Product Overview

Customers Bancorp’s Equipment Financing is designed for small and mid-sized companies that require capital to purchase, lease, or refinance business equipment. Whether you are replacing aging assets, expanding production capacity, upgrading technology, or acquiring specialized tools, this financing solution provides predictable payments and flexible structures to fit your cash flow needs. Financing options include term loans, capital leases, and seasonal or operating leases, each tailored to the useful life and depreciation profile of the equipment financed.

Key Features

• Flexible Terms: Loan terms that match the useful life of equipment, with options from short-term (12 months) to long-term (up to 84 months or according to asset life).
• Competitive Pricing: Market-competitive interest rates and fees structured to minimize total cost while preserving working capital.
• Multiple Structures: Term loans, capital leases, operating leases, and seasonal arrangements available to suit tax, balance sheet, and cash-flow objectives.
• Fast Decisioning: Streamlined underwriting and responsive credit decisions to reduce downtime between approval and equipment delivery.
• Up to 100% Financing: Possible financing up to the full cost of equipment including taxes and delivery for qualified borrowers.
• Refinance and Consolidation: Options to refinance existing equipment debt to improve cash flow or consolidate multiple payments into a single obligation.

Benefits for Your Business

Choosing equipment financing through Customers Bancorp can provide several strategic advantages:

• Preserve Working Capital: Keep cash on hand for operations, payroll, and growth initiatives while acquiring critical equipment.
• Predictable Budgeting: Fixed monthly payments simplify budgeting and financial planning.
• Tax Considerations: Financing may allow you to deduct interest and, depending on structure and current tax rules, take advantage of accelerated depreciation. Consult your tax advisor for specifics.
• Upgrade Flexibility: Lease structures make it easier to upgrade technology and avoid obsolescence without large upfront costs.
• Improve Return on Investment: Spread equipment costs over the productive life of the asset to better align payments with revenue generation.

Eligible Equipment

Financing is available for a broad range of business equipment, including but not limited to:

• Manufacturing machinery and production lines
• IT hardware, servers, and telecom systems
• Medical and dental equipment
• Construction and heavy equipment
• Commercial vehicles and fleet purchases
• Food service and hospitality equipment
• Energy-efficient and green technology assets

Terms and Structure

Customers Bancorp structures equipment financings to align payment schedules with the asset’s useful life and the borrower’s cash flow. Key considerations include:

• Amortization: Typically amortized over the same period as the loan term, providing predictable principal and interest payments.
• Residuals: Available for leases to lower regular payments while retaining the option to purchase, return, or renew at term end.
• Repayment Options: Monthly, quarterly, or seasonal payments can be customized to match revenue cycles.
• Collateral: The financed equipment generally serves as collateral; additional security may be required for larger transactions.

Eligibility and Underwriting

Eligibility is based on factors such as business credit history, time in operation, financial statements, and the nature of the equipment. Typical underwriting criteria include:

• Minimum time in business
• Demonstrated ability to service debt (cash flow, EBITDA, or DSCR depending on size)
• Credit profile of the business and its owners
• Down payment or equity injection for certain asset types or higher loan amounts

Customers Bancorp applies tailored underwriting to balance risk and opportunity, enabling financing for businesses across a range of credit profiles when supported by viable collateral and cash flow.

Application Process

1. Initial Inquiry: Discuss your equipment needs and desired financing structure.
2. Prequalification: Provide basic financial information to receive indicative terms.
3. Documentation: Submit detailed financial statements, tax returns, equipment quotes, and any requested business information.
4. Underwriting and Approval: Underwriters review collateral value, cash flow, and credit to issue a formal approval.
5. Funding and Delivery: After documentation and funding, you proceed with equipment purchase and implementation.

The process is designed to be transparent and efficient, with clear communication at each stage to minimize delays.

Common Use Cases

• Manufacturers replacing older presses and conveyors to increase capacity and reduce downtime.
• Hospitals and clinics financing diagnostic equipment to expand services.
• Construction firms acquiring new heavy equipment to win larger contracts.
• Technology firms upgrading servers and networking to support growth.
• Restaurants and hotels renovating kitchens and guest services equipment.

Frequently Asked Questions

Can I finance used equipment?

Yes. Used equipment is eligible in many cases, subject to age, condition, and appraised value.

Is there a minimum or maximum financing amount?

Loan sizes vary depending on asset type and borrower profile. Financing is available for small-ticket items as well as larger capital investments.

How quickly can I get funded?

Funding timelines depend on documentation completeness and transaction complexity. Many straightforward transactions can close in a matter of weeks.

Why Choose Customers Bancorp

Customers Bancorp combines industry experience with a relationship-driven approach. The bank focuses on delivering customized financing solutions with personal service, competitive economics, and the operational efficiency businesses need. By partnering with Customers Bancorp, companies gain access to financing structures that support growth, preserve liquidity, and improve operational flexibility.