, the source of the payment, and the timing of the transaction.