Equipment

What Kind of Equipment does Bear Funding Group finance?
• BFG does virtually any kind of equipment, vessel, or vehicle used for a business.
• The “TOP 10″ types of equipment found in BFG’s portfolio are:
• Manufacturing Equipment,
• Corporate Aircraft (piston, turboprop, and fanjet – not ‘public’ or commercial aircraft such as a 747),
• Trucks,
• Semi-Tractors,
• Trailers,
• Construction Equipment,
• Data Processing Equipment,
• Office Equipment,
• Printing Equipment, and
• Medical Equipment.

Deal Size
• Between $30K and $10M

What are Bear Funding Group’s credit standards?
• Minimum of 3 years in business.
• Debt Service Coverage – If revenue-producing equipment, Traditional Cash Flow Coverage (Net Income + Depreciation / CMLTD) should be no less than 1:1 including the new debt. If equipment is not revenue producing Traditional Cash Flow Coverage should be better than 1.25:1 including the new debt.
• Leverage should be no more than 3-5x (total liabilities to TNW), although higher leverage may be acceptable depending on cash flow and other factors (industry, guarantor support, etc.).

What size of company does Bear Funding Group target?
• Businesses with more than $1MM in annual sales.

Will Bear Funding Group do refinances or cash-out transactions?
• BFG only does refinancing on a very limited basis and they must be supported by the market value of the equipment.  BFG does not do “cash-out” or any refinancing purely to improve the cash flow of the Borrower.

Bear Funding Group Products
• Equipment Loans: Equipment Loans are note and security agreements through which BFG finances the customer’s purchase on a fixed or floating rate basis.
• Tax Lease: BFG retains depreciation on equipment while the customer benefits from lower lease payments.
• EBO Lease: Tax lease with a “one time opportunity” during which the customer may terminate the transaction, prior to its scheduled expiration, through an early buyout option (EBO).
• CAP Lease: Tax lease in which the customer may purchase the equipment for fair market value (FMV), not to exceed a predetermined percentage of the original equipment cost, at lease expiration.
• First Amendment Lease: Customer agrees to purchase the equipment at the greater of fair market value or a predetermined price.  Generally, BFG retains the depreciation on this lease.
• TRAC Lease: Tax lease on commercial motor vehicles in which customer and BFG agrees to a predetermined value for the vehicles at lease expiration.  Customer may elect to purchase the vehicle at the predetermined price when the lease expires.  They may also return the vehicles under the terms of the Terminal Rental Adjustment Clause (TRAC).
• Modified TRAC Lease: TRAC Lease in which customer’s exposure for the predetermined value is limited and the balance of the risk is transferred to BFG.  Modified TRAC’s may be structured as operating leases under FASB 13.
• Lease Purchase/Finance Purchase: Equipment can be purchased for a prearranged price at the end of the lease term with purchase options or with purchase agreements.  Depreciation benefits are typically passed on to the lessee/user.
• Vendor Leasing/Financing: Enables equipment manufacturers, distributors, and dealers to provide their customers with third-party financing through BFG.
• Syndications: When a customer’s need exceeds BFG’s credit appetite, BFG can syndicate part or the whole of the transaction on a non-notification basis.

Construction Equipment
 
• Trailers
• Dump trucks
• Forklifts
• Crushers
• Cranes
• Drill rigs
• Mounted trailers
• Excavators
• Directional drills
• Haulers
• Bulldozers
• Skid loaders
• Side loaders
• Backhoes
 

Manufacturing Equipment
 
• Lathes
• EDM Machines
• Trucks
• Laser systems
• Coating systems
• Machine tools
• Plasma cutting equipment
• Speed cutters/grinders
• Edger’s
• Machine centers
• Bridge systems
• Lapping machines
 

Medical/Dental Equipment
 
• Billing systems software
• X-Ray equipment
• MRI machines
• Dictaphone systems
• Hospital beds
• Ambulances
• Ultrasound systems
• Vascular testing systems
• Air purification / ventilation systems
• Cooling towers
• Image checkers
• Autoclave