Challenged Credit Programs
for Financial Partners

As a financial institution, turning away businesses due to challenged credits can hurt your bottom line. Rather than turning down challenged credit businesses, turn to NFS Leasing for help. We specialize in helping challenged credit businesses find the equipment financing they need with customized solutions.
“NFS has enabled Everyone Counts to keep up with emerging technology and provide the tools needed to bring modern election administration and voting systems to election officials. Their flexibility and knowledge of the technology industry sets them apart from the other leasing providers. They are responsive, easy to work with, and consummate professionals. I recommend them highly!”

Rick Forry, Finance Manager

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Don’t Turn Down Challenged Credit Businesses – Turn to NFS Leasing

Provide an alternative solution to your challenged credit businesses that aren’t presently ready for traditional financing by partnering with NFS Leasing. NFS Leasing specializes in financing options for challenged credit businesses by providing customized solutions. Don’t leave your customers with an unmet financial need. A partnership with NFS Leasing provides Banks and Asset Based Leasing companies support for their challenged credit clients by:
  • Mitigating the risk of customer loss that may arise when declining a challenged credit business requesting critical funding
  • Minimizing and reducing your credit exposure for your high-risk borrower
  • Supplementing funding gaps on larger projects that are beyond your comfort level
  • Supporting long-time customers with a worthy business story, where you are unable to extend further financial support
We want to partner with you. Contact NFS Leasing so we may provide you the opportunity to help those customers when, due to credit policies, you cannot approve their application.

SAMPLE CLIENT FUNDINGS

NFS Leasing has completed many fast equipment financing transactions recently. Check them out here.

Back to Capital equipment financing transactions are common at NFS Leasing.

Check out some of our recent fundings here.

LEASE SCENARIOS

NFS Leasing FMV Operating Leases

FMV Operating Leases

Lower up-front costs, lower monthly payments, multiple tax advantages may be available and up to 100% financing including “soft costs”.
NFS Leasing Finance Buy Out Leases 1

Finance / $ Buy Out Leases

Enjoy benefits of ownership of the asset with exclusive right to use, purchase options and up to 100% financing of the asset and soft costs.
NFS Leasing Sale and Leaseback 1

Sale and Leaseback

Monetize the equity in your recent equipment purchases to free up cash and lower your tax burden while still retaining use.
NFS Leasing Working Capital Loans

Working Capital Loans

Cover unexpected losses, take advantage of cash buyer benefits, last minute supplier discounts or whatever else is needed.

NFS Financing at a Glance

  • Geography: United States and Canada
  • Transaction Sizes:
  • Small-Ticket Program: $25K – $150K
  • Mid-Large Ticket: Up to $15M
  • Terms: 12-84 months (pending asset class)
  • Creative Structures: Including Step Payments (term), Quarterly/Annual Payment Options, and Short-Term Leases
  • Asset Class/Industries: Most hard assets but most commonly we lease: IT, Medical Imaging, Scientific Instrumentation, Manufacturing, Print Production, Construction, Agricultural, Machine Tools. Most industries except for: Weapons, Adult Entertainment, Marine and Aircrafts, Cannabis in U.S. (will look at Cannabis in Canada).

Frequently asked questions

An equipment lease is a finance rental arrangement between an equipment owner (the lessor) and a business owner (the lessee). The lessee gets to use the equipment by paying the lessor monthly lease payments over a mutually agreed upon term length.
The principal motive for leasing equipment is cash flow ”the ability to get equipment now without a major one-time expenditure of cash.” This enables the business to better match expenses with revenue and protect against obsolescence. Other businesses may prefer to lease because their tax situation is such that it cannot benefit from the depreciation. It may also wish to maintain a debt-equity ratio that will attract new investment more easily, and leasing (rather than investment) will accomplish that. And, those companies engaged in rapidly evolving technological market, use leased equipment under short-term leases permitting it the opportunity to exchange new and better equipment more rapidly than would with ownership of a capital lease.
NFS is a privately-held North American leader in Equipment Finance Leasing with nearly two decades of experience. NFS provides solutions, supporting businesses and organizations with challenged credit including; start-up, pre-revenue, financially distressed and turnaround companies, NFS uses its own balance sheet capital and provides fast, flexible decisions. We are a story credit lender. We want to hear your story.
The NFS Leasing Management Team understands the challenges of running a business and wants to help those struggling to secure critically needed financing. We are a creative and flexible financer. We want to hear your story. We are a trusted partner with exceptional listening skills. We will partner with you to provide creative financing solutions and structures for many non-traditional financing needs. We also consider other forms of collateral providing multiple options for financing. Tell us your story.
We fund transactions from $25K – $150K (small-ticket program) and up to $15M (flexible custom solutions). While a wide range, funding the under $1M supports various situations with new NFS customers and repeat customers.
NFS has no hard and fast rules for making a credit decision. We want to hear the story of your business and will gather information to make an informed and flexible credit decision to help your company grow and achieve your objectives.
NFS Leasing offers several types of equipment leasing. Including FMV Operating Leases, Finance/ Dollar Buy Out Lease, Sale Lease Back and Working Capital (secured by assets). NFS also offers creative structures including; Step Payment Leases (term), Quarterly/Annual Payment Options and short-term leases. We work together as partners to determine the best financial solution. We take time to listen to your story and provide guidance and education on the lease types, terms and terminology. We view our partnerships as a collaboration and want to support your business situation.
The equipment you lease may qualify for the Section 179 tax deduction. Through Section 179 a business can deduct the monthly payments from its taxable income. Not all types of equipment are eligible, and there are certain IRS requirements that need to be followed. Consult with your tax professional.

