How VFI can Provide Working Capital Infusion in a Time of Need

In today’s dynamic business environment, having access to working capital is crucial for any company’s survival and growth. Working capital is the amount of money available to a company to fund its day-to-day operations. It is the difference between current assets and liabilities, and businesses need to maintain adequate working capital levels to ensure their continued success.

However, sometimes a company may face a situation where its working capital requirements exceed its available cash reserves. This can be due to various reasons, such as a sudden increase in demand, unexpected expenses, or a slowdown in sales. In such scenarios, businesses must explore alternative funding options to infuse working capital into their operations.

This is where VFI can play a significant role. VFI offers several financing options that can provide a working capital infusion to businesses in need. 

Why Choose VFI?

VFI is a top choice for businesses looking to infuse working capital into their operations for several reasons. We have decades of expertise in providing direct lending structures to various industries, and our team has earned the industry’s trust. 

VFI’s investment-grade rating gives us access to hundreds of millions of dollars in deployable capital, ready to be used in offering the best terms for every project. We offer flexible financing options, including the Sale and Leaseback program and the Equipment Lease Line of Credit program, as well as asset-based lending and term lease structures. VFI takes a personalized approach to every client’s account, quickly adapting to their needs and providing transparent service and speed that sets them apart. As an investment-grade commercial finance company, rated by a Nationally Recognized Statistical Rating Organization (NRSRO), VFI provides structured financing on the best economic terms available, tailored to clients’ balance sheet, cash flow, and tax needs.

Sale and Leaseback Program

One of the financing options offered by VFI is the Sale-Leaseback transaction, which provides a working capital-like structure to businesses in need of a cash infusion. Through a Sale-Leaseback transaction, VFI can provide a capital infusion to the organization using their unencumbered assets as collateral.

How the Sale-Leaseback Program Works

The company identifies the equipment it wishes to sell and lease back. VFI values the equipment and makes an offer based on the assets obtained. The company then sells the equipment to VFI and receives an immediate cash infusion. VFI takes ownership of the assets while the client maintains the use and operation of their equipment until the transaction is completed. The company then leases the equipment back from VFI and continues to use it.

This option is particularly useful for businesses that have a large inventory of equipment that is not being used to its full capacity. By leveraging their unencumbered assets, businesses can access the working capital they need without having to liquidate their assets or incur additional debt.

Sale-Leaseback transactions also offer several other benefits to businesses. First, they provide an immediate cash infusion, which can be used to fund operations, invest in new projects, or pay off existing debt. Second, businesses can free up valuable resources that were previously tied up in their equipment. By selling their equipment to VFI and leasing it back, businesses can use their resources to fund other areas of their operations. Third, Sale-Leaseback transactions provide greater financial flexibility, as they do not require businesses to take on additional debt or liquidate their assets.

Benefits of the Sale and Leaseback Program

• Immediate cash infusion
• Free up valuable resources
• Greater financial flexibility

Equipment Lease Line of Credit

The Equipment Lease Line of Credit program is designed to help companies acquire the necessary equipment to grow their businesses. It allows companies to establish a designated credit line for equipment acquisitions, which preserves the availability on their firm’s primary bank lines and frees up liquidity to operate and grow their business.

How the Equipment Lease Line of Credit Program Works

First, the company establishes a credit line with VFI for equipment acquisitions. This designated credit line can be used to acquire new or used equipment from multiple vendors, providing businesses with the flexibility to choose the equipment they need from the vendor they prefer.

Once the equipment is identified and selected, the company leases the equipment from VFI. This allows the company to conserve its cash reserves and use them for other areas of its operations. By leasing the equipment from VFI, the company can make affordable monthly payments over the term of the lease, rather than paying a lump sum upfront.

Benefits of the Equipment Lease Line of Credit Program

• Access to a dedicated source of funding
• Greater financial flexibility
• Conserve cash reserves

Other Financing Options

In addition to the Sale and Leaseback program and the Equipment Lease Line of Credit program, VFI offers several other financing options to businesses looking to infuse working capital into their operations. These include:

• Asset-Based Lending – This program allows companies to leverage their accounts receivables and inventory to obtain working capital financing.
• Term Lease Structures – This program provides financing from 24 to 60 months to companies for capital expenditures or other long-term investments.

Parting thoughts

In today’s fast-paced business environment, having access to working capital is essential for any company’s success. VFI offers several financing options that can provide a working capital infusion to businesses in need. The Sale and Leaseback program and Equipment Lease Line of Credit program are just two of the many financing options available to companies needing a cash infusion. By leveraging these programs, companies can acquire the necessary equipment to grow their businesses and achieve their financial goals.

If you want to infuse working capital into your business, contact VFI today to learn more about their financing options. VFI’s decades of expertise in providing direct lending structures to various industries, combined with our commitment to providing every client with an exceptional experience, make us the ideal partner for your financing needs. With VFI’s financing options, businesses can access the capital they need to meet their working capital requirements and achieve their growth objectives.