EQUIPMENT REFINANCING

GET THE CAPITAL YOU NEED BY REFINANCING THE EQUIPMENT YOU OWN

Fast, flexible equipment refinancing to get your business the working capital it needs to thrive today.

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See what we can do for your business.

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YOUR EQUIPMENT CAN DO MORE

You have highly valued equipment assets. Our team of equipment refinance experts can help you unlock the equity in your equipment to get you the funding you need to achieve your business goals.

Funding acquired through equipment refinancing can help to:

Unlock hidden working capital now

Use the funds for new equipment, raw materials, real estate, building improvements, operations, marketing or R&D.

Accelerate your turnaround recovery time

Equipment refinancing can offer your business a significant injection of cash to leverage during a turnaround scenario.

Lower monthly payments on assets

Restructuring your amortization schedule with equipment refinancing can often improve your monthly payment terms.

Fuel growth while retaining equity

Equipment refinancing allows you to grow without giving up equity shares of your business.

WHAT IS EQUIPMENT REFINANCING?

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:

  • Type of financing solution that leverages your business’ existing assets.
  • Financial tool used to convert long-term assets into cash in hand.
  • Term loan with a specified repayment schedule and a fixed or floating interest rate.

Unlock the power of your assets to secure the financing your business needs.

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CASE STUDIES

DO THESE SCENARIOS SOUND FAMILIAR TO YOU?

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:

OTR FLEET BUSINESS OUT OF OMAHA, NE, USA

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.

200+ FLEET OPERATION OUT OF CHICAGO, IL, USA

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.

SUPER B TANKER BUSINESS OUT OF FORT WORTH, TX, USA

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.

COMMERCIAL RECYCLING MANUFACTURER, FL, USA

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.

CONTRACT MACHINING & FABRICATION COMPANY, CA, USA

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.

WHAT EQUIPMENT CAN YOU REFINANCE WITH eCAPITAL?

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:

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    TRACTOR TRAILERS

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    MANUFACTURING EQUIPMENT

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    INDUSTRIAL EQUIPMENT

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    HEALTHCARE EQUIPMENT

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    SEMI-TRAILER TRUCKS

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    HEAVY EQUIPMENT

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    CNC EQUIPMENT

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    OIL & GAS EQUIPMENT

various forms of industrial equipment

WHY CHOOSE US AS YOUR EQUIPMENT REFINANCING PARTNER?

eCapital is an industry-leader in the equipment refinancing space. Here are a few reasons why businesses choose eCapital as their equipment refinancing partner:

Better Value

We offer the highest asset valuations at competitive Annual Percentage Rates (APR).

Maximum Valuations

We provide industry-leading valuations on equipment with up to 75% Net Orderly Liquidation Value (NOLV).

Fast & Easy Application

Applications are received, reviewed, and qualified within days and we pride ourselves on quick, easy & honest service.

Industry Expertise

Due to our extensive years of experience in 80+ industries, we’re able to quickly provide your business with a tailor-made solution.

Unparalleled Management

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.

Fewer Restrictions

Due to our experience, we offer fewer restrictions than the banks, no reporting requirements, and limited loan covenants.

Talk to an Expert

DON’T JUST TAKE OUR WORD FOR IT

For over 25 years, eCapital, an alternative finance & factoring company, 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!

LEARN MORE ABOUT EQUIPMENT REFINANCING

Jumpstart Your Truck Fleet’s Turnaround Strategy with Equipment Refinancing

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Maximize Your Truck Fleet’s Access to Working Capital with Equipment Refinancing

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FREQUENTLY ASKED QUESTIONS

How does Equipment Refinancing work?

Here’s how equipment refinancing typically works:

  1. Identify your current assets: The first step in equipment refinancing is to identify your current equipment that you’d like to refinance and gather all important information regarding those assets (i.e Year, Make, Model, Condition, etc.).
  2. Determine the value of your assets: Next, you’ll need to work with eCapital to determine the Net Orderly Liquidation Value (NOLV) of the equipment you’d like to refinance.
  3. Get your assets approved: If your application is approved, eCapital will provide you with a term loan of up to 75% of the NOLV of your equipment.
  4. Make payments: You’ll then make payments to eCapital based on the terms of the new loan. This may include a lower interest rate, longer repayment period, or other benefits that improve your cash flow and help you manage your equipment refinancing more effectively.

What's the difference between Equipment Refinancing and Equipment Financing?

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.

How fast are Equipment Refinancing inquiries reviewed by eCapital?

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.

What are the covenants for Equipment Refinancing?

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:

  • Maintaining a certain debt to equity ratio
  • Maintaining a certain interest coverage ratio
  • Maintaining a certain level of cash flow
  • Maintaining a minimum level of earnings before interest, tax, and depreciation (EBITD)
  • Maintaining a minimum level of earnings before interest and tax (EBIT)
  • Maintaining a certain level of operating expenses

Instead, at eCapital the following points outline the requirements necessary for an Equipment Refinancing facility:

  • No financial covenants
  • Appraisal of assets every two years
  • No borrowing base (the provided annual insurance certificate is sufficient for asset monitoring)
  • Equipment Refinancing at eCapital is a standard term loan agreement with representations and warranties. We require our customers’ to state they represent the following:
    • “We have insurance”
    • “We’ve paid all our payroll tax”
    • “We’re in compliance with the law.”

What type of loan is Equipment Refinancing?

Equipment Refinancing from eCapital is provided as a Term Loan with a specified repayment schedule and a fixed or floating interest rate.

What is the interest rate on an Equipment Refinancing Loan?

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.

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