Equipment Financing & Leasing FAQ Guide
Equipment Financing Questions?
Browse the questions already asked. If your answer is not there, fill out the quick form, and we will have an answer back to you on the same day. You can also explore our informative Blog Posts. If you still need assistance, please get in touch with us!
Brad O - What types of equipment can be financed?
Barbara P - What are the typical rates or costs of leasing equipment?
Traci – Rates vary based on credit profile, time in business, equipment type, transaction size, lease structure, and a dozen other factors. Our underwriting extends far beyond the current financial profile; we examine the entire operation and can usually identify a path for even the most complex structures. Our primary goal is to ensure that every transaction is approved with a payment structure that aligns with your cash flow and business objectives.
Ernest A - How long does the approval process take?
Traci – We can obtain pre-approvals for many transactions within 24–48 hours once a complete application is submitted. More complex transactions may take slightly longer, but we prioritize speed and clear communication throughout the process. Our underwriting and document departments are an award-winning team that can make even the most complex transactions seem simple.
Mark T - What credit requirements do I need to have to qualify?
Traci – Hi Mark, the approval criteria depend on the deal size and structure. We primarily work with established businesses that have been in operation for a minimum of 2 years and have a balance sheet that demonstrates a company with a positive history. We are also able to consider new companies or those rebuilding after a credit issue, with mutual understanding that we may need to be creative in crafting a path to approval. Time in business, financial strength, and the quality of the equipment all play a role in underwriting. I might also mention that compiled financials are good, financials with an accountant review are great, and a company with audited financials goes right to the front of the line.
Alex W - Is a personal guarantee required?
Traci – Personal guarantees are common, especially for small to mid-sized businesses; however, options may exist for limited or non-PG structures, depending on credit strength, deal size, and financials. If you currently have an LLC structure, then personal guaranty is required. From a lender’s standpoint, if an owner is not confident enough in his future to back it up with a PG, why would any lender want to take on the risk? Alex, we remain willing, however, to look at any of your upcoming projects
Bill O – What types of lease structures are available?
Traci – We offer a comprehensive range of leasing and financing structures, including Capital Leases, Operating Leases, Sale-Leaseback Financing, Step Up Leases, Seasonal Cash Flow Leases, and more. We traditionally work in tandem with the company’s internal accounting team and CFO or their outsourced professional team to ensure the lease is structured for maximum benefit to the company.
Steve P - How would you work with a Private Equity group that owns a piece of my company?
Traci – Good question, Steve. We are a perfect fit with existing investors and bring significant value to the relationship. Any Family Office or Private Equity Group likes to see its investment grow. We provide up to $100 million for CAPEX equipment or production line upgrades, including robotics. Any Private Capital Investment, like the one you have, is enhanced with the introduction of our capital, and there is no dilution in your equity. We currently have numerous projects brought to us by PE firms and welcome yours.
Margaret B - Are there any upfront costs or fees?
Traci – We finance 100% of any project from $250k to $100m plus, including soft costs. The only upfront costs are the traditional last payment deposit that accompanies any standard lease agreement. We even make it easier by taking a small portion of that amount with the lease application and the balance when it’s funded. If, for any reason, we are unable to obtain project approval, any deposits made will be returned promptly.
Bob T - What happens at the end of the lease?
Traci – At the end of the contracted lease period, the client has several options, depending on the type of lease they have. End-of-term options depend on the lease structure and may include purchasing the equipment, returning it, upgrading it to new equipment, or refinancing the entire amount. We are pleased to have over a 50% return rate, meaning more than half of our clients come back to us for more capital in a second or third schedule
Rachel H - Why lease equipment instead of paying cash or using a bank loan?
Traci – Leasing can help preserve working capital, provide faster approvals than traditional banks, offer flexible structures, and potentially deliver tax advantages depending on your situation.