Switchgear Equipment
Automatic Transfer Switch (ATS) Financing
The automatic transfer switch is the last thing between a utility failure and a dark building. It monitors the normal source, detects the outage, signals the generator, and transfers the load to emergency power in a time window that ranges from a few seconds to under a second depending on the type and setting. Everything downstream of the ATS, the lights, the servers, the medical equipment, the refrigeration, depends on that transfer happening correctly every time. Financing the right ATS is not a line item to compress.
Transfer switches come in a wide range of types and ratings. Open-transition switches transfer with a momentary interruption, which is acceptable for most non-critical loads. Closed-transition switches briefly parallel the sources to create a make-before-break transfer with no interruption at all, which data centers and hospitals prefer. Static transfer switches operate in milliseconds using solid-state switching, at a much higher cost, for loads that cannot tolerate even the brief interruption a mechanical closed-transition switch creates. The rating range runs from residential under 200A all the way to 4,000A and above for large facility bus ties.
We finance automatic transfer switches for contractors, facility owners, and power system integrators. Minimum $50,000. Application-only up to approximately $400,000. New and used ATS units from recognized manufacturers all qualify.
ATS Types And Specifications
Choosing the right ATS type is a design decision that affects both the cost and the financing structure. The three main types each fit a different application profile.
Open-transition ATS is the standard type for most commercial and light industrial standby power applications. The switch opens the normal source connection, delays briefly for the generator to reach voltage and frequency, then closes onto the generator source. A typical open-transition transfer takes two to fifteen seconds depending on the delay settings. For non-critical loads like commercial lighting, HVAC, and general power, this type is adequate and cost-effective. NFPA 101 and local codes establish the maximum transfer time for life-safety loads, typically ten seconds.
Closed-transition ATS parallels both sources briefly, typically 100 milliseconds or less, before opening the tie to the source being released. The load never experiences an interruption. This type is standard for critical IT loads, healthcare life-safety systems, and any application where a brief power interruption causes problems, such as variable speed drives, process control systems, or medical imaging equipment.
Static transfer switches use silicon-controlled rectifiers to transfer load in one-quarter cycle or less, roughly four milliseconds on a 60Hz system. The cost premium over mechanical ATS is significant, but the speed is necessary for loads that cannot ride through even a single cycle of interruption. The static transfer switches page covers that specific product in more detail.
Manufacturers include ASCO (the 7000 Series and other lines), Russelectric (the RMT series), Generac, and Kohler. Each has specific products for different rating ranges and transition types.
ATS Financing Applications
Automatic transfer switches show up wherever emergency or standby power is required, which covers a broad range of facility types and industries.
Healthcare and hospitals are the most demanding buyers of ATS equipment. NFPA 99 and the NEC require specific ATS types, transfer times, and testing protocols for healthcare emergency power systems. Hospitals buy large quantities of ATS, ranging from small branch circuit panels to large main facility transfer switches. Healthcare and hospitals often finance ATS as part of a broader generator plant upgrade or facility electrical renovation.
Data centers require closed-transition or static transfer capability for IT load protection. A colocation data center with hundreds of customers cannot allow a mechanical interruption on a routine utility test or transfer. Data centers buy ATS in volume as part of power system buildouts, and individual units at the UPS bypass, utility tie, or critical distribution level can each carry significant value.
Government and municipal facilities, including emergency operations centers, correctional facilities, and water utilities, specify automatic transfer switches for standby power systems mandated by local codes. Government and municipal projects are often procured through public bid processes that generate well-documented equipment specifications.
Large campus facilities including universities and commercial real estate campuses also install multiple ATS units throughout their distribution systems, and campus-scale ATS programs can add up to transactions well above the application-only threshold. Commercial real estate and developers building Class A office or mixed-use facilities often include ATS for standby power as a base building standard.
ATS Financing: Application To Funding
Single ATS units at commercial and light industrial ratings typically fall below $100,000. Multiple units purchased together for a large facility project can reach $500,000 or more. For most ATS transactions under $400,000, the application-only path is appropriate.
Application, credit decision, and funding within one to two weeks is the standard timeline. The ATS unit needs to be identified by manufacturer, model, rating, and transition type on the application. A copy of the purchase order or vendor quote is helpful but not always required at application stage.
For buyers with credit challenges, bad-credit equipment financing options are available. The ATS equipment itself holds value as collateral, and a business with bruised credit but a legitimate project and real equipment can get financed with the right structure, which might include a larger down payment, a shorter term, or a higher rate to account for credit risk.
Price This Switchgear Financing Package
Send the quote, seller, lead time, deposit requirement, project location, and the electrical package scope. We will review the structure around the purchase schedule.
Review Switchgear TermsCommon Questions on Automatic Transfer Switch (ATS) Financing
Straight answers before you send the equipment file.
Can we finance ATS and the generator as one transaction?
Yes. A generator and its associated automatic transfer switch can be financed together as a complete emergency power system. Purchasing both from the same vendor simplifies the transaction, but we can package equipment from different suppliers into a single facility.
We need fifteen ATS units across a campus. Can we do one financing application for all of them?
Yes. A campus-scale ATS program with multiple units can be structured as a single transaction or as a blanket facility that draws against individual unit deliveries. If units are arriving over time as buildings are turned over, a draw structure keeps funding aligned with delivery without requiring separate applications for each unit.
The ATS we need is a used unit from a building that was demolished. Is it financeable?
Used ATS from a building demolition project can qualify if the unit comes with documentation covering its manufacturer, rating, and age, and if the source is a reputable electrical equipment dealer. An ATS removed from a demolished building and sold without documentation or testing records is harder to finance than one from a proper electrical equipment dealer with test records.
We have B credit because of a slow-pay history two years ago. Can we still get ATS financing?
We work with B and C credit. A slow-pay history that has been resolved and a business that is currently current on obligations can get approved, potentially with a larger down payment, a slightly higher rate, or a shorter term than prime credit would receive. The application is worth submitting.
Review The Automatic Transfer Switch (ATS) Financing Package
Send the equipment quote, seller, lead time, deposit schedule, and project location. The finance desk will review the package against the actual procurement calendar.