Working Capital Financing

Working capital financing keeps cash in the account while you add scissor lifts to the fleet. Separate the equipment buy from the operating account. Fund in 1-2 weeks.

Cash sitting in the operating account is not idle. It covers payroll between invoice cycles, holds open the line for unexpected repairs, and lets you say yes to a job before the deposit clears. Pulling that cash out to buy a scissor lift or a fleet of them is a trade-off that equipment financing exists to avoid.

Working capital financing separates those two decisions. The lift goes on a structured payment, sized to the asset and the term, and the operating account stays funded for the work. For a rental company adding inventory ahead of a busy quarter, or a contractor buying decks before a multi-floor contract kicks off, that separation is the difference between running the business tightly and running it stressed.

We fund from $50k on scissor lift transactions. The sweet spot for most buyers sits between $100k and $150k, where a three-to-five unit order fits comfortably on a monthly payment that clears from the revenue those decks generate. Application-only financing up to around $400k means no tax returns and no financial statements for most deals, just three months of bank statements to show the cash flow is there.

Why Equipment Buyers Keep Cash and Finance the Iron

A lift deck that costs $35,000 used or $55,000 new represents a real lump of cash for a two-crew electrical contractor or a single-location rental shop. Paying cash for that unit feels clean on paper, but it drains the account at the moment the company also needs to front material costs, carry receivables, and pay crew between billings.

The argument for financing is straightforward math. If the business earns more than the cost of the financing by keeping that cash deployed in operations, the loan pays for itself. For most active contractors and rental operators, that is true. A scissor lift generating rental revenue or supporting billable labor covers a monthly payment; the same cash doing nothing in a checking account earns almost nothing.

Beyond the arithmetic, there is the optionality. A company with $80,000 in the account and a $60,000 scissor lift purchase to make can pay cash and sit at $20,000, or finance the purchase and sit at $80,000. That extra cushion is a buffer against a slow month, a job that stalls, or an equipment repair. Equipment rental companies building fleet know this acutely; adding three units to the yard on financing leaves the cash to cover insurance, maintenance, and driver costs without betting the season on a full lot.

How We Structure the Deal

Working capital in this context is not a revolving line of credit. We structure the equipment purchase as a term loan or equipment lease, with fixed monthly payments over 24 to 72 months depending on the deal. You get the machine immediately. The payment is predictable and does not fluctuate with interest rate changes on a revolving facility.

The structure is usually a loan (ownership transfers at closing) or a dollar-buyout lease (ownership transfers at the end for $1). Both carry fixed payments. An FMV lease gives lower payments in exchange for less certainty about end-of-term ownership, which works for buyers who prioritize current cash flow over the asset on the balance sheet.

For multi-unit orders, we size a single facility against the whole package. Buying six 26-foot slab electrics for a fit-out crew is one deal, not six separate applications. That keeps the documentation simple and lets the payment structure reflect the total project rather than individual unit costs.

The bank statement review covers revenue consistency, average daily balances, and the pattern of deposits relative to the requested payment. We are not running a credit-score-only underwrite; we want to see the business actually generates the cash to support the monthly number. Most applicants who have been operating for at least a year with consistent revenue qualify. B and C credit is considered when the bank statements support it.

New, Used, and Refinance Options for Cash Flow

New equipment carries lower per-unit risk from a maintenance standpoint and typically qualifies for longer terms, which reduces the monthly payment. A new JLG or Genie slab electric at 32 feet might be financed over 60 months, with a payment that is modest against rental income from a single unit on a busy week.

Used equipment is often the better cash-flow play for buyers who are adding to an existing fleet and have in-house maintenance capability. A well-maintained used scissor lift from a rental fleet at half the new price cuts the monthly payment proportionally, which means the same rental revenue services more units. We finance used machines at the same terms as new on most credit profiles.

If you already own scissor lifts outright or have low remaining balances, a sale-leaseback converts that equity into operating cash without selling the equipment. The machine stays on the job. Cash lands in the account. That is a direct working capital injection without taking on new iron.

Refinancing an existing portfolio at a better rate or longer term is another path. If you financed equipment when rates were higher or when your credit profile was weaker, refinancing the remaining balances frees up monthly cash flow. We handle that as a scissor lift refinance on the specific units.

Buyer Profiles That Benefit Most

Rental operators are the clearest case. A rental fleet grows on equipment financing, not on cash. Every dollar kept in the account either funds the next unit's down payment or covers the operating costs of the yard. Buying a $45,000 used deck for cash to put on a $1,200 per week rental rate is a 37-week payback on cash. Finance the same unit at $900 per month and the weekly cash flow from week one is sharply positive.

General contractors bidding multi-phase commercial work often need to own their lifts rather than rent them across a 12-month project. The rental cost of keeping six scissor lifts for a year typically exceeds the finance cost of owning them, and at the end of the project the equipment holds residual value. Financing preserves the cash flow to cover labor and materials while the project burns down.

Facilities maintenance teams at large industrial or commercial campuses often standardize on a specific deck height and platform rating. Buying a handful of units for an internal fleet, financed over 48 months, costs less per month than renting the same units from an outside supplier, and the assets stay on the property. Finance the fleet, keep the operating cash for the jobs that come up unexpectedly.

Questions About Working Capital and Equipment Financing

Keep the Cash. Finance the Lifts.

Submit three months of bank statements and the equipment spec. We size a payment around the cash flow we see, not around a credit score alone. Close after file completion, no tax returns required under $400k. The operating account stays full; the fleet gets bigger.

Questions operators ask

Clear answers before the lift moves.

Open a question for the practical details on equipment, documents, timing, and structure.

Can I finance a scissor lift purchase if I already have other equipment loans outstanding?

Yes. We underwrite against total business cash flow, not just the existing debt load. Existing obligations show up in the bank statements, and we look at whether the revenue pattern supports the additional payment. Having other financed equipment is normal and does not automatically disqualify a deal.

How much do I need to put down on a scissor lift financed this way?

Many deals close with no money down, particularly for buyers with strong bank statements and at least one year in business. Some lenders require a first-and-last payment advance rather than a traditional down payment. The stronger the bank statement history and credit profile, the less you typically need to put in up front.

Is equipment financing the same as a line of credit for my business?

No. Equipment financing is secured by the specific piece of equipment and carries fixed monthly payments over a set term. A line of credit is revolving, draws on demand, and usually requires collateral or a strong credit relationship with the bank. Equipment financing is often easier to get than a line of credit for businesses with solid cash flow but limited banking history.

What if I want to pay off the loan early?

Prepayment terms vary by lender and structure. Some deals allow prepayment without penalty after a certain period; others carry a prepayment fee. We disclose this before you sign. If early payoff flexibility is important, tell us upfront and we will prioritize lenders whose structures accommodate it.

We have seasonal revenue. Can we still qualify for equipment financing?

Seasonal businesses qualify regularly. The bank statement review looks at the full three-month pattern, and we note seasonality when placing the deal. Some lenders offer seasonal payment structures that reduce payments during off-peak months. See our page on deferred and seasonal payment options for details on that specific structure.