EQUIPMENT FINANCING
Equipment Financing and Leasing
Razi Capital considers equipment financing transactions between $150,000 and up to $25,000,000. Terms range from two to ten years. Depending on the company’s needs the financing can be structured as an operating or a capital lease. We also offer sale-lease back for companies looking to unlock capital tied up in their equipment.
Master Lease Line of Credit: This is useful for companies that anticipate acquiring equipment at various points throughout the year. This is convenient, because the company goes through one round of due diligence and documentation, but can draw on the line at multiple times during the year.
Benefits: Historically, tax benefits have been one of the main reasons that companies have chosen to lease equipment. However, recent regulations and stimulus programs have undermined this benefit to many companies. In addition, many companies may not be in a position to fully take advantage of such tax benefits. With that said, there are many other considerations that make leasing an attractive option for a company’s equipment acquisition plans. Leasing can increase a company’s purchasing power, often covering 100 percent of the purchase price in addition to some or all of the related costs, including shipping, installation, training and other soft costs. Leasing also requires a minimum cash outlay upfront and stretches the payment term to match the useful life of most assets. Payment terms are often flexible and a company can choose to match the payment stream to seasonality or the growth of revenues from the use of the newly acquired equipment. Most of our leases do not have financial covenants, thus provide a flexible alternative to traditional bank financing. Lastly, leasing, when done right, can help financial managers, better account for the financial impact of such arrangements on the company’s financial statements. Therefore, it is not surprising that most companies in U.S. lease some or all of their equipment.
Target Profile
- Strong management team
- At least one round of equity financing
- Strong intellectual property
- Addressing a large market need
- Defined exit strategy
Industries
Software
Mobile and Wireless Technology
Pharmaceuticals
Medical Devices
Healthcare Services
Networking
Computer Hardware
Semiconductors
Alternative Energy
and More ...
With over 30 years of experience and expertise in equipment leasing and financing, Razi Capital has become one of the premiere companies in the industry. In fact, many of our client relationships have started with us closing an equipment financing transaction. We address equipment needs in most industries and for a variety of collateral.
Venture Leasing
Venture leasing is a great solution for companies that are looking to acquire equipment, but do not want to use cash or additional equity capital to invest in depreciating assets. Razi Capital offers a variety operating and capital lease structures to address either a one-time or multiple equipment transactions in a given year. An equipment financing line of credit is useful for companies that anticipate acquiring equipment at various points throughout the year. This is convenient, because the company goes through one round of due diligence and documentation, but can draw on the line at multiple times during the year.
As part of the venture leasing program, Razi capital can structure sale lease-back transactions for companies that have free and clear equipment assets. The proceeds from such financing can be used various purposes including, providing additional working capital, acquiring additional equipment, covering soft costs of a transaction, acquiring additional intangible assets, and more.
Razi Capital considers equipment financing transactions between $150,000 and $10,000,000. The transaction can be structured with or without warrants. The terms usually range from 24 to 36 months, but longer terms may be considered for certain asset types. The financing is secured by a specific lien on the collateral. We consider equipment located in U.S., Canada, Latin and South America, and many other parts of the world.