How a Master Facility Helps a Growing Company
Finance Equipment in Stages
A master facility approves your total equipment line up front, so each purchase becomes a fast draw against already-approved capital.
Most equipment financing is built around a single purchase. You need a machine, you finance the machine, the deal closes. That works when the need is one and done. But for a company that is growing and knows it will be acquiring equipment repeatedly over the next year or two, financing each purchase as a separate transaction is slower and less efficient than it needs to be.
A master facility solves that. Instead of underwriting one purchase, the lender approves a total financing line up front, and the company draws against it in stages as the equipment needs come up. We recently structured exactly this kind of arrangement for a multi-location healthcare group. The facility was approved with an initial tranche of one million dollars funded to cover their immediate equipment needs, and five million dollars in additional availability sitting ready for them to draw as they continue to expand.
The Advantage: Speed and Certainty on Every Purchase
The advantage is speed and certainty on every purchase after the first. The heavy underwriting happens once, at the front end, when the total facility is approved. After that, each new equipment acquisition is a draw against an already-approved line rather than a brand new application, so the company can move quickly when they find the equipment they need, and they already know the capital is there.
For a business in growth mode, that combination of pre-approved capacity and fast execution is often worth more than shaving a little off any single transaction.
Who This Fits
This structure fits companies that are scaling deliberately, opening locations, adding capacity, or building out over time, and want their financing to keep pace rather than restart with every purchase. The facility flexes with the business.
As availability gets used, it can often be revisited and expanded, so the financing grows alongside the company rather than capping it.
Financing a Plan, Not Just a Machine
If your business is in a growth phase and you are looking at a series of equipment purchases rather than a single one, a master facility is worth understanding. It is the difference between financing a machine and financing a plan. Transactions up to $5 million plus.
Frequently Asked Questions
What is a master facility?
A master facility is a total equipment financing line approved up front. Instead of applying separately for each purchase, the company draws against the approved line in stages as equipment needs come up.
How is it different from financing a single piece of equipment?
A standard financing deal covers one purchase. A master facility covers a series of purchases over time. The underwriting happens once when the facility is approved, so each later purchase is a draw against an approved line rather than a new application.
Who is a master facility best for?
Companies in a growth phase that expect to acquire equipment repeatedly, for example those opening locations, adding capacity, or building out over time.
Can the facility grow as the company grows?
Often yes. As availability is used, the facility can typically be revisited and expanded so the financing keeps pace with the business.
Ready to structure your equipment growth plan?
iLease Capital builds master facilities for companies in acquisition mode, whether you are a multi-location operator, a practice adding clinical systems, or a manufacturer scaling production. Financing up to $5 million plus.
All financing subject to credit approval. Not a commitment to lend. Information in this article is general in nature.