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Equipment Leasing Financing

Optimize Cash Flow with Equipment Leasing Financing

If you are ready to maximize the potential of your assets and you own heavy equipment and machinery, you may want to consider entering into an equipment leasing financing agreement. This type of loan is a great way to free up working capital or unload some debt.

When you enter into this type of agreement, you sell your equipment with a finance company, which then allows you to rent your equipment back to you for an agreed upon monthly payment. Your use of the equipment is not interrupted when you enter into the agreement.

If you have a business that needs flexibility when it comes to handling financial matters, using the equity in your equipment and other assets is a savvy way to get the money you need to restructure or grow your company. When you are ready to consider equipment leasing financing, turn to First American Merchant. In addition to having a reputation of find a solution that meets your needs, it simplifies the process.

Whether you want to optimize cash flow, improve your balance sheet, or increase liquidity, equipment leasing financing is a popular, smart way to get extra cash, specifically during tight economic times. This is a beneficial strategy because you are freeing up capital that is otherwise sitting in fixed assets that aren’t using their maximum earning potential.

Businesses that Should Consider Equipment Leasing

Any business that no longer fits into a traditional bank’s parameters for lending, such as a company that is about to undergo a major restructuring or is coming out of bankruptcy, should consider using an equipment leasing financing option. In addition to there often being tax benefits, it provides these types of businesses with a viable option to free up cash.

The amount of money you receive for your equipment is determined after the leasing company reviews your application and documents. Since financing is determined by auction value of the equipment, credit score and your existing cash flow are not factored into the final decision. This also makes this type of financing ideal for small businesses with no or poor credit. When you work with First American Merchant, we arrange and finance up to 70% of the auction value of equipment that you own.

Though there are several advantages, it is important to remember that if you default on your loan, your equipment will be repossessed.

Types of Equipment that Can Be Leased

Many types of equipment and machinery can be purchased by finance companies and leased back to its former owners.

You can sell and lease the following types of equipment:

  • Bottling
  • Aggregate
  • Aviation
  • Agricultural
  • Concrete and construction
  • Company jets and helicopters
  • Manufacturing
  • Drilling
  • Machine Tools
  • Food Industry
  • Fabrication
  • Plastics
  • Printing
  • Processing
  • Pharmaceutical
  • Packaging
  • Metalworking
  • Marine
  • Medical

It is important to note that any equipment that is to be considered for this type of financing must have an active secondary market and a liquidation value of at least several thousand dollars. You are likely not a good candidate for this type of loan if you have a bunch of small pieces of equipment with low values.

What You Need to Apply

To apply for an equipment leasing loan, you will need to submit bank statements from the last three months, as well as a list of your equipment.

First American Merchant offers lending amounts between $25,000 and $2 million. Terms are for 36 months and financing amounts are based on the current liquidation value of the equipment. Since these payments are spread out along 36 months, you also can expect to pay lower monthly payments and rates than you would with other types of loans that are available to small businesses.

The Final Thought

Whether you want to optimize cash flow or retire debt, equipment leasing may be right for your small business. If you are ready to take your business to the next level but you don’t have the cash on hand to do it, then consider applying for equipment leasing financing from First American Merchant. Its application process is simple and easy. Apply online today to put your business on the path to success.