When a multi-location metallurgic and heat-treating company needed working capital fast to turn around the business, Loeb delivered an equipment-financing solution through an asset-based loan secured by industrial equipment.
Read on to see how equipment-backed lending can help manufacturers unlock liquidity and stabilize operations quickly.
The Challenge: Existing Debt Blocking Access to Equipment Financing
Time was of the essence for the Midwest-based metal processing company with multiple locations in Wisconsin and Illinois. However, an existing line of credit with another lender was creating a roadblock. While much of the underwriting had been done in prior attempts, the outstanding line prevented Loeb from moving forward with a new equipment-backed loan.
To clear the way, the company sold one location and some of its equipment to pay off the existing line.
Why choose Loeb for Equipment Financing?
Loeb was chosen because of our expertise and long-standing reputation as an asset-based lender for manufacturers.
This actually marked the third time the company approached Loeb for an equipment-backed loan. Because much of the underwriting had already progressed, Loeb was able to move quickly to secure the funding once the company’s previous debt had been resolved.
The Solution: $1.2 Million Equipment-Backed Loan
Loeb structured an asset-based loan secured by industrial equipment allowing the company to unlock capital that was tied up in equipment across their Illinois and Wisconsin locations.
With equipment appraisal already underway and just a few missing pieces of underwriting needed, Loeb was able to provide $1.2M in funding within a month.
The Outcome: Improved liquidity through Asset-Based Lending
Thanks to Loeb’s speed, flexibility, and disciplined underwriting, the metal processing company was able to get the working capital it needed to help them stabilize the business and enable them to focus on long-term growth.
For companies looking for industrial equipment financing or asset-based solutions, this project shows the value of working with a partner who understands the manufacturing industry and the speed at which access to working capital is needed.
What This Means for Manufacturers
Industrial equipment financing offers a powerful and easily accessible way to unlock capital without disrupting the company’s operations.
Unlike traditional lending, asset-based term loans allow businesses to:
- Access full funding on day one
- Leverage existing equipment and maintain ownership
- Keep operations moving without interruptions
- Maintain depreciation and tax benefits
- Avoid restrictive lender requirements
FAQ: Equipment Financing for Manufacturers
What is an equipment-backed loan?
An equipment-backed loan is a type of asset-based financing solution where industrial equipment is used as collateral to secure funding.
How does asset-based lending work?
Asset-based lending allows businesses to borrow against the value of their assets such as machinery, inventory, or receivables to access working capital.
How fast can equipment financing be secured?
Depending on underwriting and asset appraisal, equipment financing can often be completed in weeks rather than months.
Can manufacturing companies use equipment as collateral?
Yes. Many manufacturers use machinery and industrial equipment to secure working capital loans through asset-based lenders.
Looking for Equipment Financing?
If your manufacturing business needs working capital, Loeb has flexible asset-based lending solutions tailored to meet your needs.
Contact Loeb today to learn how you can unlock the value of your industrial equipment.
About Loeb
Since 1880, Loeb has been helping manufacturers and financial institutions leverage their industrial assets by managing the equipment lifecycle. Loeb monetizes industrial assets through financing, valuations, auctions, acquisitions, and sales.
For more information, visit https://www.loebequipment.com.
