Topic: Credit / Working Capital Management
Hello; I am looking for recommendations for Equipment Financing. We are looking for financing for a single project of about $1.5m and I would appreciate recommendations for equpiment financing companies in the Cleveland, OH Area.
Specialty Metals Processing
Subject: Re:Equipment Financing - Single project, Cleveland, OH
I just joined FENG and I'm excited to help you. I'm located in Houston.
I worked with Fifth Third for about 15 years to lease construction equipment. I worked with several salesmen, they were all good. I have a contact at Fifth Third Bank headquartered in Cincinnati. He's located in Dallas, but he can provide a local contact for you. I leased new cranes, bulldozers, and various types of "yellow iron". Some companies will lease used equipment as well. My operations people have always picked the equipment and the vendor first and then I arranged the leases.
You may need shorter terms, but the lease terms I did were typically 5 to 8 years with two early buyout dates "EBO's". I used this option to buy the equipment and resell it to avoid having continue leasing underutilized equipment. I could also return the equipment at the end of the lease with no return fees. These are things you'll typically have to ask for to meet your specific needs.
I also worked with Citizens Asset Finance and I can get a contact. I took bids from many others, I can also provide a few other names. There are some companies to stay away from.
Sometimes, the devil is in the details. I recommend being very specific up front about the terms you want, for example: the term you need, if you want EBO's, or no return fees, etc. Get them each to bid on your terms so you can make the bids applies to applies. This way you can really get the best deal for your company. Since this makes it easier to compare, you can have more time to get more bids.
Each bank or leasing company has their own "appetite" for types of equipment and types of customers. In general the rates they give you get are influenced by the credit strength of your company, the types of equipment you're leasing, and your ability to understand and negotiate.
You can also rent the equipment or sublease equipment from a company that has excess equipment on lease. I have contacts that may have excess construction equipment. Are you looking for manufacturing equipment? Is it common equipment?
Let me know if that's helpful and feel free to ask questions.