Equipment Leasing & Financing Referral Program

Lender Referral Success - $6,000,000

EQL was contacted by a large Real estate lender in the Midwest. They had a client that needed capital to expand their operations and bring on a significant new business opportunity. Refinancing or liquidating some of the real estate portfolio was considered, but it would be complicated. EQL was contacted for a possible simple and fast solution. This contractor had a yard full of equipment used in the business; it was determined the best option was a sale-leaseback on that equipment. We provided the company with a $6M cash infusion, allowing them to ramp up operations and take on a significant new client without changing anything in the business or its operations. Discussions are already underway for additional funding with other clients of this lender.

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Welcome To the Equipment Leases Lender Referral Program

The Capital markets have changed dramatically over the past decade. Private equity, family offices, M&A specialists, credit unions, banks, regional and national institutional investors, and billionaire investors deploy their capital, and then, of course, large equipment leasing companies like EQL. Each of these capital resources operates (or should operate) with a very defined risk tolerance and extensive experience in specific markets they understand and are willing to place capital.

Equipment Leases Inc. recognizes that although there are crossovers between these financial lenders and investors, each has a healthy respect for the other. Our lender referral network at EQL is very large and growing as we have become the equipment leasing company of choice for projects between $5M and $100M for a wide range of referring lenders. With more than 50% of our clients returning for additional capital, our lending partners know their customers and referrals will be well cared for.

A person touching a digital display featuring the word "LEASING" and icons related to finance and business.

Why Lenders Direct Business to Equipment Leases Inc.

When banks and other financial institutions recommend a leasing company for equipment needs to their clients as it aligns with their client’s requirements or when they face limitations in providing lending services themselves for reasons. These are some scenarios that may lead to such referrals.
  • 1

    Client Credit History

    When someone’s credit isn't perfect enough for a bank or other lender to offer financing options, equipment leasing companies might be more willing to work with them. They tend to have flexible credit criteria and can assist clients with weaker credit backgrounds.

  • 2

    Maintaining Cash Flow Strategy

    Customers might opt for equipment leasing instead of making a sizeable initial downpayment. Leasing enables companies to safeguard their cash flow by distributing payments over a period, making managing their day-to-day activities easier. We also routinely finance 100% of the equipment costs, including soft costs that may be incurred.

  • 3

    Specialized Equipment Needs

    Equipment leasing firms typically have experience across a broad range of industries and are well-versed in financing various types of equipment. However, there may be times when another institution doesn’t have the same level of expertise and might opt to direct clients to experts who can more effectively cater to their requirements.

  • 4

    Balance Sheet Reporting

    Leasing is a strategy that is often preferred in reporting assets and liabilities. Although an operating lease is no longer able to be identified as an off-balance sheet transaction, it is simply identified as an ROU (right of use) asset and corresponding lease obligation on the company books

  • 5

    Higher Risk Profile

    Risk Management Strategy. Leasing firms might consider accepting clients with high-risk levels or engaging in transactions that fall short of a bank's loan requirements. This may involve working with startups or firms in sectors or those seeking funding for assets that depreciate quickly.

  • 6

    Flexibility Regarding Conditions

    Leasing companies frequently provide payment options, such as payments or deferred plans, to align with a client's cash flow cycle needs that may not fit traditional loan structures recommended by banks.

  • 7

    Provisions to Keep Equipment Current

    Evolving technology poses a challenge for equipment prone to quick obsolescence, like IT or manufacturing equipment, making leasing a more appealing choice in such cases. Clients can upgrade equipment at the lease terms end without being burdened by outdated assets, prompting banks to recommend leasing companies to their clients.

  • 8

    Loan Limitations

    When a customer needs to borrow more money than the bank allows or is willing to lend, they can ask for help from a leasing company that may offer the funds required. We are willing to work hard to find a way to make a project come together, which oftentimes requires some creativity. (which we excel at)

  • 9

    Client Preference

    Some customers might choose to lease their equipment because of tax reasons, or lower initial expenses and the option to upgrade equipment frequently. If a customer indicates a preference for leasing, the bank could direct them to a leasing firm for their requirements which happens often.

  • 10

    Non-Core Business Lending

    Banks might decide to concentrate on their core lending services and products and redirect non-core operations, like equipment financing, to specialized leasing firms as a strategy to uphold client relationships and guide them to the most suitable solutions for their requirements.

  • 11

    Fast Turnaround

    Quicker Approval Process: Equipment leasing firms usually offer approval processes that bank loans don’t. When a client requires financing to seize a business opportunity fast, the bank may recommend turning to a leasing company for expedited service.

  • 12

    Harnessing the Power of Connections

    Many banks and other financial partners have referral arrangements with leasing companies for equipment and might recommend clients as a strategic collaboration effort that benefits both sides by enhancing client service.

  • 13

    End-of-term Flexibility Requirements of the Customer

    At the end of the lease term, leasing options for clients, including buying the equipment at a market value or returning it, or getting new equipment, might suit their long-term plan better, which could lead the bank to suggest a leasing company to the business.

  • 14

    UCC filing On the Leased Equipment Only

    An equipment leasing company will file a UCC registration on only the equipment that is being acquired, leaving any other UCC filings from the bank of lender in place.

By suggesting equipment leasing companies to clients in need of financing options beyond the bank’s offerings, banks, and other lenders can ensure that their clients get tailored solutions that suit their unique requirements.

