Sortation systems financing

Sortation systems route parcels and cases to the right lane, dock or order. They are central to parcel, e-commerce and retail distribution operations that need throughput.

Finance a sortation system

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Sortation systems we finance

What to know when financing a sortation system

  • Controls, scanning and software are significant shares of cost.
  • Installed systems are reviewed with the integrator’s scope.
  • Throughput and volume growth support the business case.
  • Funding can follow installation and acceptance on larger projects.

How it’s usually structured

An EFA or lease for the full system, with funding structured around installation on larger projects.

Equipment finance agreement (EFA)You own it from day one. Fixed payments; usually eligible for Section 179.
$1-buyout leaseLease payments, then you buy it for $1. Treated much like an EFA for tax.
Fair-market-value (FMV) leaseLower payments. Return, renew or buy at market value at the end.

What we look at

Time in business, business and owner credit, revenue, and the equipment’s details: make, model, year, serial number and condition. Requests above $1M also need financial statements.

Section 179

Equipment bought with an EFA or $1-buyout lease and placed in service by December 31 may qualify for a first-year deduction. Estimate your tax savings.

Working capital

Need cash for delivery, training, materials or the ramp-up? Add working capital to the same application.

Sortation systems financing questions

Can scanners and controls be included?

Yes, when part of the integrator’s system quote.

Do you finance sorters for regional carriers?

Yes. Parcel and logistics operations are a good fit.

How much can I finance?

LenderCloud finances equipment from $10,000 to $10 million. Requests up to $1 million can usually be decided on the application alone; larger requests need financial statements. All financing is subject to credit approval.

Related

Sortation systems Financing & Leasing | LenderCloud