BioHiTech Global Teams Up with Crestmark and US Equity Funding to Offer Customers Equipment Lease Financing for its Revolution Series Digesters
CHESTNUT RIDGE, N.Y., Feb. 4, 2020 /PRNewswire/ -- BioHiTech Global, Inc. (“BioHiTech” or the “Company”) (NASDAQ: BHTG), a technology and services company that provides cost-effective and sustainable waste management solutions, announced today that the Company has teamed up with Crestmark, a leading business to business lender, and US Equity Funding, a full service 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.”
Crestmark provides innovative financial solutions for businesses nationwide. Financing solutions include asset-based lending, accounts receivable financing, lines of credit, term loans, factoring, machinery/equipment financing and equipment leasing. Crestmark has extensive experience in helping many industries including transportation, manufacturing, staffing, petrochemical, renewable energy, government contractors, hospitality/hotels, insurance agencies, and technology hardware/software. Crestmark, a division of MetaBank®, is headquartered in Michigan, with additional offices in California, Florida, Louisiana, Tennessee, and Illinois; representatives nationwide; and a Canadian foreign representative office. www.crestmark.com
About US Equity Funding, LLC
US Equity Funding, a Boston based company, is a full service commercial financing firm that provides lending, leasing and advisory services to small and middle market businesses. The company offers unparalleled expertise in the commercial finance industry and brings over 100 years of combined experience in the market-place, providing in-depth knowledge relative to all aspects of commercial financing. The company’s knowledge and expertise in this field facilitates customized financing solutions.
About BioHiTech Global
BioHiTech Global, Inc. (NASDAQ: BHTG), is changing the way we think about managing waste. Our cost-effective technology solutions include the patented processing of municipal solid waste into a valuable renewable fuel, biological disposal of food waste on-site, and proprietary real-time data analytics tools to reduce food waste generation. Our unique solutions enable businesses and municipalities of all sizes to lower disposal costs while having a positive impact on the environment. When used individually or in combination, our solutions lower the carbon footprint associated with waste transportation and can reduce or virtually eliminate landfill usage. For more information, please visit www.biohitech.com.
Forward Looking Statements
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements, including statements about the benefits of this leasing program, potential improvements to cash flow, and the growth of its digester business, are based on many assumptions and estimates that may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of BioHiTech Global, Inc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BioHiTech Global, Inc. assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as “Risk Factors” in our filings with the Securities and Exchange Commission (“SEC”). There may be other factors not mentioned above or included in the BioHiTech’s SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. BioHiTech Global, Inc. assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.
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SOURCE BioHiTech Global, Inc.