Equipment-Only V. CapEx Loans

At Celtic Capital, we make equipment-only loans on existing manufacturing equipment (and/or rolling stock) that’s company-owned and housed in its own facility. As we’re looking for the equipment to be predominantly in one location, rental equipment housed at various customer sites is not equipment on which we lend.

We also provide Capital Expenditure (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 A/R line and here’s why:

On an equipment-only loan, we lend on 75%-80% of the equipment’s forced liquidation appraisal. On a CapEx loan, we lend on 70% of the purchase price but like a car, the value of that equipment depreciates right away. We take a forced liquidation approach because of the market we serve – non-bankable companies at a riskier point in their business’ history – so we like CapEx loans to be part of a larger facility.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or, or visit us at