Equipment is the backbone of businesses across all manufacturing industries. Obtaining the equipment necessary to make your business profitable and productive is time consuming and expensive. You want the right equipment for the job and you also need to consider whether you should purchase or finance it.
LeaseQ is a marketplace for equipment financing, using a platform the company developed and customized for equipment sellers. This also helps manufacturers, particularly those in the packaging industry, find the best financing options for their equipment needs. “Purchasing equipment out of pocket is expensive,” said Vernon Tirey, CEO of LeaseQ. “The significant upfront cost of a filling, bagging, wrapping or labeling system can have a severe, negative effect on cash flow, particularly for food packaging companies in early growth stages or those looking to expand. Equipment financing allows these businesses to preserve cash for strategic investment or a rainy day, while securing the latest and greatest equipment they need to get the job done efficiently.”
Tirey pointed out to PlasticsToday that in the 1990s it was more difficult to finance machinery. “In the commercial equipment world, financing equipment was very painful,” he said. “There were a lot of hoops to jump through and there was no automated underwriting in place. We’ve created the technology and infrastructure to allow the seller to make it easy and cost-effective to finance that equipment for a wide range of buyers, including all credit classes from A+ to D and even startup companies.”
LeaseQ provides a technical platform that matches buyers, equipment sellers and lenders. A marketplace typically matches buyers and sellers, but LeaseQ takes the process from the typical two-party transaction to a three-party transaction.
There are three fundamental problems in the equipment financing world, said Tirey. The first is the lengthy and painful process of shopping for competitive equipment financing, which includes loans and leases. “We make it easy and fast for someone needing equipment financing to submit one application and see the best options for loans and leases,” he explained. “We provide instant quotes for monthly payments with terms from 24 to 60 months. The borrower sees who the lender is and compares information. Best of all you don’t have to talk to a sales rep, and it’s all available at no cost.”
Second, if you’re selling packaging equipment or injection molding machines, you have a variety of customers from startups to large purchasers, those with good credit and those with less credit worthiness. “No single lender will handle all dollar amounts or all types of equipment and all levels of credit worthiness,” said Tirey. “There are different types of equipment in different types of industries, and lenders need help in servicing these various requirements. We take that problem away from the equipment seller and put together a team of lenders that meet the sellers’ unique needs.”
The third problem is removing the difficulty involved in financing and making it as easy as financing a car. “We’re trying to automate the process of equipment financing by working with lenders to help them automate the process at the front