Equipment Lending And Purchasing And How VFI Can Provide You With The Best Options

Equipment financing, also known as equipment lending and purchasing, allows businesses to acquire the equipment they need to run their operations without paying for it upfront. Equipment financing plays a pivotal role in the commercial lending landscape, enabling businesses to acquire, lease, or upgrade essential equipment to remain competitive and fuel growth. Investment-grade rated commercial finance lenders like VFI that reputable financial institutions back serve as crucial players in this domain by offering tailored financing solutions, competitive rates, and expert guidance to borrowers, thereby contributing significantly to the overall development and progress of the industry. Let us explore the importance of equipment financing and how VFI can provide businesses with the best options for their equipment financing needs.

Why Choose VFI?

VFI is a bank-backed, investment-grade commercial finance company rated by a Nationally Recognized Statistical Rating Organization (NRSRO) that offers direct lending structures for middle-market to Fortune 500 companies. With decades of expertise in the industry, we offer numerous benefits to businesses seeking equipment financing solutions. One of the most significant advantages is access to hundreds of millions of dollars in deployable capital, ready to offer the best terms for every project. This access to capital allows businesses to acquire the necessary equipment without straining their own financial resources or diluting their equity.

Our investment-grade status enables us to offer lower interest rates than non-investment-grade lenders. This can result in substantial cost savings for borrowers over the life of the loan. Furthermore, our expertise in equipment financing allows us to craft tailored solutions, taking into account each borrower’s specific needs and circumstances. This, coupled with our enhanced risk management capabilities, ensures that the financing arrangements are competitive, sustainable, and well-structured. 

VFI’s Equipment Financing Options

VFI offers various financing options to help businesses acquire the equipment they need. Below are two of VFI’s most popular equipment financing programs:

A. Sale and Leaseback Program

The Sale and Leaseback program is a financing option that allows businesses to sell their existing equipment to VFI and then lease it back. The company identifies the equipment they wish to sell and lease back in this program. VFI values the equipment and makes an offer based on the assets obtained. The company then sells the equipment to VFI and receives an immediate cash infusion. VFI takes ownership of the assets while the client maintains the use and operation of their equipment until the transaction is completed. The company then leases the equipment back from VFI and continues to use it.

Benefits of the Program

The Sale and Leaseback program offers several benefits to businesses. First, it provides an immediate cash infusion, which can be used to fund operations, invest in new projects, or pay off existing debt. Second,  free up valuable resources previously tied up in their equipment. By selling their equipment to VFI and leasing it back, businesses can use their resources to fund other areas of their operations. Third, Sale and Leaseback transactions provide greater financial flexibility, as they do not require businesses to take on additional debt or liquidate their assets.

Examples of Businesses that could Benefit from the Program

The Sale and Leaseback program is ideal for businesses with a large equipment inventory that is not being used to its full capacity. By leveraging their unencumbered assets, businesses can access the working capital they need without liquidating their assets or incurring additional debt. Examples of businesses that could benefit from this program include manufacturing, construction, and transportation companies.

B. Equipment Lease Line of Credit Program

The Equipment Lease Line of Credit program is a financing option that allows businesses to establish a credit line with VFI for equipment acquisitions. This designated credit line can be used to acquire new or used equipment from multiple vendors, allowing businesses to choose the equipment they need from the preferred vendor. Once the equipment is identified and selected, the company leases the equipment from VFI. This allows the company to conserve its cash reserves and use them for other areas of its operations. By leasing the equipment from VFI, the company can make affordable monthly payments over the term of the lease rather than paying a lump sum upfront.

Benefits of the Program

The Equipment Lease Line of Credit program offers several benefits to businesses. First, it allows businesses to acquire the necessary equipment without paying for it upfront, preserving their cash reserves. Second, businesses can choose the equipment they need from multiple vendors, providing greater flexibility in the equipment they acquire. Third, businesses can make affordable monthly payments over the term of the lease rather than paying a lump sum upfront.

Examples of Businesses that could Benefit from the Program

The Equipment Lease Line of Credit program is ideal for businesses that need to acquire equipment but want to conserve their cash reserves. Examples of businesses that could benefit from this program include healthcare facilities, hotels, and restaurants.

How to Get Started with VFI

The process is simple and straightforward if you want to explore equipment financing options with VFI. 

• Contact VFI to Learn More About Financing Options

The first step in obtaining equipment financing from VFI is to contact our team to learn more about our financing options. You can visit our website or call our customer service team.

• Discuss Specific Equipment Financing Needs with VFI

Once you’ve contacted, you’ll be connected with a VFI representative who can discuss your specific equipment financing needs. They’ll be able to explain the different financing options available and help you determine which option is best for your business.

• Apply for Financing and Get Approved

Once you’ve decided on a financing option, the next step is to apply for financing. The application process is straightforward and typically involves providing basic information about your business, financial statements, and the equipment you wish to finance. Once your application is submitted, a VFI representative will review it and determine if you’re approved for financing.

• Choose the Equipment and Vendor that Best Fits Your Needs

Once you’re approved for financing, you can choose the equipment and vendor that best fits your needs. VFI’s financing options are flexible, allowing you to choose from various vendors and equipment types.

• Lease the Equipment from VFI and Make Affordable Monthly Payments

Finally, once you’ve chosen your equipment and vendor, you’ll lease the equipment from VFI and make affordable monthly payments over the lease term. VFI’s financing options are designed to be flexible and affordable, allowing you to conserve your cash reserves and invest in other areas of your business.

Parting Thoughts

Equipment lending and purchasing are essential components of the commercial lending landscape, providing businesses with the necessary resources to meet their growth objectives. Investment-grade-rated commercial finance lenders like VFI play a significant role in this industry by offering access to capital, competitive interest rates, and customized financing solutions. As businesses continue to adapt and evolve in the face of changing market conditions and technological advancements, the importance of lenders like VFI in shaping the future of equipment financing cannot be overstated. By adhering to best practices and maintaining a strong focus on risk management, we remain at the forefront of the industry, supporting businesses in their pursuit of success and innovation. To know more, call us today at 866-731-8100 or email us!