Equipment Financing in Old National Bank

Old National Bank offers equipment financing designed to help businesses acquire the tools, machinery, and technology they need to grow, modernize, and remain competitive. Whether you are purchasing manufacturing equipment, commercial vehicles, medical devices, restaurant appliances, or IT infrastructure, an equipment financing solution from Old National Bank can preserve working capital, preserve credit lines, and align repayment schedules with the productive life of the asset.

Overview

Equipment financing is a flexible way to fund new or used assets without paying the full cost upfront. Old National Bank’s approach combines tailored lending, flexible terms, and industry knowledge so that businesses of varying sizes and sectors can obtain the equipment necessary to operate efficiently. Financing can be structured as loans or leases depending on tax considerations, balance sheet preferences, and the desired ownership timeline.

Key Benefits

• Preserve Cash Flow: Preserve working capital for operations, payroll, and growth while paying for equipment over time.
• Custom Terms: Terms can be aligned with equipment useful life, seasonal revenue swings, or project timelines.
• Potential Tax Advantages: Depending on structure and current tax laws, businesses may accelerate deductions through depreciation or Section 179-like benefits. Consult your tax advisor for guidance.
• Fast Decision Making: Streamlined application and underwriting processes aim to deliver timely approvals and funding so projects don’t stall.
• Preserve Lines of Credit: Use equipment financing to avoid tying up working capital or business credit lines reserved for operations.
• Upgrade Flexibility: Lease and loan structures can include end-of-term options or upgrade pathways to keep equipment current.

Loan Options and Features

Old National Bank offers several equipment financing alternatives tailored to business needs:

• Term Loans: Fixed-rate or variable-rate loans that provide ownership at the end of the term. Ideal when businesses prefer to own equipment and capitalize depreciation.
• Capital Leases: Lease arrangements that resemble ownership with options to purchase at term end. Suitable for businesses seeking predictable payments and potential ownership transfer.
• Operating Leases: Off-balance-sheet options that allow businesses to use equipment for a period without ownership obligations. Often chosen for technology or short-life assets.
• Finance Lines: Revolving or committed lines for multiple equipment purchases, enabling ongoing access to capital for staged investments.
• Vendor and Manufacturer Programs: Partnerships that may include preferred pricing or certified financing for specific types of equipment.

Eligible Equipment

Eligible equipment spans many industries and asset classes. Typical examples include, but are not limited to:

• Manufacturing and production machinery
• Construction and heavy equipment
• Commercial vehicles and fleet
• Medical and dental equipment
• Restaurant and food service equipment
• Office equipment and IT hardware
• Laboratory and scientific instruments

Terms and Considerations

Terms vary by credit profile, equipment type, useful life, and business cash flow. Common considerations include down payment requirements, loan-to-cost ratios, term length (often matched to equipment useful life), and covenant structures for larger transactions. Collateral is typically the equipment itself, and in some cases additional security may be requested for higher-value or specialized assets.

How It Works — Simple Process

1. Initial Consultation: Discuss your equipment needs, timeline, and budget with a financing specialist to identify the most suitable structure.
2. Application & Documentation: Submit basic business financials, equipment quotes, and supporting documentation for underwriting.
3. Offer & Terms: Receive a tailored financing proposal outlining rates, terms, and any documentation conditions.
4. Funding & Acquisition: Upon approval, funds are provided or disbursed to the vendor to complete the purchase or lease setup.
5. Manage & Maintain: Make scheduled payments throughout the term; explore options at maturity such as ownership, renewal, or upgrade.

Eligibility & Documentation

Eligibility is based on business credit, cash flow, industry, and the nature of the equipment. Typical documentation requested includes company financial statements, tax returns, equipment quotes or invoices, business formation documents, and personal guarantees for certain applications. Old National Bank’s commercial lending team works with applicants to clarify requirements and gather necessary materials efficiently.

Why Choose Old National Bank

• Industry Expertise: Experienced relationship managers familiar with the equipment financing needs of diverse sectors.
• Flexible Structures: Ability to craft loan and lease alternatives that fit operational and financial objectives.
• Local Decision-Making: Regional teams can provide responsive support and decision speed for time-sensitive acquisitions.
• Partnership Focus: The bank seeks long-term client relationships, supporting companies through growth cycles and equipment refresh strategies.

Common Use Cases

Businesses often choose equipment financing to replace aging equipment that hampers productivity, to scale production capacity, to comply with regulatory or safety standards, or to adopt new technology that enables new revenue streams. Financing converts a capital expense into manageable operating outlays while enabling faster deployment of resources.

Frequently Asked Questions

Can I finance used equipment? Yes — used assets are often eligible, subject to condition, age, and expected remaining useful life.

Is pre-approval available? Preliminary approvals can often be obtained to help secure vendor pricing and finalize budgeting.

How long does funding take? Timelines vary by complexity, but many straightforward transactions can be completed within days to a few weeks after the application is complete.

Will the equipment be insured? Borrowers are typically required to maintain insurance on financed equipment; specific coverage requirements will be detailed in financing documents.

Conclusion

Equipment financing from Old National Bank is designed to help businesses acquire the assets they need without compromising liquidity or strategic flexibility. With a spectrum of lending and leasing options, responsive service, and tailored structures, businesses can invest in growth, productivity, and technological advancement with confidence. Speak with a financing specialist to explore solutions that align your equipment needs with your financial strategy.

Address Bank: Chicago, Illinois Evansville, Indiana, U.S.
Bank: Old National Bank
Headquarters: Evansville, Indiana
Products: Loans & Credit
Type: Equipment Financing