With the great recession firmly in the rearview mirror for much of the economy, it’s easy to overlook a big issue with the current commercial lending environment. While capital has never been cheaper and easier to come by for stronger credit profiles, companies who don’t fit inside the typical bank box find themselves on a constant search for reasonably priced financing to help pay for equipment vital to their success.
These “unbankable” credit profiles often find themselves going bank to bank starting with a sales person who over-promises their ability to deliver only to go through the same fruitless review process over and over, getting the same turndown they received from the last bank. This can be an incredibly time consuming and frustrating process for companies trying to finance equipment as typically there is a specific time frame they need to get their deals funded to get the equipment installed on time to meet their customer demands.
Liberty Commercial Finance was formed with the vision of solving this issue. Our firm is disrupting the industry by bringing a risk based pricing to the market so rather than having to say no, they can (for the most part) say yes to every situation under pricing and structure commensurate to the credit and collateral risk.
That means that really strong credits get really good rates while distressed or turnaround situations will still get their deals done, albeit at a rate that fits the situation. We take the stress out of scrambling to find alternative financing options for your equipment finance needs.
Taking the stress out of having distressed credit
The constant tug and pull, the battle for credit approval will always be an issue for those approaching banks. When businesses grow, evolve or expand and they then require updated or new equipment, the hefty cost of investment and turnaround in these necessary situations can only be resolved by alternative equipment financing, providing the most flexible lease prices for distressed credit equipment financing.
In a recent Monitor Daily article, Linda Kester from the Institute of Personal Development dives into a crucial analysis of the credit versus sales department and each of their perceptions and the behavior that goes along with how people feel that their challenged credit subjects their transactions to a decision-making process. The lack of empathy and expertise in catering to borrowers is what attributes to the lead differentiator between banks and an independent equipment financing firms. Regardless if the challenge is credit, tough collateral financing, or structure related, Liberty Commercial Finance has the tools and equipment financing programs to solve any problem and provide the right solution for every situation.
“We have deep relationships with a network of private money and non-bank regulated funding sources, to get the more challenged deals done as well as local and commercial banks, specialty finance companies and insurance companies to ensure competitive rates for every credit profile.” -President Eric Freeman
Liberty offers a variety of lease solutions to meet your business needs:
- Operating Leases (FMV) – This structure allows you to spread out the cost of equipment over time, but also eliminates obligation to own the equipment at the end of the lease
- First Amendment Leases – This financing structure is a capital lease under GAAP but still qualifies as a tax lease under IRS guidelines
- Capital Leases ($1.00 Purchase/P.U.T.) – This lease structure functions like a purchase, but gives you the chance to spread out the cost of your equipment over several years, allowing your company to hold onto its cash
- Synthetic Leases – This lease structure allows you to spread out the cost of equipment over time, keeping the total cost of expensive equipment off your balance sheet while also giving you depreciation tax beneﬁts
- Sale Leaseback Facilities and Refinancing of Used Equipment – This structure enables a company to reduce its investment in non-core assets and liberate cash in exchange for executing a lease and paying rent
- Equipment Lines of Credit for Multiple Assets and Multiple Take Downs – This structure enables a company to acquire multiple pieces of equipment at rates that are typically only available for large purchases, and without having to go through an approval process for each piece of equipment
About Liberty Commercial Finance
Liberty Commercial Finance is a provider of equipment financing throughout the US and Canada backed by a leading alternative investment management firm with over $16.5B invested over the past 20+ years and $1.3B under management today. The company was founded with the vision to bring risk based pricing to middle market and Fortune 500 companies with the financial strength of a large balance sheet and the service of a boutique finance company.