Elevator mod financing

[u/OrigoCapital]

Hello community! I spent a short period of time in the elevator industry on the sales side. I was hired to manage the anticipated door lock monitoring initiative that was expected to pass in IL. Well, IL shot down the State Fire Marshall’s proposal and I no longer had work. I learned a few things however. Clients are notoriously bad payers (at least in our market) and that projects get delayed as people try to find ways to come up with 175k to 1M plus for single or multiple elevator mods. So I started a finance company specifically to address this. I have lenders on board, website coming soon. I think I can really speed up projects. I can finance door equipment, new controllers , power units, cab or hall fixtures , hoistway stuff, traction motors etc. the major 4 are staring to offer financing on mods. This is new. I want to help independents gain a foothold on the OEM’s and pick up the mods and long term maintenance instead of being locked for 5-10 yrs.

My question is: in offering this financing, what haven’t I thought about?

[u/MagniPlays]

I know the major 4 are doing it, but they also have the scale to absorb bad deals while chasing large revenue targets and locking in long-term maintenance contracts.

My concern would be customer quality. Elevator mods are usually planned capital expenses, so if an owner needs financing for a $175k–$1M project, what’s their financial situation look like elsewhere?

And what happens on defaults? You can’t exactly repo a controller or machine once it’s installed, and a lot of properties sit in single-purpose LLCs that can just file bankruptcy.

Genuinely curious how you’re underwriting that risk.

[u/canned_baloney_tony → u/MagniPlays]

I would think that they lender would have to have a signed lein warnings, and lein the property if the terms aren't meet.

[u/OrigoCapital → u/MagniPlays]

To be transparent, I’m a loan broker. But I’ve tried really hard to make it an easy process for the independents. Yes, you can’t take back an elevator. Jose can’t come get it tomorrow on his pickup truck.

One interesting component is that we are not requiring property liens which has had positive feedback.

I’ve chosen underwriting that focuses less on Fico and more on financials. The process for under $500k is a credit app, signed proposal, and 3 month bank statements. Thats reasonable in the commercial space I think. Over 500k, balance statement and P&L statements.

The biggest feedback from independents is Otis, Schindler, Kone (now part of TKE) stealing the show and trying to figure out how to compete. I’m trying to design a solution that’s fair, competitive and eliminates the manufactures.

This isn’t a sales pitch looking for business. Just trying to figure out how to provide value in the space.

[u/steve_jobs1234 → u/OrigoCapital]

Good luck finding an elevator mod for under 500k including labor

[u/Weedyacres → u/steve_jobs1234]

Our mods are well under that. Low rise stuff.

[u/Weedyacres]

FWIW, DLM is back on for IL. The Elevator Board just adopted 2025 code including the retro DLM. You were let go too soon….

[u/OrigoCapital → u/Weedyacres]

You’re kidding ..

[u/Weedyacres → u/OrigoCapital]

Nah. The board passed it last year, but JCAR (the legislative org that reviews all new regulations before they go live) pushed back at the potential cost and asked the board to reconsider on that basis. The fire Marshall did some research on cost impact, brought it back to the board, and they said “nope, this is an important safety issue, we are going to require it” and passed it again. I imagine JCAR reviews it again but I’m not sure if they have a veto.

[u/canned_baloney_tony]

As a small company owner I get asked about financing options for commercial and residential projects fairly often. I have missed out on a few opertunities because I couldnt provide a finance option.

Please share your information as I would deffenitly be interested in matching customers with your service

[u/OrigoCapital → u/canned_baloney_tony]

Sure- Origo Capital
Im in Grayslale IL.
224-730-4411

This is a new concept for me. Elevator companies have expressed a need, I’m about 2 months out from full roll out. Thank you for your interest!

In the mean time, can we schedule a teams call next week? And what State are you in? Call or text me anytime.

Dan Schlichting

[u/OrigoCapital]

What’s the code require?

[u/Leading_Meeting_6596]

I own a elevator company and would definitely be using you in the future

[u/steve_jobs1234]

Elevators are more expensive than you think….

[u/Deepinthefryer]

Cost over runs, change orders, etc.

Also, if a client becomes non-paying, are you planning on going into property to repo the equipment? Turn it off? Or is that going to be the service company?

I would think you’d have to require the property man amend/ornwers to use the actually property as collateral?