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Private equity-backed and middle-market companies must carefully manage their debt-to-equity ratios to maintain financial stability and creditworthiness. High capital expenditures on equipment can impact financial leverage, limiting borrowing capacity and future investment potential. Here’s how leasing can help businesses optimize their capital structure while maintaining financial flexibility.
The Challenge: Managing Debt While Investing in Growth
Companies need to maintain a healthy balance sheet while funding growth initiatives.
High capital expenditures (CapEx) on equipment can increase financial leverage, potentially affecting credit ratings and borrowing capacity.
Traditional financing options may require large upfront payments, tying up working capital.
The Solution: Leasing as a Strategic Financial Tool
Leasing provides an effective way for private equity and middle-market firms to acquire essential equipment without overburdening their balance sheets. We frequently assist companies in navigating these financial challenges by offering leasing solutions that provide these key benefits:
Key Benefits of Leasing:
Off-Balance-Sheet Financing – Leasing keeps equipment expenses off the balance sheet, helping to maintain favorable debt-to-equity ratios.
Preserve Borrowing Capacity – Avoid unnecessary debt accumulation and retain access to credit lines for strategic investments.
Predictable Expense Management – Fixed lease payments provide cost certainty, helping businesses manage cash flow efficiently.
Flexibility for Future Upgrades – Leasing allows businesses to replace or upgrade equipment without the financial burden of ownership.
How CoreTech Leasing Helps
At CoreTech Leasing, we understand the financial considerations that private equity and middle-market companies face. Our leasing solutions provide the flexibility needed to optimize capital structure without sacrificing growth potential.
Why Partner with CoreTech?
Expertise in structuring leases to support financial objectives
Vendor-neutral financing for a wide range of industries
Flexible lease terms that align with business goals
End-of-term options that support long-term capital strategy
A relationship-driven approach to leasing that prioritizes financial stability
A commitment to offering customized solutions that align with your growth strategy
Optimize your financial leverage while maintaining operational efficiency. Contact info@coretechleasing.com to learn how leasing can support your capital strategy.