Money Line Capital: Providing businesses the tools to grow, 10 years and counting

For 10 years, Money Line Capital has operated on the premise of a simple but powerful idea: businesses need the right tools to succeed.

That is why Hardeep Ghatehorde, the company’s founder and vice president of sales, launched Money Line Capital in the first place.

“My background is in real estate and mortgages. When I was doing that, I noticed business owners were approaching me for these types of financial loans and equipment. There was a gap in the (equipment financing) market. So, I began offering that type of financing and opened up Money Line Capital,” he said. “These people needed equipment and I wanted to provide those tools hassle-free and with quick, flexible financing and leasing options — so they could turn those ideas into real businesses.”

Building Businesses from the Ground-Up: From One Truck to Fleets of Vehicles

Equipment financing has become their main offering today, with a focus on servicing the capital-intensive transportation, manufacturing, and construction industries. They specialize in heavy truck and trailer leasing and financing, helping finance seekers with deals ranging from as low as $5,000 to $2 million.

Ghatehorde and his team have supported tens of thousands of business owners in their growth — from helping clients jumpstart their enterprise and shouldering other expenses to building up entire fleets. “We have a lot of clientele who we have brought up from their first piece of equipment to a fleet of 50 trucks. We have helped them from day one of their needs to the point when we are transitioning them off to the big banks,” he said. And they have built strong relationships along the way, mostly through word-of-mouth and referrals about their keen customer-focused attitude.

What’s New for Money Line Capital?

1. Expanding Locations

Money Line Capital’s own growth plan is to expand beyond their head office in Brampton, Ontario and regional offices to build a coast-to-coast, national presence. “We are opening a new office in Winnipeg, and it should be up and running within three to four months,” Ghatehorde said, following up with a Regina office by end of the year and a foothold in Albert and British Columbia after that. COVID-19 travel restrictions have stalled their plans to expand westward, but he is optimistic about the year ahead.

“We already have a location picked out. We simply have to go out there, put pen to paper, finalize things, and open it up,” he said about the Saskatchewan office, which will house brokers under the Money Line Capital brand. The currently company relies on a mix of in-house sales reps and external brokers.

2. Work With More Lenders 

“We’re trying to attract a more lender-based market. Instead of dealing with brokers, we will deal directly with dealerships, our vendor partners,” Ghatehorde said about the company’s shifting priorities this year.

3. Innovate Online Application

The Money Line Capital team is also in the process of overhauling their online application, so that customers can get preapproved in a matter of clicks. This new web tool is expected to roll out in summer 2021.

“While the first (government-mandated COVID-19) lockdown in 2020 slowed down the market, it ramped up over the summer and we had a great end-of-year and last two quarters,” he said, adding the designation of manufacturing as essential was the balm the market and its clients needed to improve conditions.

“After the market reopened after the second quarter, logistics went into overdrive because there was a backlog of shipment,” Ghatehorde explained.

Money Line Capital’s Rate Reduction and Flexibility

In light of the pandemic’s toll on businesses and historically low interest rates, Money Line Capital has reduced their own rates (as low as 3.99%).

“We work with each client to understand what works best for them. We have seasonal payment options. We build the lease agreement or payment agreement around their industry’s working schedule. For example, April and May are the slow months in the forestry industry. So, we can offer flexible payments in those months, so our client is not stretched,” he explained, a level of flexibility that is in high demand in the era of COVID-19.

The pre-COVID-19 projection for capital expenditures on non-residential construction and machinery and equipment in 2020 was a record-high $275.5 billion, with the transportation and warehousing sector driving the overall capital spending with a historic $44.3 billion outlay. However, in summer 2020, Statistics Canada released updated projections for the year, expecting a decrease to $242.6 billion, a drop of 9.5% from 2019. Manufacturers surveyed anticipated an 18.5% decrease in capital spending in 2020, with a notable decline observed in transportation equipment manufacturing (-$774 million). The tumultuous impacts of COVID-19 have also exposed vulnerabilities within manufacturers’ current supply chains.

Ghatehorde said that his company and clients have felt the supply crunch, with diminished inventory as a result of the manufacturing slowdown. “The demand for equipment is incredibly high but it’s been hard to meet that steep demand,” he shared. “There was no brand new equipment being built for large parts of 2020, and everyone had to purchased used, so the used inventory was also in short supply. Clients wanted to upgrade but they couldn’t. But we’re definitely seeing an influx of new equipment this year.”

Money Line Capital’s Strong Relationships with a Wide Vendor Base Benefit Clients

Money Line Capital’s robust relationships with a broad base of vendors have helped to ensure their clients are able to access the equipment they need, even in these scarce market conditions, according to Ghatehorde. It’s what he attributes to the company’s continued success.

“Our vendor base is quite large and we have great access to truck, trailers and heavy equipment at special discounted prices. We work with more dealerships today than we have in the past so we can provide the best inventory to our clients for the best prices,” he said. “If a client can’t find a type of truck, they can always come to us and we can help them source it through one of our vendor partners.”

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Smarter Loans Staff

The Smarter Loans Staff is made up of writers, researchers, journalists, business leaders and industry experts who carefully research, analyze and produce Canada's highest quality content when it comes to money matters, on behalf of Smarter Loans. While we cannot possibly name every person involved in the process, we collectively credit them as Smarter Loans Writing Staff. Our work has been featured in the Toronto Star, National Post and many other publications. Today, Smarter Loans is recognized in Canada as the go-to destination for financial education, and was named the "GPS of Fintech Lending" by the Toronto Star in 2019.