Trailer & Reefer Units: $3.2 Million
84-Month Term wit 24 Percent Purchase Option
Split-Trac Lease with Walk-Away Provision
Featured Project: Off Balance Sheet Leases
Capital-Intensive Businesses Use Off-Balance Sheet Leases to Manage Bank Covenants
Client Situation: As a capital intensive business, this long-haul trucking company was determined to grow with their clients—the use of off balance sheet leases for additional asset acquisition while maintaining bank covenants.
EFFI Provided: In order to meet goals of their client, EFFI provided this trucking company long-term lease financing which did not affect the leverage ratios.
- When the primary banking relationship requires bank covenants, adding additional debt to the balance sheet may affect leverage ratios and impact compliance.
- 84-month TRAC leases and Split-TRAC leases for revenue generating equipment was the key to maintain low monthly payments and compliance with bank covenants.
- A true lease, with a Fair Market Value purchase option (FMV), allows the company to achieve rental status for the asset acquisition with most auditors and bankers.
Well Structured lease financing helps maintain bank covenants while acquiring additional revenue generating equipment: firstname.lastname@example.org
See other projects that we’ve funded successfully.
Transportation & Tilted Vehicles
Apple Campus Heavy-Haul Project: $4.5 Million
The largest contract of this heavy haul trucking company’s history came from Apple, Inc. The project required additional trailers and power units in order to prepare for growth in their business and meet promises to their new client...
Food & Beverage
BigBox Food Manufacturer: $11.5 Million
While the client had a concentration in revenue with their BigBox retailer (think Costco or Walmart), we relied on the management experience, long-time relationship with the major brand, and multiple-SKU offering. The facility included production equipment in a multi-faceted line, catwalks, HVAC, and even a packing line.
Construction and Demolition Project: $6.0 Million
When providing union and non-union labor for construction projects, a company must segregate its assets. For union jobs, these assets must not be leased from a non-union entity. Set up an internal startup for inter-company rentals to meet these critical regulations as a construction company. EFFI fulfilled the asset transfer and refinance to establish an internal startup rental company for this construction & demolition business owner.