Fixture Furniture and Equipment Financing

Most businesses will ask the vendors they are purchasing their new equipment or remodel furniture from for financing. Although these vendors are convenient to use, they generally are also a more expensive source for money. Fixture’s, Furniture and Equipment typically fall into a tenant improvement or remodel budget for most businesses. In many cases traditional bank lenders struggle to provide financing for this line item due to the rapid depreciation and poor liquidation value of the collateral. It is even more difficult for businesses that do not own their own real estate but lease their location.

A couple of “band-aid” solutions to finance fixture’s, furniture and equipment are SBA loans and leasing sources. In many cases these sources will be more aggressive in their efforts to put together a deal. The SBA is motivated by economic development and fee income. Leasing companies tend to be more comfortable with the collateral assets than traditional banks lenders.  Each product has advantages and disadvantages to the business owner. Give us a call to discuss your scenario.

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