[UPDATE: October 4, 2022]
Why Equipment Leasing?
Many companies that use cash or corporate revolvers to finance equipment purchases can benefit from an equipment finance / leasing product.
- Equipment leases can be added to a company’s current capital structure without expensive refinancing or amendments to existing debt.
- Since equipment loans or leases are secured by the equipment, there is no need
for additional collateral.
Benefits of Equipment Leasing
Greater Access to Capital
- Equipment leases can provide borrowers with additional access to capital and incremental leverage without costly amendments or having to upsize primary credit facilities.
Efficient Process with Speed and Certainty
- A shorter documentation process for lease agreements can result in significant legal cost savings.
- Lease agreements can be less onerous than traditional credit agreements.
- Additional equipment can be quickly funded under new schedules tied to an existing Master Lease Agreement.
Flexibility in Financing the Equipment Lifecycle
- A company can match an asset’s useful life more closely to the term of financing by utilizing an equipment loan or lease structure.
- Lease structures provide optionality to purchase, return, or renew equipment at
end of term.
Capital Structure Optimization
- Utilizing equipment leases preserves revolving credit facility availability and reduces risk of triggering liquidity or other covenants tied to revolver draws.
- Lease structures often provide advance rates as high as 100% of the equipment invoice cost.
- Funding capital investments using fixed rate financings, such as leases, allow for easier capital planning than utilizing floating rate credit facilities.
For more information, please contact info@atalayaleasing.com
This is not an investment recommendation or a solicitation to become a client of Atalaya. The information contained in this document is provided solely to help potential transaction counterparties evaluate what types of investments may be interesting to Atalaya. This information is intended solely for the person or entity to which it is provided. Any review, retransmission, dissemination, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. © Atalaya Capital Management LP. All Rights Reserved. As used herein, the term “Atalaya” refers to Atalaya Capital Management LP, together with its affiliates, subsidiaries and affiliated companies. Each affiliate and subsidiary of Atalaya is separately organized and none of these companies are responsible for the obligations of the others. Affiliated companies refers to companies that may be owned, in whole or in part, by investment funds managed by Atalaya.”
