Equipment Lines of Credit

Why is an Equipment Line of Credit the Answer?

How many times have businesses missed out on purchasing the perfect equipment because financing was not in place? Banks move at their own pace. Vendors sell to the first customer ready to provide funds. You sit around waiting for answers while the equipment you need sits in a warehouse, or worse, in the hands of your competition. Our equipment lines of credit eliminate the approval process, expediting the purchase of necessary equipment for our clients. Simply set up an equipment line of a credit and you’re on your way. Every time you find that perfect equipment, send us an invoice and we’ll immediately send funds to the vendor. The equipment is earning a return for your business while your competition is still waiting to hear back from their bank.

When is an Equipment Line of Credit the Answer?

Equipment upgrades and replacements are inevitable. Even careful consideration and project planning will quickly switch into overdrive once the organization decides to move forward with a project. Once in overdrive, the process of identifying potential financing partners, soliciting proposals, conducting due diligence, and analyzing financing terms for each and every project is both unreasonable and costly. It becomes an obstacle in the process of obtaining business-critical equipment and eliminates the opportunity for economies of scale. Particularly onerous are complex projects involving lengthy implementation and multiple vendors. Or worse: multiple, overlapping projects. In cases like this, many companies choose a lease line of credit. Why? Lease lines are typically set up for 24-60 months at a time and eliminate the need to conduct due diligence on a new vendor for each and every project. Better yet, they can be set up in advance of the project(s).

Easy Access Equipment Lines of Credit

  • One-page initial application and never worry about funding again
  • Lines of credit up to $50 million
  • Unlimited draws against the Equipment LOC
  • Simply submit an invoice and pick up your equipment
  • Maximum tax deductions and benefits under Section 179

Is an Equipment Line of Credit Right for You?

  • Complex projects
  • Multiple vendors and timelines
  • Growing company with future, yet-undetermined projects
  • Need the maximum amount of tax deductions
  • More than one project at a time


How to Obtain a Equipment Line of Credit

If you checked any of the boxes on the list, a lease line of credit probably makes sense for your company. Private lenders, banks, and even the vendors themselves can provide it for you. Beware, however, that banks often charge set-up costs and non-utilization fees for this service, whereas private financing companies do not. Separately, vendor finance solutions will frequently not include products from other sources in the financing package, and are therefore a short-term solution. With any of these providers, a deposit is typically required.

Another side benefit to the lease line of credit is the opportunity for a better, more strategic relationship with your lender. In this scenario, your lender acts as a project manager, helping you manage your multiple leases, suppliers and fundings. Like a home equity line of credit for personal home improvements, a lease line of credit can take a lot of the headache out of business technology and equipment improvements.