Equipment Financing

Leverage Assets to Facilitate Immediate Capital Access for Growth

Have questions about your approval odds? Book a financing call here.

Equipment Financing defined

Equipment is a critical element for many companies, many industries and the US economy as a whole. From a manufacturing company that needs computerized precision machines, to logistics companies that need trucks, or earth moving equipment for a farmer all need some kind of equipment.

But this equipment is expensive and a growing enterprise may need multiple units at the same time. Some equipment has been used, but may have many more years to perform. Some equipment has to be new because technology or requirements changed. Many, if not all, companies borrow money to buy equipment.

Financing helps them spread the cost of acquiring the equipment over the lifespan of equipment. However, not all lenders provide financing for used equipment or are willing to refinance existing equipment. Acquiring equipment or refinancing your existing debt requires careful consideration and you may have several options to choose from.

Equipment Financing options:

Unlike Inventory Financing, Equipment Financing is offered by a larger number of lenders. However, much like Inventory Financing, the odds of loan approval are low, and to improve your odds, rates or deal structures you should talk to us.

Do you want to buy new equipment?

As your operations grow, you may want to add equipment to increase your production capacity. Alternatively, your existing equipment may be getting old and worn out. It may have to be replaced with newer, more efficient equipment.

Do you need to refinance your existing loan?

If you currently possess high-value equipment that appraises favorably, you might find refinancing your existing equipment loan as the best option to proceed. Lenders who offer Equipment Financing refinance, typically looking to lend from $500k to $5 million range.

Here’s where we can help:

YDS has a good deal of experience working with Equipment Financing partners. And since traditional alternative lenders may not be as open about your company’s current status, we can help you with institutional knowledge that can improve your chance of approval.

How do we get started?

FAQ

Which lender will I be working with?

It depends on a number of factors, such as the financial condition of your company, dollar amount needed and type of collateral used.

How much money can my company borrow?

We have lenders that provide financing from a hundred thousand to ten million dollars.

What will happen to the fees I pay if I get turned down by the YDS lenders?

In order to avoid surprises, we recommend working with our consultants and experts before you apply for a loan. Our vetted consultants can spot trouble and help you improve your chances of getting approved.

What is the process to get a loan?

During your initial consultation or when you fill in the required documents, your company's needs are outlined.
YDS will help you determine which lender, what structure and a range of dollars you can qualify for.

How are the lenders determining if I qualify for a loan?

Lenders go through an extensive process of verifying the value of collateral, borrowers ability to repay the loans and owners background. Sometimes the lenders hire external experts to conduct appraisals or review documents.
The lender will also look at the economic conditions and their internal process to make a final determination.

Are there any costs associated with this process?

Use of external experts, like an appraiser or an attorney, are necessary to complete many transactions. Those professionals do charge fees for supporting the funding transactions. Those costs are disclosed upfront and can be controlled by the borrower.

What documents am I going to have to provide?

To get funding, lenders require a certain set of documents. In general, all lenders ask for

2 or 3 years of business income tax returns
2 or 3 years of internal financial statements such as balance sheet, income statement and cash flow statements.
Information about the business owners
Information about the collateral provided
Information about the use of capital
Forecast for the next 2 years.

Each lender and each borrower is unique and so a company specific document set may vary.
We’ve created a data room where standard required documents can be stored ahead of time. We recommend that you prepare all required documents in advance. These documents are yours and only you can make them available to anyone else.

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