Tuesday, August 08, 2006

New Funding Source – Equipment Leasing

From time to time, I’ll tell you about a new financing source that I’ve met. It could be for bank loans or any type of asset based financing including purchase order financing or factoring. Today, I spent some time getting to know a new source of equipment leasing.

This source of leasing is run by an individual with over 25 years in the equipment finance industry. Operated with a lean staff, they are seeking deals ranging from as little as $500 thousand into the tens of millions. Their “sweet” spot is a transaction in the $1 million to $5 million range.

So what’s the big deal about this source? This equipment leasing source works with borrowers when the bank says “no” but there’s still a viable business operation and good people running the business. They look for transactions with a group of borrowers I call “the weak, the weary and the sub-prime”. Deals with a bit of hair. Companies with less-than-perfect credit. Prior bankruptcies or current restructuring candidates are not reason for an automatic rejection. Their attitude is “if it’s an easy deal, go see your banker”.

They can structure equipment leases, term loans and sale-leasebacks and will fund throughout the United States. All asset types and industries will be considered, but long lived assets work best including transportation, manufacturing and materials handling equipment. The equipment can be new or used.

Obviously, pricing, advance rates and other terms will be determined by the facts of the deal.

Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans"

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