Food for Thought

3 Reasons Why Food Manufacturers Love Lease Lines of Credit

3 Reasons Why Food Manufacturers Love Lease Lines of Credit


Finding new and strategic ways to finance improvements in your business is a concern we hear from many of our peers in food manufacturing. Particularly toward the end of the year, when budget planning tends to get into gear, our clients are especially curious about flexible solutions that we offer like lease lines. 

3 Reasons to explore lease lines:

1. Simplify Implementation

Equipment upgrades and replacements are inevitable. Often the process of identifying financing partners, soliciting proposals for each and every project is too time-consuming. Instead, many manufacturers turn to their banks and miss out on the favorable terms and flexibility that a lease line offers them. Since lines of credit are pre-approved, they eliminate the need to review rates and terms on every project.

2. Adjustable Scope

Since lease lines are typically set up for 12-18 months at a time they can be designed to accommodate a varying scope of your needs for the year. They allow the ability to budget for specific large projects coming up, or for your company’s entire capital expense budget to be used as needed.

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’re planning throughout the year.

If a lease line of credit sounds like an interesting solution for your business, learn more here:

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