Based in Irvine, Calif., Celtic Commercial Finance has been providing equipment leasing for 27 years and has leased $2 billion in equipment for companies in more than 20 industries. The lender is a wholly owned subsidiary of Chicago-based MB Financial Inc., which has $20 billion in assets. Fifth Third Bancorp acquired MB Financial in May in a $4.7 billion transaction.
When seeking a lease from Celtic Commercial Finance, you need to apply before purchasing any equipment. You choose the vendor and equipment, allowing you to negotiate a price that works for you. But before you purchase, submit an application with Celtic Commercial Finance so you can lease your purchase. You can apply afterward, but could face tax consequences if you bought the equipment before entering into a lease agreement.
Different types of leases offered. There are several different structures of leases from Celtic Commercial Finance:
One-page application. Celtic Commercial Finance’s one-page application is available on its website. In addition to your basic contact information, Celtic Commercial Finance asks for company details as well as a description of the equipment you plan to lease.
Celtic Commercial Finance provides equipment leases to business owners who can’t or don’t want to purchase equipment outright.
|Celtic Commercial Finance: At a glance|
|Loan product||Loan amount||Loan term||APR range/ factor rate||Fees||Time to funding|
|Equipment lease||$100,000 to $10,000,000||2 – 10 years||No APR associated with a lease||Documentation fee of $295 and
one month’s payment due upfront
|3 to 10 business days; or after the equipment is fully installed and operational|
Rates current as of 6/21/2018
|Loan product||revenue||Min. business credit score or personal credit score||Time in business|
|Equipment lease||$20 million to $250 million in annual revenue||Not provided by the lender||3 years|
Celtic Commercial Finance approves leases on a case-by-case basis and the decision mostly relies on your time in business and your company’s credit profile.
Celtic Commercial Finance does not work with restaurants, solar, money services, or oil and gas businesses.
You can complete Celtic Commercial Finance’s application online. Celtic Commercial Finance asks for the following:
Documents needed to apply:
|Variety of lease structures.||You don’t own equipment.|
|No down payment required.||High revenue requirements.|
|Simple application.||Not intended for new businesses.|
Wide span of industries. Celtic Commercial Finance leases equipment, including physical pieces and IT software, to businesses in a variety of industries such as:
Established businesses. Celtic Commercial Finance works with businesses making $20 million to $250 million in annual revenue. Although the company may provide leases to those making more or less, that range indicates lucrative businesses are best suited for leases from Celtic Commercial Finance.
Leasing is not the same as financing. When you lease equipment, Celtic Commercial Finance as the lessor holds the legal title to the equipment and you pay rent to use it over a specified period of time. When you take out a loan to finance equipment, you hold the legal title after you repay the funds loaned to you to purchase the equipment. You would not return the equipment to the lender, but you must return it to a lessor unless you decide to purchase the equipment at the end of the lease. An equipment loan generally requires a down payment, while a lease finances 100% of the cost.
Limited customer service. Celtic Commercial Finance’s toll-free number, (866) 323-5842, goes directly to voicemail. However, a second number, (949) 263-3880, listed on the company’s Frequently Asked Questions page, will put you in touch with a manager who can answer general questions before filling out an application.
Celtic Commercial Finance provides equipment leasing, not equipment financing. This means Celtic Commercial Finance owns your equipment and you pay monthly rent to use it. You wouldn’t have to purchase the equipment outright or make a down payment. However, you would have to return the equipment when your lease ends, unless you decide to purchase it at that point.
Celtic Commercial Finance specializes in middle-market transactions and works with established, profitable businesses. If you’re a new business owner or you’re looking to buy equipment costing less than $100,000, you may want to explore other options to finance your purchase.