For many businesses, refinancing is often overlooked as a strategy. Companies typically experience a variety of highs and lows, but in these unprecedented times of increasingly volatile interest rates, refinancing can be more valuable than ever. By leveraging your equipment equity, refinancing can help you fund growth and navigate transitional periods.
At Ritchie Bros. Financial Services, we recognize the true value of equipment—especially used equipment—better than any financing institution. We assist business owners in accessing their equipment equity every day. If the market value of your assets exceeds the outstanding debt, you have equity in it that can benefit your business.
When can refinancing benefit you:
- Lower current payments – If your current loan or lease payments are eating up too much of your cash flow and you have equity in your equipment, refinancing the existing debt over a new, longer financing period can lower your payments.
- Obtaining cash back – If your equipment has enough equity, you can use it for a cash injection to meet your current business needs,from new equipment purchases and paying off debts to spurring new growth and meeting short-term working capital needs.
- Consolidating debts – If you have multiple loans, leases, and lines of credit with multiple lenders, it can make sense to consolidate those into one payment and streamline your accounts payable.
- Lower existing rates – If you have high-cost financing, it may make sense to refinance at a lower rate to save on interest.
- Exiting an existing lender – Most financing institutions are eager to lend when market conditions are positive but tend to tighten up when economic conditions are tougher. If there’s equity in your equipment, you can use it to pay existing lenders and transition to a new primary lending relationship.
- Purchasing or selling your business – If you’re looking to sell your business to someone or acquire an existing business, equipment refinancing can be used to facilitate the sale. The equity in the equipment/assets can be used to pay the seller for the sale of the business, while the new buyer receives a loan/lease backed by the company’s assets.
What sets Ritchie Bros. Financial Services apart? We offer a unique combination of strengths in equipment refinancing:
1) top-tier asset appraisals
2) access to multiple major national equipment lenders
3) a team of dedicated equipment financing experts who can customize financing solutions to meet your specific business needs. Contact us today to access your one-stop shop for equipment financing.
I’m to looking reduce dept and consolidate my equipment costs.