Equipment Finance
Equipment leasing and finance solutions. We understand that our clients may have a specific equipment finance need and seek flexibility and a timely process. We strive to offer customized solutions that align with their equipment financial goals, ensuring a seamless experience from application to approval. Below are the equipment financial options:
EQUIPMENT LINE OF CREDIT
Through our Line of Credit, clients can create a borrowing base by using their equipment as leverage. Clients can use this line as needed for working capital, capital expenditures, seasonal cash flow requirements, etc., after the borrowing base has been determined.
TERM LOAN
Customers can use the term loan to leverage their equipment and provide their company with instant liquidity. Depending on the demands of the client, terms usually vary from two to five years.
LEASEBACK
For customers who need to buy new equipment or clear out their balance sheet, our leaseback service enables them to sell their machinery and equipment to the lender and eventually reclaim ownership.
DEAL STRUCTURE
- Position: Senior, 1st position on machinery and equipment.
- Preferred Structures: Asset-based loans, lines of credit, and sale-leasebacks against M&E (only), covenant-free, 2-to-3-year terms, amortized over 4 to 5 years.
- Loan Amounts: $1MM to $20MM forced or orderly liquidation value, 60% to 90% advance depending on industry. The lender may not decline for credit score, financials, revenue, cash flow, etc. If there is a demand for the M&E, the lender may fund the company.
- Rate: Prime + 5 to 8%.
- Points at closing: 4% to the lender | 1%-2% to the originator.
- Third-Party Fees: Appraisal/due diligence and legal fees are due when the term sheet is signed. Typically, 4 weeks to fund from signing the term sheet.
- Industry Preferences: No air, water, rail, farm, or cannabis plants; no Chinese or IT equipment.
- Originator: Corporate Finance New York
- Lender: Third-party affiliate
REQUIRED ITEMS
- Detailed equipment list: Make, model, year, detailed description, VIN/Serial, odometer (if applicable), photos, cost of goods, OR recent appraisal
- Current and prior years' financials (balance sheet and P&L)
- Addresses where the M&E is located, including square footage, excluding warehouse space and office space.
- Debt schedule