Having aircraft financing needs?  AmRock Financial can help you soar to new heights if you are considering buying an       aircraft for your business, one possible way to get financing  is with an equipment loan.

Are you ready for take-off? Here are the top 7 tips to keep in mind when applying for aircraft financing:

1. Credit Score and Financial History

Lenders will consider your credit score and financial history when determining whether to approve you for financing. It’s important to have a strong credit score and a history of responsible financial management to increase your chances of approval.

2. Type of Aircraft

The type of aircraft you want to finance can impact the terms and conditions of your loan. Generally, lenders prefer to finance new or nearly new aircraft, as they offer less risk of mechanical issues and depreciation.

3. Collateral

The aircraft itself will usually serve as collateral for the loan. You may need to provide additional collateral, such as a personal guarantee or a lien on other assets.

4. Down Payment

Lenders may require a down payment of 10-20% of the aircraft’s purchase price. A larger down payment can reduce your monthly payments and improve your chances of approval.

5. Terms and Conditions

Be sure to carefully review the terms and conditions of the loan, including interest rates, fees, and repayment schedules. Consider working with a financial advisor to help you understand the details and negotiate the best terms possible.

6. Maintenance and Insurance

Lenders may require you to carry certain levels of maintenance and liability insurance on the aircraft to protect their investment.

7. Lender Requirements

Different lenders may have different requirements for aircraft financing. Consider shopping around to find the lender that best fits your needs.

Overall, aircraft financing can be a complex process, and it’s important to do your research and work with knowledgeable professionals to ensure that you make informed decisions and secure the funding you need.

For businesses seeking financing solutions, equipment financing can serve as a powerful tool to secure much-needed capital. Beyond its primary purpose of acquiring or upgrading equipment, this financing option can also be utilized as an asset-based loan.

By leveraging the value of their equipment, borrowers can tap into additional funds, enhance cash flow, and fuel growth. In this blog post, we will explore how borrowers can effectively use equipment financing as an asset-based loan to secure financing and propel their business forward.

Equipment financing typically involves a lender providing funds for the purchase or lease of specific equipment. The equipment itself serves as collateral, giving the lender security in case of default. However, borrowers can also utilize this collateral value to secure additional financing beyond the equipment’s cost.

Here’s how:

1. Assessing Equipment Value: To leverage equipment financing as an asset-based loan, borrowers must evaluate the value of their existing equipment. Lenders will always choose their own third-party appraiser. Conducting a thorough appraisal can help determine the fair market value of the assets. This evaluation will serve as a basis for securing additional funds.

2. Collateral-Based Loan: With the appraisal in hand, borrowers can approach lenders to negotiate an asset-based loan. In this scenario, the equipment itself serves as collateral, minimizing the lender’s risk. By pledging the equipment’s value, borrowers can access capital that is typically aligned with a certain percentage of the equipment’s appraised worth.

3. Enhanced Cash Flow and Capital: Once approved, borrowers receive additional financing based on the agreed-upon loan amount. This injection of capital can be used for various purposes, such as expanding operations, funding marketing initiatives, hiring new employees, or even refinancing existing debt. By freeing up cash flow, businesses can seize growth opportunities and strengthen their financial position and balance sheets.

4. Repayment and Terms: Just like standard equipment financing, asset-based loans have repayment terms and interest rates. These terms are negotiated between the borrower and the lender and should be carefully reviewed. It is crucial to assess the loan’s impact on cash flow and ensure that the business can meet the repayment obligations without hampering daily operations.

5. Potential Risks and Benefits: As with any financial arrangement, risks and benefits are associated with leveraging equipment financing as an asset-based loan. The primary benefit lies in the ability to access additional capital without exhausting other financing avenues or depleting cash reserves. This funding can catalyze business growth and provide flexibility in managing working capital needs.

However, it’s essential to consider the risks of defaulting on loan payments and the potential loss of valuable equipment. Proper risk assessment and strategic planning are necessary to mitigate these risks effectively.

In summary, equipment financing is not limited to solely acquiring assets; it can be a gateway to secure additional funding. By leveraging the value of existing equipment, borrowers can tap into capital through asset-based loans. This approach empowers businesses to expand, innovate, and strengthen their operations. However, it is crucial to conduct thorough evaluations, negotiate favorable terms, and consider the associated risks before embarking on this financing journey. With careful planning and prudent decision-making, equipment financing as an asset-based loan can be a valuable tool to propel businesses toward their growth goals.

