An Equipment Line of Credit (ELOC) is a financing mechanism tailored for businesses that want to use a credit line to acquire machinery and equipment. An ELOC can facilitate equipment upgrades with minimal cash flow disruption. Utilizing a pre-approved credit line can be more advantageous than a conventional lump-sum equipment loan. Here are five ways in which an ELOC can benefit your equipment acquisition strategy:

  1. Flexible Access to Funds: An ELOC gives you access to the money you need, as you need it, up to a pre-approved credit limit. If your company has purchased new equipment assets within the past 6-9 months, PNC can finance these assets on an ELOC or a straight term loan.
  2. Streamlined Acquisition Process: Once your business has been approved, you’re ready to make purchases — no lengthy loan application for each purchase.
  3. Preservation of Working Capital: Using an ELOC lets you preserve working capital for other business needs.
  4. Tax Benefits: Interest paid on an ELOC and the asset depreciation on purchases you make may provide business tax benefits, such as Section 179 Tax Deduction. may reduce taxable income. Please note: PNC does not provide tax advice. Check with your accountant regarding the tax treatment of any line of credit or loan.

Securing Capital for Equipment

Securing capital for equipment while protecting your bottom line can be challenging. PNC Equipment Finance offers financing solutions to help you stay current with technology, improve productivity, and enhance cash flow. Our experienced team can help to customize a line of credit, lease, or term loan to meet your specific needs. We specialize in equipment financing for everything from manufacturing and medical equipment to transportation and information technology. Our goal is ensuring that you have access to the best equipment financing solutions to help your business grow.

Learn more about how PNC can help with all of your equipment financing needs.