The Types Of Lenders and Investors We Serve

Private Equity Firms

  • Private investors may direct business towards an equipment leasing firm for a range of reasons linked to the requirements of their portfolio companies or the nature of their investment. Private equity firms frequently purchase businesses that need equipment to enhance the efficiency of their operations and update their infrastructure or increase their production capabilities effectively and efficiently without depleting liquidity or resorting to conventional borrowing methods; they might recommend these businesses to equipment leasing companies instead.
  • Private equity firms may opt to lease or purchase equipment to keep their capital structure agile and prevent it from being locked up in assets that lose value over time.

Venture Capital Firms

  • Startup Capital Management: Venture-funded startup companies often require resources such as technology infrastructure and manufacturing equipment; however, they may face challenges in accessing loans due to limited cash flow or credit history. In some cases, venture capital firms could recommend these startups to leasing companies as a way to acquire essential equipment without further diminishing their ownership stake.
  • Managing Risks: Startups can reduce risks by leasing or making upfront investments in capital assets and saving funds for essential functions, like research and development or marketing efforts.

Family Offices

  • Family offices that oversee an estate or families’ finances typically invest by putting money into multiple sectors and industries of interest to them. In situations where their invested companies or direct financial ventures require equipment or resources, these family offices may opt to recommend leasing companies to provide the needed assets to make upfront payments themselves, thus minimizing financial exposure and risk.
  • Tax Efficiency Benefits: Choosing to lease can provide tax benefits that family offices may consider utilizing for their investments in sectors with capital requirements.

Hedge Funds

  • Asset-light Investment Strategy. Hedge funds specializing in assets or companies during reorganization often recommend businesses opt for equipment leasing services to steer clear of capital investments. This is especially beneficial in turnaround scenarios where conserving cash is paramount.

Real Estate Private Equity

  • Real Estate private equity firms overseeing commercial properties might direct their property management companies or affiliated businesses to leasing firms for equipment necessities such as HVAC systems and security systems to handle capital expenditures more efficiently in property operations.
  • Real estate companies can effectively control expenses and cash flow by opting for leasing arrangements to ensure returns on their investments in the real estate sector.

Private Debt Financing

  • Private debt funds are an investment option utilized by individuals and organizations looking to diversify their portfolios and potentially earn higher returns on their investments.
  • Private debt funds that offer lending or mezzanine financing may suggest clients to equipment leasing companies in cases where the equipment requirements surpass the fund’s risk profile or capital allocation strategy for a flexible financial solution.
  • If a private debt fund offers a loan that doesn’t meet all of a company’s capital requirements, it could recommend equipment leasing as a financing alternative.

Business Development Companies (BDC)

  • Companies engaged in expanding their business operations are known as Business Development Companies (commonly abbreviated as BDCs).
  • BDC companies that invest in mid-sized businesses often recommend companies in their portfolios to equipment leasing firms to meet their equipment requirements to access all of the flexibility offered previously.
  • Managing Cash Flow Effectively: Leasing offers BDC portfolio companies a means to better manage cash flow requirements, which is crucial for sustaining stability and fostering growth.

Specialized financial firms

  • Specialized financial firms that cater to markets, like factoring or trade finance, might recommend clients to equipment leasing companies for their equipment needs if they’re beyond the scope of the financial company’s services or knowledge.
  • Specialty finance firms can improve client retention and foster stronger relationships by recommending leasing companies to clients needing services and products beyond their scope of expertise or offerings.

Why EQL Is The Perfect Referral Partner

A person working on a laptop with a holographic display that features the words "PRIVATE EQUITY" and various financial charts and graphs.

Referring a business to Equipment Leases Inc. might be an option since the company provides benefits that match the requirements of both the referrer and the client. Here are a few possible explanations why Equipment Leases Inc. could be the preferred choice.

  • Tailored Leasing Solutions
  • Affordable Funding Options
  • Speed and Underwriting Efficiency
  • Expert Industry Knowledge
  • Strong Track record with Repeat Customers
  • Innovative Lease Structures
  • Willing To Look at All Credits
  • World Class Customer Service
  • End of Lease Flexibility
  • Able to Fund Multiple Schedules
  • Larger Upper Loan/Lease Levels
  • Innovative Lease Structures

Lender Referral Quote Request Form

Filling out the Lender Referral Quote Request Form is crucial to streamlining your equipment leasing referrals and ensuring your clients receive the best financial solutions. By providing essential details, such as your name, client project description, and funding requirements, you enable Equipment Leases Inc. to tailor leasing options that fit your client’s specific needs. Whether your referral is for a private equity firm, a family office, or any other specialized financial institution, our experts are ready to offer flexible and customized solutions.

Completing this form allows us to act quickly, ensuring a seamless process from initial consultation to final approval. With our extensive lender referral network and a strong track record of repeat customers, we are well-positioned to deliver competitive leasing packages for projects ranging from $5M to $100M. Don’t miss out on the opportunity to provide your clients with expert leasing services beyond traditional lending limitations.

At Equipment Leases Inc., we pride ourselves on offering fast, efficient underwriting and innovative lease structures. By submitting the Lender Referral Quote Request Form, you take the first step toward securing high-quality leasing solutions that benefit you and your clients. Please take a moment to fill out the form today, and let’s work together to provide your clients with the financial flexibility they need to thrive.

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