The process of leasing equipment for any business can be a daunting prospect. However, before pulling the trigger on new or used equipment to replace an aging unit on the production floor, there are many things to consider. The company’s cash flow, expected use of capital for the next several quarters, tax implications, urgency of the equipment needed, and a dozen others.
At Equipment Leases Inc., we have been businessmen long before we were financiers and have firsthand knowledge and understanding of what it’s like to own and operate a small or large business. This knowledge drives our credit decisions far beyond the black and white of the company financials; we want to know the strategy and how funding a specific piece of equipment will offer a competitive advantage that will completely change the company and its balance sheet.
We were privileged to participate in a 21-million-dollar BIODIESEL facility in central California. Our competitor was a prominent California State Banking group that moved slowly and became buried with red tape. The introduction to closing and wiring funds to the first scheduled lease was an amazing 30 days. We funded the construction for eight months and then commenced the lease. We provided the client with a payment equal to 120-month amortization by utilizing a shorter term with a balloon payment. The larger a project is, the slower the money center Banks are to consider funding. We were able to fund it so quickly because the client was prepared and responsive with their financials, and our teams are simply the BEST!