Manufacturing Blog

3 Reasons Why Manufacturers Love Lease Lines of Credit

3 Reasons Why Manufacturers Love Lease Lines of Credit

7/11/2017

1. Simplify Implementation

Equipment upgrades and replacements are inevitable. Identifying potential financing partners, soliciting proposals, conducting due diligence, and analyzing financing terms for each and every project is too time-consuming. Instead, many manufacturers choose a lease line of credit to save time and simplify their process. A lease line of credit is a pre-approved credit facility that can be used to fund various projects over a period of time. They eliminate the need to conduct due diligence on every project. Make one decision on a lease line rather than many decisions for many projects.

2. One Fixed Payment

Rather than paying for capital equipment with a large initial capital investment and paying maintenance costs each year thereafter, a lease line allows manufacturers to finance the entire solution by bundling all project costs into one single, fixed monthly payment. Lease lines are typically set up for 12-18 months at a time and can be set up in advance of the project(s).

3. No Fees

A lease line gives you the freedom to use as much or as little as you need. With First American’s lease line product, you will never pay any under- or non-utilization fees. Your lease line will be there to cover any equipment, software, service, or build-out projects that you’re planning throughout the year. Learn more: www.faManufacturingFinance.com/leaseline

ABOUT FIRST AMERICAN MANUFACTURING FINANCE
First American Manufacturing Finance is a part of City National Bank. First American provides simple, innovative financing solutions for complex projects. First American specializes in combining products and services from multiple vendors and service providers into a single equipment lease. First American has a long-standing reputation for professionalism and exceptional service throughout the U.S.

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