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Need an Equipment Credit Line? Use Our Streamlined Process

December 29, 2023

When industrial business owners are ready for growth, they create strategic plans for pursuing new opportunities. But without the right equipment and machinery, it can be difficult to successfully execute those plans to achieve long-term growth.If your business needs larger or newer machinery and equipment, an equipment credit line may be the ideal solution. Learn about the advantages of choosing equipment financing, the types of companies that may benefit, and why Texas Gulf Bank is the ideal lending partner.

An Equipment Credit Line: How This Financing Option Works

An equipment line of credit is a great financing option for businesses throughout the Southeast Texas Gulf Coast region. It’s best suited for companies that need to purchase machinery or heavy equipment and want to avoid depleting their operating funds.

The line of credit provides borrowing businesses funding and allows the issuance of individual amortizing notes up to the bank approved amount.

Borrowing businesses are approved for a fixed credit limit, much like a credit card, and can use the funds at any time to purchase equipment or machinery, or pay for related expenses such as equipment maintenance or upgrades.

The Benefits of Equipment Loans

To take advantage of new growth opportunities or improve productivity, businesses need access to the latest technology and equipment. A reliable funding source may be able to help your business along the way.

An equipment line of credit has several distinct benefits, including the following advantages:

Improved Cash Flow

The need for new business equipment or upgraded machinery may be urgent, especially if your business is poised to expand operations or take on larger projects. Rather than using cash-on-hand or financial reserves, the decision to finance equipment purchases may be the best option.

For example, many seasonal businesses have lower revenue during slow periods of the year, but may also need to replace equipment and machinery in preparation for busier months ahead. They may be able to use a line of credit to make equipment purchases to maintain operations, meet production deadlines, and stay competitive in their market. 

Fund Flexibility

Equipment credit lines offer flexibility, both in how the funds may be used and when funds are disbursed. An equipment line of credit can be used on an as-needed basis for a variety of business needs, including:

This financing option gives businesses the freedom to use funds when they’re most needed, which can be vital for seasonal businesses such as agriculture or manufacturing companies. 

Streamlined Approval Process

Equipment credit lines can be an attractive financing option for businesses that need to quickly access funds. Because the equipment itself may be able to serve as collateral for the loan, this may help with simplifying the loan application process to advance to the approval stage.

Would Your Business Benefit from Equipment Credit Lines?

An equipment line of credit is a valuable financial tool because of its versatility and convenience, but it can be especially beneficial for certain businesses.

For instance, companies with a busy production schedule may need to quickly replace equipment and machinery to meet deadlines, or an office or lab may need to regularly upgrade to the latest technology for security or safety purposes.

Industries that may gain the most from choosing an equipment credit line include:

  • Manufacturing
  • Transportation
  • Construction
  • Warehouses
  • Supply chain logistics
  • Industrial
  • Medical facilities
  • Food and beverage production

With the help of equipment credit lines, your business may be able to use funds to purchase the latest technology and equipment needed to elevate your business to the next level. 

Enjoy A Streamlined Application Process with Texas Gulf Bank

The first step of applying for an equipment line of credit is completing an initial assessment to determine your qualifications and overall company health.

During the business review, we evaluate your business plans for the next 1-5 years to determine how the line of credit will be used for future equipment purchases and to facilitate growth. The ideal borrowers should meet the following qualifications:

  • Repayment ability for a line of credit and equipment purchases
  • Strategic business use for equipment and machinery purchases
  • Strong financial performance and profitability
  • Good business credit standing
  • Sufficient financial strength of all guarantors and owners
  • Solid corporate structure

As part of the application process, several key pieces of financial documentation will be required for review. We typically require the following documentation (not an exhaustive list):

  • Completed loan application
  • 3 years of business tax returns
  • 3 years of business balance sheets and income statements
  • Current YTD balance sheets and income statements with annual revenue
  • Documentation on equipment or machinery to be purchased
  • 3 years of personal income tax returns and financial statements for all loan guarantors

Once we receive all required documentation, your line of credit application will be reviewed by our in-house team to provide a lending decision. If approved, your equipment line of credit will be made available as soon as possible so you can begin to make necessary equipment purchases.

Speak to a Lender Today About an Equipment Credit Line

At Texas Gulf Bank, we have supported small businesses across the Southeast Texas Gulf Coast region for over 100 years. We provide strategic lending options, including offering equipment financing solutions. And we are committed to building long-term banking relationships that help your company flourish.

To learn more about applying for a business equipment credit line or to speak with a lender, call Texas Gulf Bank at 1-800-467-7216. You can also use our online contact form or visit one of our local banking centers to speak in person with a lender. We are ready to help your business.

All loans subject to credit approval.

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All Loans Subject to Credit Approval