1Step one.  Apply Now, it only takes minutes

2Step two.  We evaluate your equipment financing needs

3Step three. Get Approved Receive Financing

Get RailCar Leasing and Financing through EquipmentLend.

Get RailCar Leasing and Financing through EquipmentLend.

Get flexible leasing with options that accommodate your specific needs. Each of our financing products offers valuable funding features that can help you accomplish your business goals.

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  • RailCar Leasing and Financing
    Up to $5,000,000
  • Decision as fast as 72 hours and financing in as few as 5 days
  • Term lengths from 36
    months up to 10 years

Get access to the leasing or financing of RailCar when you need it.

  1. Railcar Leasing: This involves a company paying a periodic fee to a leasing company to use their railcars for a specific period of time. The lessor (the company that owns the railcars) maintains ownership throughout the lease period. At the end of the lease term, the lessee (the company leasing the railcars) typically has the option to return the railcars, renew the lease, or in some lease structures, purchase the railcars. Railcar leases can be either operating leases (shorter term, often flexible with the ability to return cars early) or capital leases (longer term, often with a buyout option at the end).
  2. Railcar Financing (Railcar Loans): This involves a company borrowing money to purchase railcars outright. The lending institution typically requires the railcars to serve as collateral for the loan. The company repays the loan over a specified period of time, with interest. At the end of the repayment period, the company owns the railcars.

Get RailCar Leasing and Financing through
EquipmentLend to:

  • AutoRacks

  • Tank Cars

  • Flat Cars

  • Box Cars

  • Covered Hoppers

  • Locomotives

  • Open Top Hoppers

  • Gondolas

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Qualifications for a RailCar Leasing and Financing – 48 to 72 Hour Approval

$500,000 Annual or More

ANNUAL REVENUE

680 Credit Score or Better

CREDIT SCORE

Minimum 36 Months in Business

TIME IN BUSINESS

*Based on past EquipmentLend Customers

RailCar Leasing and Financing Frequently Asked Questions

  1. Railcar Leasing: This involves a company paying a periodic fee to a leasing company to use their railcars for a specific period of time. The lessor (the company that owns the railcars) maintains ownership throughout the lease period. At the end of the lease term, the lessee (the company leasing the railcars) typically has the option to return the railcars, renew the lease, or in some lease structures, purchase the railcars. Railcar leases can be either operating leases (shorter term, often flexible with the ability to return cars early) or capital leases (longer term, often with a buyout option at the end).
  2. Railcar Financing (Railcar Loans): This involves a company borrowing money to purchase railcars outright. The lending institution typically requires the railcars to serve as collateral for the loan. The company repays the loan over a specified period of time, with interest. At the end of the repayment period, the company owns the railcars.

Just like any other type of leasing and financing, railcar leasing and financing have several requirements. Here’s a general outline of what lenders or leasing companies might require. However, please note that specific requirements can vary based on the company or lender:

  1. Creditworthiness: Lenders or leasing companies will look at your credit history, which includes both your business’s credit score and potentially the personal credit scores of the business owners. A strong credit history suggests that you’re likely to fulfill your financial obligations.
  2. Financial Statements: Lenders or leasing companies typically request financial statements for the past few years. This includes balance sheets, income statements, cash flow statements, and potentially other documents. These help the lender assess your business’s financial health and its ability to make regular payments.
  3. Business Plan: In some cases, especially for new businesses, lenders might request a business plan. This can help them understand your business model, market, competition, and financial projections, which can give them more confidence in your ability to repay the loan or lease.
  4. Proof of Insurance: Lenders or leasing companies may require proof of insurance on the railcars. The specifics can vary, but this usually involves insurance that covers damage, loss, or liability related to the railcars.
  5. Specific Equipment Information: The lender or leasing company will need specific information about the railcars you intend to lease or purchase. This could include the type, manufacturer, model, condition, and price of the railcars.
  6. Use of Equipment: Lenders or leasing companies may ask how the railcars will be used. This helps them understand the risk associated with the lease or loan.
  7. Legal Compliance: Businesses should be in compliance with all relevant laws and regulations related to operating railcars. This includes safety standards, environmental regulations, and other relevant industry regulations.
  8. Down Payment: In some cases, especially for loans, a down payment might be required. The amount can vary widely, but it’s usually a percentage of the purchase price of the railcars.

The process usually begins with an application, after which the lender or leasing company will review these factors to decide whether to approve the application. In some cases, the lender may ask for additional information or documentation based on the specifics of your business or the railcars you intend to lease or finance. It’s always a good idea to consult with a financial advisor or directly with the lender or leasing company to understand their specific requirements.

  1. Apply for Financing or Lease: You will need to provide information about your business, its financial health, the specific railcars you want to finance or lease, and how you plan to use them. The lender or leasing company will evaluate your application and, if approved, will provide the funds or lease agreement necessary for you to acquire the railcars.
  2. Purchase or Lease the Railcars: Once the financing is approved, you can proceed to purchase or lease the railcars. If you’re leasing, you’ll need to make regular payments according to your agreement. If you’ve taken a loan, you’ll need to make regular payments towards the principal and interest.

Remember, while railcar leasing and financing can provide businesses with the tools they need to operate without a large upfront investment, it’s important to weigh the costs and benefits and ensure it fits within your business’s financial strategy. Consulting with a financial advisor or accountant can help you make the best decision for your business.

Railcar leasing and financing are used for the acquisition and use of railcars for business purposes, especially within the rail freight industry. Here are some specific uses:

  1. Expansion of Fleet: Companies can use railcar leasing or financing to expand their existing fleet of railcars. This allows them to increase their cargo transportation capacity without the need for a large, upfront capital expenditure.
  2. Replacement of Outdated Equipment: Railcars can become outdated or might be less efficient than newer models. Leasing or financing allows companies to replace their older railcars with newer, more efficient models.
  3. Flexibility in Operations: Railcar leasing, in particular, provides flexibility to businesses. Companies can lease railcars for a specific period, which is useful when there’s a temporary increase in demand. Once the lease period is over, the railcars can be returned, reducing the overall cost compared to purchasing.
  4. Preservation of Capital and Cash Flow Management: Rather than making a substantial upfront investment to purchase railcars, businesses can spread the cost over a longer period through leasing or financing. This helps in preserving capital for other business needs and assists with cash flow management.
  5. Maintenance and Repair Services: Many railcar leasing agreements include maintenance and repair services. This can reduce the company’s responsibility for upkeep and potentially reduce overall maintenance costs.
  6. Regulatory Compliance: New railcars will typically comply with current safety and environmental regulations. This is particularly important in industries that transport hazardous materials and must adhere to strict regulatory standards.
  7. Diversification of Equipment: Leasing or financing can enable a business to afford a diverse range of railcars for different types of cargo. This can be beneficial in terms of meeting varying customer demands or dealing with fluctuating market conditions.

In summary, railcar leasing and financing are used as strategic tools by businesses to manage their financial resources effectively, stay up-to-date with the latest railcar models, maintain regulatory compliance, and ensure they have the necessary equipment to meet their operational requirements.

 

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