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.
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.
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.
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.
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.
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
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.
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.
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.
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)
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.
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.
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.
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.
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.
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.
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.
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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