Contact us here to tell us your story and discover how our creative financing solutions can help your company succeed.

We are THE story lender
Tell us your story

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Years In Business & Over 300 Years
Combined Management Expertise

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Over 5,000
Clients & Partners*

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Approaching $1 Billion
In Total Lease Originations

It is common for many businesses to undergo cash constraints due to challenged credit. Whether large, small, established, private or public, cash constraints, including challenged credit, can arise. NFS Leasing is here to help and will listen to your story, understand your needs, and work with you to construct a custom equipment finance solution that meets your needs. Contact NFS Leasing and tell us your story.

A FMV lease is an Equipment lease where the lessee has the option to either extend the lease, buy the asset at the end of the lease term at the then fair market value, or return the asset to the leasing company.
FMV Leases have lower up-front costs, lower monthly payments and multiple tax advantages. Technically, the lessee does not own the equipment. In an FMV Lease, the lessee can finance up to 100% of the cost of the equipment including “soft costs” (transportation, delivery, installation and other deferred costs).

The payment is usually lower than a Capital Lease (which preserves cash flow) and also allows the business to deduct qualifying lease payments as operating expenses. An NFS FMV Lease includes Skip Payment Leases and Step Payment Leases. These leases can be tailored with flexible structures, tax advantages and end-of-term buyout options including lease extensions, return or purchase of equipment at fair market value.

  • Often most affordable, flexible lease type
  • A fixed monthly payment with little or no upfront costs
  • 100% financing may be available
  • Often used when a company does not want to retain the equipment at the end
  • Can help manage the cost of continuous upgrades and maintenance issues
  • May have significant tax and accounting benefits

Finance / $ Buy Out Leases are similar to traditional loan purchases as it effectively captures the ownership of the asset with exclusive right to use and purchase options but also offers 100% financing; conserving cash up front for other projects with higher ROI potential. Technically, the lessee owns the equipment. If long-term equipment ownership is your goal, then a Finance / $ Buy Out Lease is an excellent choice.

Payments are fixed and as equipment owner, you can depreciate the equipment and even take advantage of Section 179 incentives and Bonus Depreciation. NFS Finance / $ Buy Out Leases are a good option for financing equipment with a long useful life (such as yellow iron, manufacturing machinery, warehousing and racking, etc.) as the equipment may be depreciated on your balance sheet and you may be able to deduct the interest expenses from your taxes. See your tax consultant for details.

  • Often used for equipment that retains its value over time
  • Has a set lease term and fixed monthly payments
  • Equipment ownership is often transferred to the lessee
  • Equipment appears on the balance sheet as company assets
  • Often used when a company does not want to retain the equipment at the end
  • For tax purposes, using Section 179, it may be possible to deduct as a business expense
  • At the end of the lease term, the lessee purchases the equipment for $1

A sale leaseback is when NFS purchases equipment that a company owns and then leases it directly back to the company.

With an NFS Sale and Leaseback, you can monetize the equity in the owned assets up to 80% of the fair market value of the owned assets. This is useful when a company needs to use the cash invested in an asset for other investments (where a higher rate of return can be generated), but the asset is still needed in order to operate their business. This provides the company immediate cash and then at the end of the term, the company may own the equipment outright again.

A sale leaseback can provide the opportunity to reinvest the newly acquired capital towards expansion, company expenses, purchasing inventory or many other business needs. Reimbursements can be structured as a lease or a loan depending on your unique business needs. Regardless of architecture, rest assured that your transaction will be funded quickly with flexible terms and a custom solution from NFS Leasing.

  • Often used when a company needs to generate cash/capital
  • Typically, has longer terms and lower payments
  • Can borrow up to 80% of the value of asset
  • Retain control and operation of the equipment for duration of lease with few or no restrictions
  • May provide tax benefits

Simply put, Working Capital is the amount of funds a company needs for meeting day-to-day operations of a concern. Most major new projects, such as an expansion in production or entering into new markets, require a working capital investment. That reduces cash flow and can in turn jeopardize meeting the day-to-day business operations. Working Capital Financing can provide the solution.

NFS Working Capital Financing is secured only by the specific asset being financed, not all the present or future assets. Within these structures, the borrower is the title holder and NFS Leasing is a lienholder on the financed equipment. Advantages can include fixed rates for the full term; not tied to market rates that may rise over the term of the loan.

Working Capital Financing also have no covenants that, unlike most bank loans, allow you to borrow future funds when needed. Businesses who prefer retaining ownership during the life cycle of the transaction favor Working Capital Financing. These also offer tax advantages as the equipment may be depreciated on the business’s balance sheet and the business may be able to deduct the interest expense as well.

  • Fixed financing that is blended covering the equipment and the working capital
  • Simplified budgeting with predictable payments
  • Receive the working capital at the time of equipment funding
  • Unrestricted use of funds within your business