Equipment Financing Exit Strategies
Posted on April 12th, 2010 by admin
The key to being able to secure equipment financing for more challenging financial and credit profiles is the potential exit strategies available to any lender that is considering funding the deal.
The more likely and predictable an exit strategy is in terms of both timing and amount that a lender can expect to receive, the more likely financing can be arranged.
The alternative is also true when there are not a lot of predictable liquidation options available to the lending source.
The amount of financing provided will also be based on the liquidation value of the asset, determining the amount of financing that can actually be provided.