Syndicate Mortgages – Equipment Leasing & Financing and Asset-Based Lending Program
Equipment Leasing & Financing
You can purchase equipment through various equipment leasing and financing programs. At Syndicate we believe in helping our clients make well-informed decisions whether they’re related to vendor financing, inventory financing or factoring.
So do you qualify for equipment leasing & financing? Read on for the traditional and non-traditional credit criteria. These pertain to general vendor financing, inventory financing and factoring.
Traditional Credit Criteria
- 3 or more years in business.
- Good balance sheet ratios.
- Positive tangible net worth.
- Positive cash flow.
- Clean credit bureau.
- Usually 2 years or more in business.
- Profitable operations without unexplained negative trends.
- Adequate cash flow servicing existing and proposed debt.
- High leverage if strong cash flow.
- Personal guarantees.
- Structured transaction including additional collateral.
- Fixed payment equipment installment notes.
- Complete payout finance “Capital” lease with purchase option.
- True operating leases.
Non-Traditional Credit Criteria
Terms & Amortization
Up to 72 months, depending on collateral and credit strength of obligor. Longer tenure possible if additional collateral is pledged.
Collateral refers to hard assets such as machinery, computer systems, office equipment, aircraft, manufacturing equipment. Any tangible asset, which can be touched, can be used as collateral for securing the loan.
Sale-leaseback transactions require an established repayment source as well as strong collateral. Transaction size ranges from $50,000 to $3,000,000 ($3 million). Typically the maximum loan-to-value (LTV) is 80% of the equipment’s liquidation value. Moreover, the equipment must have a long useful life and strong remarketing ability. Proceeds can be used to pay off a specific lender, as working capital, to payout a partner, upgrade assets, or buy-back of capital stock.
Debt restructuring ranges from refinancing one piece of equipment to “full-facility” investment. This covers inventory loans, term loans and revolving lines of credit. Debt restructuring is a very practical move if you are looking to refinance your existing debts. Benefits include better working capital, cash flow, and reduced debt service. Moreover, we offer off balance sheet lending and tax oriented leases.
Revolving Lines of Credit
Revolving lines of credit are secured by a first lien security interest on all the borrower’s outstanding accounts receivables and in some cases inventory. Starting at $25,000.00, the upper limit is $2,500,000.00. ($2.5 million)
What Banks Offer
If you don’t qualify for conventional types of financing, you can use factoring as a solution. In factoring, the bank will lend you 70% of your receivables, for a maximum period of 60 days, and usually not from USA or any other part of the world.
What Syndicate Offers
Syndicate offers a much better factoring solution than banks. Through our factoring we lend you anywhere between 75% and 90% of the invoice, for a period up to 120 days. What’s more, we will lend on accounts from almost anywhere in the world.
While equipment leasing and factoring is in great demand, many businesses don’t go for this valuable financing option, mostly because they don’t fully understand how factoring works. We recommend that you read on to quickly acquaint yourself with how equipment leasing and factoring work. This valuable information will help you identify and make the most of lucrative leasing and factoring deals.
Commercial and Corporate Equipment Leasing
Equipment leasing is a $5 Billion industry in Canada alone. You can use leasing to finance equipment worth $10,000 to $3 million, over a period of 1 to 10 years. Leasing offers tax benefits, fixed payments throughout the term. Unlike bank lines of credit, they don’t have to be reviewed annually. You can enjoy the benefits of equipment leasing without upsetting existing lines of credit. Moreover, since you can purchase the most suitable equipment for your needs, you can expand your business through asset acquisition.
Factoring Accounts Receivables
To reiterate, factoring is a financing solution you can use when banks don’t consider you credit worthy for traditional financing. You can use factoring as frequently or rarely as determined by your accounts receivables. We offer twice the factoring term (120 days) higher factoring percentage (up to 90%), and accept international accounts receivables. You can also find the perfect use for our factoring solution if you are a startup company.
In Vendor financing the borrower acquires a loan in the form of the vendor’s products/equipment. The vendor usually takes a share in the borrower’s business/company. Syndicate helps you make the most of the benefits of vendor financing.
Vendor financing makes equipment more affordable for you. Vendor financing also improves your cash flow. Other benefits of vendor financing include:
- Ability to obtain multiple equipment types and best technology for your business.
- Ability to upgrade any and as many times during the term.
- Utilize white labeling to enhance your brand.
We will design a vendor financing package geared towards your specific industry. We specialize in developing offering customized vendor financing for the computer industry, medical industry, security industry, and machine tool industry.
With inventory financing you can purchase products for sale. These products will serve as collateral for the loan. Inventory financing is the perfect solution especially if you have to pay your creditors/suppliers sooner than the time it usually takes to sell your products.
Our inventory financing provides you a loan against inventory up to 60% based on the type of asset, location, and financial condition of your business. This normally ties in with factoring. Referring agents are paid on each drawdown. Inventory financing is particularly useful in high turnover seasons such as the holidays, enabling you to maximize your sales volume. With Syndicate’s inventory financing you can enjoy these seasonal fluctuations to the fullest.
Purchase Order Financing
Our purchase order financing helps you achieve sustainable growth as you experience rapid business expansion and need to make large payments to suppliers. We provide up to 50% of the cost of supplies to help you manage the payments associated with growth. The purchase order financing also dovetails with factoring the invoices generated once the service has been performed.
Our Credit Criteria
Syndicate’s goal is to help businesses with financing solutions at the right time, whether it’s through vendor financing, inventory financing or factoring. This commitment is reflected in our credit criteria:
- We lend to start-ups that can show a strong business plan.
- We provide factoring, and vendor and inventory financing in turn-around situations.
- We lend to companies that are in receivership.
- We lend to companies that have little or no net worth but have accounts receivable less than 90 days old from credit-worthy companies.
Call 1 (888) 646-1062 to talk to our representatives and learn more about our factoring, vendor financing and inventory financing programs.