Equipment financing

February 22, 2024

by a searcher in Chicago, IL, USA

I am looking at a business which has $5,000,000 worth of equipment.

I'd like to get a loan against the assets as part of the deal I am negotiating. I'm wondering what kind of loan terms I could get against the equipment including LTV, interest and amortization?

0 Likes

3 Replies

29 Views

Replies

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Happy to have a discussion and see if we can be of any assistance. A few things up front though. Any lender is likely going to do an equipment appraisal. That appraisal will provide three values: 1) The Market Value which is what that equipment is trading at today under normal market conditions; 2) An Orderly Liquidation Value, which is the value a lender would get doing a normal liquidation of the collateral; and 3) A Forced Liquidation Value, which is the value a lender would get if they just sold it all in bulk quickly. Most lenders are going to use the Orderly Liquidation Value for determining the collateral value and are then going to lend 75 to 80% against this value. Depending on the type of equipment you are likely looking at between 3 and 7 year loan terms. Depending on the type of lender and credit profile, you could be looking at an interest rate in the 7 to 8% range all the way up into the teens.

I hope this information helps. We are a Commercial Loan Brokerage Shop with over 500 funding partners and plenty of equipment lenders. We would be more than happy to discuss this opportunity with you. You can reach me at redacted Good luck.

Reply by a professional
from University of Houston in Houston, Texas 77002, États-Unis

I may have a couple of contacts to point you to. Feel free to reach out. redacted

+1 more reply.

Join the discussion