BioHiTech Inks Program Agreement with Crestmark & US Equity Funding
FEB 5, 2020 - 6:55 am
BioHiTech Global, a technology and services company that provides cost-effective and sustainable waste management solutions, has teamed up with Crestmark and US Equity Funding, a commercial financing firm, to begin offering equipment lease financing to new Revolution Series Digester customers.
BioHiTech will begin utilizing lease financing through Crestmark and US Equity Funding in place of the company’s traditional rental agreements for new Revolution Series Digester customer contract applications that receive business credit approval from either leasing company.
The new financing program is expected to significantly improve cash flow by enabling BioHiTech to monetize approved contracts upfront. In the first nine months of 2019, approximately 84% of new digester contracts delivered were under traditional rental agreements financed by the company entirely through its own working capital.
“Teaming up with Crestmark and US Equity Funding is an important part of our growth strategy for 2020 and beyond,” stated Frank E. Celli, CEO of BioHiTech Global. “As we continue to gain traction in the market by providing a state-of-the-art sustainable food waste disposal solution, managing cash flow and optimizing working capital is critical to our growth plans. By offering this financing option to qualified customers from our financing partners, we can monetize our typical five-year lease immediately at a very attractive rate, providing us with more capital to invest back into the business to fuel further growth. With a large majority of our business coming through leasing this past year, we see this arrangement having the potential to improve cash flow by as much as $1.5 million or more in 2020 based on historical digester deployments. We are confident that this leasing program will help us accelerate growth and significantly improve our financial results in the coming years.”
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