Equipment Line of Credit provided fixed rate financing for over $7MM in yellow iron plus additional $1.8 MM for soft costs – fully utilized within first year.
The client approached Regents as an additional resource to compliment their existing banking group; with the intent to acquire much needed equipment at competitive rates without violating their bank covenants and to improve their leverage ratios. In addition, the Master approval needed to have quick funding capabilities, no prepayment penalties, and varying lease structures within each schedule to best service their changing financial needs and market conditions.
As a result of utilizing Regents’ Equipment Line of Credit, the client was able to draw down only as needed to increase equipment inventory depending on customer demand. By carefully managing cash flow and deducting operating expenses through leasing, the client has sufficient liquidity to weather macroeconomic downturns within the energy related industries and anticipates increase utilization in most classes of rental assets.