This product is similar to a revolving credit facility in which the borrower pays a commitment fee to borrow money and is then allowed to use the funds when needed without having to reapply and be re-evaluated. In a revolving equipment loan, the lender uses a borrowing-base formula based on the value of the equipment to determine the maximum loan amount that can be periodically drawn by the borrower. (Borrowing base is the amount of money a lender will loan to a company based on the value of the collateral the company pledges.) This financing instrument can only be used with existing equipment.

The borrower can choose to draw funds to meet working capital or capital expenditure needs. The borrowing base is typically recalculated monthly and at the time of each advance. Revolving credit is intended for shorter-term and smaller loans.

The array of equipment financing options can feel overwhelming. But that’s what we’re here for. We’ll help you learn what options are available to you, and customize a solution that fits your needs, answering all your questions along the way.