Weak Debt to Equity Ratio? No Problem!
   
Recently,  a Midwestern-manufacturing firm approached us with a request to structure a lease for new and used equipment it needed to meet its increased production schedule brought about by a significant increase in customer orders.  The equipment it needed would cost $2,000,000, however, the firm was operating under loan covenant restrictions and had all but exhausted its line-of-credit from its primary banker.  The firm demonstrated profitability in each of the three years prior to its financing request and its balance sheet showed a net worth of $800,000.
    
Due to the size of the transaction when compared to the net worth of the company, we recognized that no one lender was willing to assume the risk.  By applying our industry knowledge and experience, we were able to structure an acceptable leasing package that would distribute the risk among three different lenders.  We chose an operating lease to best serve our customer in securing its much-needed equipment while providing the lenders with an acceptable level of risk.
    
By structuring an Operating Lease, we were able to help our customer work around its covenant restrictions while reducing the company's cash flow and accelerating its write-off as compared to conventional bank financing.  The accelerated write-off helped our customer minimize its tax liability when compared to conventional 7-year depreciation.
    
Insight gained through close working relationships with our customers and lenders has spawned some of our most innovative and favorable leasing arrangements.  While corporate financial circumstances vary and present complex problems consisting of many variables, not unusual in today's equipment financing and leasing environment, we can provide innovative, effective and highly favorable financing solutions.
    
Here at Midwest Leasing, we strive always to listen to the needs of our customers and respond with the best possible solutions while being sensitive to the credit concerns of our lenders.
 
Call us today!  We welcome the opportunity to provide expert solutions for your equipment financing needs.

Call Midwest Leasing at 800-203-8920 today!