Why Equipment-Only Loans (E-O Loans) Are Rare but Critical for Business Growth

Many Traditional Lenders, Including Banks, Have Strict Policies Around Equipment Financing

• Equipment required to be secondary or ancillary collateral.
• Capped exposure to “single-asset” loans.
• Directing equipment financing requests to separate divisions, such as leasing departments.

As a result, requests for Equipment-Only Loans are frequently declined; not due to the borrower’s creditworthiness, but because the request does not fit standard lending models.

Why Asset-Based Lenders Often Avoid Equipment-Only Loans

Asset-based lenders (ABLs) typically focus on loans secured by a broad borrowing base of accounts receivable or inventory. Equipment-Only Loans generally don’t fit this model because:

• They don’t align with the borrowing-base approach.
• The risk-reward profile is less predictable and less appealing.
• Lending without direct control of cash flow creates discomfort.
• Internal lending policies often restrict single-asset exposure.

How Celtic Capital Fills the Equipment-Only Gap

Celtic Capital is uniquely structured to provide Equipment-Only Loans with speed, flexibility, and minimal disruption to existing bank or ABL relationships. Our approach:

• Underwrites equipment as the primary and sole collateral.
• Accurately prices loans based on equipment risk, ensuring fairness and transparency.
• Maintains non-dilutive solutions to existing lending relationships.
• Moves quickly to approve and fund loans where traditional lenders cannot.

The Benefits of Celtic Capital’s Equipment-Only Loans

Celtic Capital’s Equipment-Only Loans provide a clean, non-competitive participation solution that helps lenders meet their clients’ additional capital needs without disrupting the existing lending relationship. It’s a smart, flexible alternative so you can say “yes” to additional credit requests without added risk. And borrowers have access to funding that empowers growth, fuels expansion, or enables operational upgrades.

Learn More or Refer a Business Today

If your client, or your business, needs equipment financing that falls outside traditional lending models, contact Celtic Capital to explore how our Equipment-Only Loan Program can provide a tailored, fast, and non-competitive solution.

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 more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 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.