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Unique Solutions to Common Credit Issues |
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Real-life situations in which Beacon's equipment financing programs have added value when traditional borrowing options may not be available.
by Beacon Funding | October 2009 |
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rom time to time, we encounter situations in which traditional financing options do not meet our business clients' needs. In these circumstances, Beacon's flexible equipment financing solutions may hold the answer. Here are some real-life situations in which Beacon's equipment financing programs have added value when traditional borrowing options may not be available.
On The Fence?
Are you delaying an important equipment purchase while waiting on a pending large order?
Issue: With equipment prices and the cost of money at all time lows; your business has the opportunity to take advantage of some great values. However, if your business is like most, you may be waiting to acquire the production equipment you need pending an anticipated or upcoming order? However, as our economy continues to improve and demand increases, the cost of equipment and financing will increase and those values will dissipate.
Solution: Commit to your new equipment now and avoid payment until such time your equipment is producing revenue. Combine Beacon's Forward-Payment-Lock and Buy Now, Pay Later programs and you have the perfect solution. Our Forward-Payment-Lock program allows you to lock-in your monthly payment now, with limited risk, even if you do not start your lease for a few months. Our Buy Now, Pay Later program allows your business acquire equipment today and make no payment until well after the revenue for your anticipated order is realized. To learn more about how our flexible leasing programs, contact your Beacon Funding financing consultant today.
Used Equipment
Issue: Used equipment is plentiful in today’s marketplace. For the right type of buyer, used equipment represents a great value. Unfortunately, many businesses cannot take advantage of these opportunities due to financing restrictions placed on used equipment by traditional lenders.
Solution: Beacon’s niche expertise and strong working knowledge of the equipment it finances make used equipment transactions a big part of our business. For experienced buyers, with the time and mechanical expertise necessary to deal with the typical used equipment “curve-ball”, Beacon has a wide variety of competitive financing programs that allow your business to acquire quality equipment from one to as much as15 years old.
Recent Losses
Are recent losses preventing you from securing traditional equipment financing?
Issue: Even our best clients have difficult years. Often, those clients that are growing the fastest have the most expenses and may show losses during a fiscal year. Many traditional lenders often have to tell a long-standing client that they cannot extend additional credit because a recent “hiccup” in their performance.
Solution: Beacon's $100,000 to $250,000 application-only programs are often the ideal solution. Beacon's application-only underwriting process does not rely on a company's historical financial performance. Rather, we look at alternative credit criteria such as time-in-business, corporate and personal pay history, collateral values, and bank and trade references to make a credit decision. So even if you think you will get a “no”, complete our one-page, no-cost, no-commitment lease application. Chances are Beacon will help your business get the equipment you need.
Cross Border Transaction
Looking to put new equipment in your Latin American production facility?
Issue: Many US-based businesses’ must add or upgrade production equipment in Latin American manufacturing facilities. Because the Uniform Commercial Code (UCC) system on which domestic banks and financing companies rely does not apply outside of the United States, traditional financing for Latin American equipment transactions is often unsuccessful.
Solution: Beacon's sale-leaseback on domestic equipment is an ideal solution. Step 1: Beacon purchases some/all of a businesses’ domestic equipment and leases it back to them over a 24-60 month term. Step 2: The proceeds from the sale-leaseback are used by the business to purchase new equipment that will be located in their Latin American facility(s). Because the Latin American equipment is “free and clear”, traditional UCC limitations do not affect the transaction.
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