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.