U.S. Market Size of Lenders offering Secured Loans using Industrial Equipment as Collateral

Goals

Identify or calculate the market size for U.S. mid-sized businesses (20-200 employees) that offer loans secured by industrial equipment. The market size should be represented in terms of number of companies, revenue, income, OR assets. If possible the market size should also be broken down by equipment sub-sectors, specifically repair/maintenance equipment, construction equipment, metal/machinery manufacturing equipment, and high-tech manufacturing equipment (or any other sub-categories of the like).

This information will be used inform an investment decision and attracting follow on capital and marketing strategies.

Early Findings

  • The way in which equipment that lenders will accept as collateral for a loan are typically categorized in either one of two ways: 1) equipment that would be accepted as collateral, and 2) equipment with a minimum auction value.
  • Most industrial equipment secured loans follow a 1-to-2 ratio of the value of the equipment to the amount loaned.
  • Exponential Commercial Finance offers equipment-based secured loans for the following types of heavy machinery, among others:
    • Flat bed trucks, street sweepers, garbage trucks, tow trucks, mechanic's trucks, trailers, roofing trucks, dump trucks
    • Cranes, bulldozers, excavators, tractor-farming, sewer/septic equipment
    • Above-ground fuel tanks, backhoes, chippers, stump cutters, concrete mixers
  • According to the National Business Capital & Services, Inc., small businesses are more likely to obtain secured loans using equipment as collateral, in addition to receiving lower payments and longer loan terms.
  • Secured business loans are typically available via traditional lenders, but often take months to obtain. However, alternative business financing companies and smaller, private lenders typically make funds available immediately for approved applicants.

Proposed next steps:

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