Working with AmRock Financial can be a good option for finding a variety of financing options. With a marketplace of 1600+ prescreen lenders, businesses can compare rates and terms and potentially find a loan that fits their specific needs and financial situation. Our process can make it easier and faster for a business to have access to capital, as we do all the underwriting and find the best lending options.

You pay nothing if we are unable to get you funded. We only charge a success fee after you get funded, so our services are FREE until we succeed.

Call us today at 305-440-8480 or email us at applications@amrockfinancial.com

AmRock Financial Helps Staffing Company Receive a $5 Million Loan

MIAMI- Small and mid-sized businesses are struggling to keep their doors open due to the effects of the global pandemic. Business owners have been flocking to banks to obtain whatever loan they can get their hands. Unfortunately, banks have restricted lending, making the searching process difficult for small business owners.

One of Miami’s leading financial firms, AmRock Financial, has seen an influx of small business owners who are ready to close their doors and file for bankruptcy. Since 2007, AmRock has provided more than $1 Billion in financing to small and mid-sized businesses. It has recently expanded its team to help its growing number of clientele obtain the funding they need to succeed. AmRock Financial does not charge small business owners any upfront fees, only modest success fees based on performance, and uses its network of over 1,500 lenders to match debtors to the right lender.

A local staffing company that provides industrial and administrative positions in the logistics and warehousing space, applied for a loan at a local Bank, months later the loan was eventually denied.  A common manifestation of what happens in our banking system nationwide. The banker recommended AmRock Financial and referred the business owner to us. AmRock met with the owner and after listening to his short- and long-term goals, structured a $5 million, 10-year term loan with another Community Bank, which is one of 1,500 verified banks in the AmRock Financials network. The company paid off  $4 million of existing debt and  received an addition $1 million in working capital.

Obtaining a bank loan should be easy in America but all too often, the process is filled with uncertainty, frustration, and distrust. Having a skilled commercial loan advisor/broker like AmRock can be a valuable asset.

Founder and CEO Frank Tomasino says “In 2007, when we began, we had no lenders, no relationships and the economy was deteriorating and eventually it collapsed in 2008. Banks collapsed and most were bailed out by the government, the economy descended into an abyss, but we knew eventually new lenders would need to start lending. This is similar to what we are seeing now with the global pandemic. We know that certain community banks are now lending but finding a local bank could be a challenge. AmRock has found that your perfect bank might be located in an entirely different state as the landscape has changed.

Since the beginning of the pandemic, AmRock Financial has helped hundreds of domestic and international businesses keep their doors open, this staffing company is just one of many. The AmRock team is hoping to help as many more as possible.

In this new Spotlight series by AmRock Financial, we will            explore all the debt financing options that are available to your company.

In this first Spotlight, we focus on why an Asset Based Loan (ABL) could be the right funding option for your company so you don’t ever have to worry about giving up equity in your business.

ABL is a form of financing that involves borrowing against the value of a company’s assets. These assets may include inventory, equipment, accounts receivable, or real estate. In an asset based loan, the lender or bank assesses the value of the assets and then offers a line of credit or a term loan based on that value.

There are several reasons why companies should consider asset based loans as a source of financing:

Firstly, an asset based loan can provide companies with access to larger amounts of funding than traditional loans. This is because the loan is secured against assets, which reduces the lender’s risk. As a result, companies can typically borrow more money through an asset-based loan than they could through an unsecured loan. This can be particularly beneficial for companies that need to finance large projects or make significant investments in growing their business.

Secondly, an asset based loan can be more flexible than traditional loans. This is because the loan is secured against assets, rather than being based solely on a company’s creditworthiness. As a result, companies with weaker credit profiles may still be able to obtain funding. Additionally, the terms of the loan can often be tailored to suit the company’s needs. For example, the repayment schedule may be adjusted to match the company’s cash flow, or the loan may be structured to allow for seasonal fluctuations in revenue.

Thirdly, asset-based loans can be obtained more quickly than traditional loans. This is because the lender is primarily focused on the value of the assets, rather than on a lengthy credit review process. This can be particularly important in situations where a company needs funding quickly in order to take advantage of a business opportunity or to address a pressing financial need.

Finally, asset based loans can be a good option for companies that are growing rapidly or undergoing significant changes. This is because the value of the assets is likely to increase over time, which means that the amount of funding available through an asset-based loan may also increase. An added benefit to consider as the company’s financial profile improves, it may also become eligible for more favorable loan terms or lower interest rates.