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3 Reasons Why Companies Love Lease Lines of Credit

3 Reasons Why Companies Love Lease Lines of Credit


1. Simplify Implementation

Equipment upgrades and replacements are inevitable. Identifying potential financing providers, soliciting proposals, conducting due diligence, and analyzing financing terms for each and every project is too time-consuming. Instead, many companies choose a lease line of credit to save time and simplify their process. A lease line of credit is a pre-approved credit facility that can be used to fund various projects over a period of time. It eliminates the need to conduct due diligence on every project. Make one decision on a lease line rather than many decisions for many projects.

2. One Fixed Payment

Rather than paying for capital equipment with a large up-front investment and paying maintenance costs each year thereafter, a lease line allows companies to finance the entire solution by bundling all project costs into one easy monthly payment. Lease lines are typically set up for 12-18 months at a time and can be set up in advance of the project(s).

3. No Fees

A lease line gives you the freedom to use as much or as little as you need. With First American’s lease line product, you will never pay any under- or non-utilization fees. Your lease line will be there to cover any equipment, software, service, or build-out projects that you are planning throughout the year. Learn more:

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First American Commercial Bancorp, Inc. is a wholly-owned subsidiary of City National Bank. Deposit products and services are offered by City National Bank Member FDIC. City National Bank is a subsidiary of Royal Bank of Canada. “First American Equipment Finance” is the trade name for certain equipment leasing and finance businesses of First American Commercial Bancorp, Inc. and its subsidiaries. Equipment financing transactions are provided in Canada by FA Equipment Finance, Inc. For California clients: Loans made or arranged pursuant to a California Finance Lenders Law license. All transactions are subject to credit approval. Some restrictions may apply. All trademarks are the property of their respective owners.

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