• Capital Equipment Finance

    CIT Capital Equipment Finance provides equipment loans and leases for transactions ranging in size from $3 million to $100 million and more. We offer flexible terms of up to eight years, with advance rates tailored to the equipment and credit strength of the borrower. 

    Products & Services

    • New and used equipment loans and leases
    • Equipment refinancing arrangements
    • Sale-leaseback transactions
    • Senior term debt financing
    • Lease lines of credit for equipment capital expenditures
    • Cash flow loan structures
    • Asset-based revolving lines of credit

    Key Areas of Focus

    • Aerospace & Defense
    • Automotive
    • Construction 
    • Distribution 
    • Food, Beverage and Agriculture 
    • General Manufacturing 
    • Healthcare and Medical 
    • Island Marine
    • Machine tools 
    • Materials handling 
    • Media and Entertainment 
    • Metals 
    • Mining 
    • Packaging 
    • Plastics 
    • Printing 
    • Pulp & paper 
    • Supermarkets/convenience stores 
    • Textiles 
    • Trade & service 
    • Trucking & logistics 
    • Utilities
  • Capital Equipment Finance Advantages

    • Equipment acquisition financing or leasing allows companies to take possession of equipment quickly, while preserving working capital for other strategic purposes
    • With a secured loan, companies can take advantage of the equity in their existing equipment, or use newly-purchased equipment as collateral
    • A revolving line of credit enables companies to improve their cash flow and restructure their debt according to their current and future requirements
    • Certain lease structures can improve cash flow for companies by reducing their initial investment and monthly payments
    • Several structures help companies divest obsolescence risk, and provide flexibility to match equipment needs with business cycles
    • Businesses can match terms of funding with useful life of equipment
    • Companies have the option to choose either fixed or floating rates
    • Equipment financing can result in varied accounting and tax benefits
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    According to a recent article in Nation's Restaurant News, a robust point-of-sale (POS) system is virtually essential for every modern multi-unit restaurant chain. 

    financing a POS - inline Interactive and intuitive, these valuable tools give everyone from the store manager to the corporate headquarters a unit-level view of the pace of sales, minute-by-minute labor costs and rich detail on which items are selling and which aren't. However, about every five years, POS systems need upgrading, and the steep cost to multi-unit operators leaves some delaying such major expenditures. Here's why… and how a POS financing solution can help move past this hurdle.

    Doug McKenzie, specialty finance leader at CIT Franchise Finance, believes operators may put off upgrading POS systems because such technology isn't a direct customer touch point. He says operators prefer to invest in new lighting, signage and seating that are proven sales boosters, changes customers notice, he adds.

    "If they're not seeing the direct benefit of better P&L management and system controls, [franchisees] may try to delay upgrading," McKenzie says.

    Accepting that it's time to upgrade, operators often search out POS system and equipment financing options. According to Douglas Solomon, vice president of strategic relationships for Direct Capital, a subsidiary of CIT, some lenders partner proactively with franchisors to package approved POS systems and lending options.

    "If the franchisor is doing research on the best POS system for their franchisees, we will team up to build a campaign around that program," Solomon says. Those packages, he adds, are online for franchisees to view at their own discretion. "Whether they need one, two or 20 units, they can quickly apply for financing, take advantage of some established rate structures that we put in place, quickly get feedback … and get the product installed."

    Should an operator consider financing a good option on larger, structured deals where POS systems are a portion of the financing, McKenzie advises borrowers to be prepared to discuss their financial statements as lenders will review both cash flow sufficiency and debt-to-EBITDA ratios. On smaller deals, financing is often very quick and easy, sometimes requiring minimal financial documentation.

    The most obvious pitfall to avoid, he says, is researching POS systems without first consulting the franchisor.

    "Don't make a POS system decision independent of talking to the franchisor," he cautions. "Don't be the franchisee who discovers after spending 500 grand that the franchisor has a new agreement with a POS vendor. I've seen it happen."

    To read the full article, "Financing a POS System Could Be Fiscally Prudent," go to the Knowledge Center on CIT.com. If you enjoyed this blog post, please consider sharing it with your social media networks and invite them to register for our blog alerts.