North Mill Equipment Finance LLC announced it has restructured its working capital solution to make it more competitive with other, less cost-effective options on the market.

The financing arrangement, called Cash Out, allows a customer to borrow the equity of paid-up business equipment and channel the proceeds back into the company. Although similar in concept to a sale leaseback, Cash Out is structured as a loan. It delivers a reprieve for borrowers looking for a less expensive alternative to finance day-to-day operating expenses.

“There are many ways a company can obtain working capital,” said Paul Cheslock, Vice President of Customer Relations, North Mill. “Some of the more common include a merchant cash advance (MCA), a revolving line of credit and accounts receivable factoring. And while they all fill the same need, they are not created equal. Cash Out in particular offers a long list of customer benefits including better rates, monthly vs. weekly payments, and terms up to 60 months. It’s a powerful tool for our referral agent partners looking to grow their customer base.”

According to Cheslock, the product’s loan-to-value ratio was restructured to enable customers to borrow a larger percentage of equity from an unencumbered asset. One of the most significant advantages of Cash Out is that it includes an early pay-off feature. Customers can pay off the loan without premium or penalty after 18 consecutive, on-time payments – a benefit that other products do not offer.

“The product is simple and straightforward. There are no fees tied to accounts receivable, invoices or credit card sales,” said Cheslock. “What’s more, the equipment that’s used for the loan stays put on site, so business operations remain uninterrupted. And if that were not enough, the borrower retains title.”