Capital Expenditures (CapEx) Financing
If your business is ready to acquire new equipment to meet growing demand or expand operations, our capital expenditures financing program is the solution you need. With quick approvals, flexible repayment options, and no hassle, we help you get the funding necessary to purchase essential machinery that aligns with your expansion goals.
Why Choose Capital Expenditure (CapEx) Financing with Celtic Capital?
- Quick and flexible approval process
- Adaptable terms help solve your business needs
- Boost operational efficiency and power business growth
$4,418,710
Manufacturer of Components for Electronics and Communications Industries
$2,738,000
Manufacturer of Tortillas, Wraps, and Flat Bread
$3,476,000
Concrete Polishing and Restoration Service Provider
Frequently Asked Questions
What is Capital Expenditure (CapEx) Financing?
CapEx financing is a type of loan or financing arrangement designed specifically for businesses looking to purchase long-term assets such as machinery, equipment, or vehicles. This financing helps businesses fund capital-intensive investments without depleting cash reserves or sacrificing operational flexibility.
How Does Capital Expenditure (CapEx) Financing Work?
At Celtic Capital, we provide CapEx loans for the purchase of new equipment, though not as a stand-alone facility. We make CapEx loans when they’re tied to an accounts receivable (A/R) line and here’s why:
On a CapEx loan, we lend on 70% of the purchase price but like a car, the value of that equipment depreciates right away. As our clients are non-bankable businesses at a riskier point in their business’ history, we like our CAPEX loans to be part of a larger facility.
What Are The Benefits of Capital Expenditure (CapEx) Financing?
Key benefits include:
- Ability to Acquire High-Cost Assets: without using cash reserves.
- Flexible Repayment Terms: based on the asset’s lifecycle.
- Streamlined Approval Process: as the loan is secured by your business assets.
- Preserves Working Capital: for operational expenses.
Is Capital Expenditure (CapEx) Financing Suitable for Small Businesses?
Yes, capital expenditure financing is particularly beneficial for small businesses looking to invest in essential equipment. It enables small business owners to make large purchases without taking on the financial strain of a full upfront payment. However, businesses should ensure they can comfortably meet the repayment terms based on projected returns from the new assets.