Fast, flexible equipment refinancing to get your business the working capital it needs to thrive today.
Equipment Refinancing is used to monetize the equity tied up in long-term assets such as machinery or vehicles owned by a business. Assets already owned by the business can be refinanced to release funds for use to raise capital, consolidate debt, or replace existing debt using the equipment as collateral for the loan.
Equipment Refinancing is a:
Unlock the power of your assets to secure the financing your business needs.
Whether you’re going through a period of growth or need some leverage during a turnaround scenario, eCapital can help with our various equipment refinancing options. Here’s an example of a few clients we’ve helped:
OVERVIEW
Looking for $~4-5mm to pay drivers and cover some short-term working cap needs.
PROBLEM
This strong trucking business did $85mm+ in revenue and $7mm+ in EBITDA in 2022, but were hit hard by the drop in freight demand coupled with higher diesel prices and have a cash crunch. They needed to pay their drivers and cover some short-term working capital needs to keep their business running smoothly.
SOLUTION
eCapital helped this trucking business leverage their abundance of collateral in the form of trucks, trailers, real estate, and accounts receivables to get them a short-term boost in capital. This business was able to quickly pay their drivers and purchase more trucks & trailers to expand their fleet.
OVERVIEW
Equipment refinancing helps a fleet of Chassis trailers get the cash needed for important growth.
PROBLEM
Having reached the max in facility size at their current factoring company, this Chicago-based trucking company’s growth trajectory had stalled. As a fleet of 200 trailers, 180 were owned outright, leaving 20 brand new trailers under bank loans. The trucking company was experiencing extreme cash strain. They needed more cash to not only keep the business running but position them to meet their business goals that year.
SOLUTION
This trucking company reached out to eCapital, who reviewed the business statements and helped them understand their options. We first extended the fleet’s facility limit to accommodate the company’s growth in A/R. We then were able to refinance the debt owed on the remaining 20 trailers in the fleet, which provided the company with the immediate cash needed for their business. In refinancing the existing equipment, the fleet was able to reinvest in their business and regain competitive advantage in the market.
OVERVIEW
Fleet of 35 Super B tankers was experiencing a lack of sufficient funds to stay in business.
PROBLEM
This tanker business was cash flow negative and quickly at risk of going bankrupt, as a result of market demand. They needed cash and felt the next best move was to refinance their trailers. The bank providing the equipment financing for the Trucking Company’s fleet of 35 Super B tanker trailers had reached its internal lending limit and advised the customer that they would not provide equipment refinancing loans.
SOLUTION
The Super B tanker business needed access to working capital to strengthen operations and right-size the business. We initiated an easy qualification process and got to work on flexible lending terms based on the fleet’s situation and business objectives. First we gave the tanker business an increased A/R facility. Then we assessed the financial worth of the fleet of 35 trailers and proposed a term loan solution. There was value in their trailers. This tanker business used the capital from the loan and applied it back to the business.
OVERVIEW
Looking for $~2-3mm short-term working capital to purchase manufacturing equipment & a new HDPE plastics mould.
PROBLEM
This expanding commercial manufacturer did $25mm+ in revenue and $4mm+ in EBITDA in 2022 but were needing to shift their product mix to abide by new government regulations. Rising inventory due to the global pandemic put this strong business into a short-term cash crunch that restricted expansion initiatives.
SOLUTION
eCapital helped this successful manufacturer exit their short-term cash crunch by leveraging two 2021 Scholer Industrial CNC machines, existing inventory, and their outstanding accounts receivables. The manufacturer was able to use their unlocked working capital to purchase additional equipment and a new mould, and reintroduce their product offering into shifting markets.
OVERVIEW
Looking for $~1.5-2mm short-term working capital to settle remaining credit at a national bank due to bank credit recall from a covenant breach.
PROBLEM
This expanding manufacturer ran into supply chain difficulties post-pandemic and found itself in a difficult spot with its existing lender. Tightening restrictions from the bank forced this manufacturer to come up with liquid capital in 10 days to settle existing credit and exit the bank relationship. Due to supply chain delays, this business did not have the cash reserves to cover the short-term credit repayment obligations.
SOLUTION
eCapital was able to quickly provide this manufacturer with the short-term cash to cover these repayment obligations and aid in the bank exit. Leveraging outstanding accounts receivables alongside unencumbered manufacturing machinery, eCapital was able to provide this manufacturer with a $1.75 Million term loan to settle existing credit and increase short-term cash flow to meet payroll. From there, eCapital was able to provide them with a new facility of $3.5mm against receivables and $300,000 against company inventory at an APR of 12%, which ended up being $750,000 more working capital than with the bank.
We provide equipment refinancing for a range of equipment types across multiple industries. With extensive knowledge of the used equipment marketplace, we can make quick decisions to expedite your funding needs. In addition, we will consider older and specialized equipment that other sources may pass on. Our areas of focus include:
eCapital is an industry-leader in the equipment refinancing space. Here are a few reasons why businesses choose eCapital as their equipment refinancing partner:
We offer the highest asset valuations at competitive Annual Percentage Rates (APR).
We provide industry-leading valuations on equipment with up to 75% Net Orderly Liquidation Value (NOLV).
Applications are received, reviewed, and qualified within days and we pride ourselves on quick, easy & honest service.
Due to our extensive years of experience in 80+ industries, we’re able to quickly provide your business with a tailor-made solution.
You can count on our team to be a valued consultant for the life of your term loan and beyond. Your success is our success.
Due to our experience, we offer fewer restrictions than the banks, no reporting requirements, and limited loan covenants.
For over 25 years, eCapital, has helped more than 30,000 companies grow their businesses. We want to do the same for you. Take a look at the latest reviews from our alternative finance customers on TrustPilot!
Here’s how equipment refinancing typically works:
Equipment refinancing is a type of asset-based lending where the equipment serves as collateral for the loan. The purpose of refinancing is typically to obtain a significant injection of working capital or to restructure debt. Refinancing can be used to fund growth, support a turn around strategy, or consolidate multiple loans, making it easier to manage debt more efficiently and improve financial stability.
Equipment financing is a type of business financing used to acquire equipment (new or used) needed for the operation of a business. This financing is typically used when a business needs to acquire equipment but does not have the funds to purchase it outright. The lender will provide funds to purchase the equipment and the business will make regular payments (including interest) over the term of the loan until the equipment is fully paid off.
Upon inquiry of Equipment Refinancing, you’ll be connected with an expert within minutes to start chatting about solutions for your business.
Equipment Refinancing applications are received, reviewed, and qualified within days at eCapital. A term sheet outlining the estimated equipment value, rate of advance, interest rate, payment schedule, and the loan terms are presented.
eCapital’s unique position and understanding of your industry allows us to limit the restrictive covenant requirements for our clients. At eCapital your Equipment Refinancing facility will not have the following typical requirements you’d see from other institutions:
Instead, at eCapital the following points outline the requirements necessary for an Equipment Refinancing facility:
Equipment Refinancing from eCapital is provided as a Term Loan with a specified repayment schedule and a fixed or floating interest rate.
Interest rates on Equipment Refinancing loans from eCapital vary depending on each unique scenario; however most scenarios have an interest rate formula built around a Prime Plus rate.
