Models
Square D QED-2 Switchboard Financing
A switchboard quote on the table means a project is close to ordering, and that is exactly when financing should already be lined up. Square D QED-2 switchboard financing runs on a 24 to 48 hour approval process for transactions up to $400,000, so the PO goes out the same week the contract is signed. No waiting for the lender review to delay a production slot that is already booked months out.
The Square D QED-2 is a front-accessible, UL 891 listed switchboard system serving service entrance and distribution applications from 800A through 4000A. It accepts Square D PowerPact and I-Line branch circuit devices and is configured at the factory for specific project one-lines. The QED-2 platform is long-established in commercial construction and is common in office buildings, retail centers, healthcare facilities, and light industrial buildings across the country.
QED-2 Project Scope And Typical Price Points
QED-2 switchboards range from straightforward 800A service entrance sections with a handful of branch breakers to large 3000A main switchboards with dozens of I-Line branch circuits for a multi-tenant building or campus distribution point. A typical commercial project switchboard runs $60,000 to $200,000 depending on main ampere rating, the number and size of branch devices, metering provisions, and the bus configuration.
Projects that include both the QED-2 switchboard and downstream Panelboard Financing off the same main bus often have a combined equipment invoice typically $150k to $350k all-in. Financing the total distribution package under one structure reduces the administrative overhead for the contractor and provides one clean monthly payment. We handle the combined panelboard and switchboard package regularly.
Used QED-2 switchboards are available from electrical surplus dealers when buildings are demolished or service entrance equipment is upgraded. Well-maintained used units have real secondary market value. We finance used switchboard equipment when the unit has been inspected and tested, and the acquisition savings often make total financing cost competitive with new equipment financing.
Primary Buyers For QED-2 Financing
Commercial electrical contractors doing tenant improvements, ground-up commercial construction, or building electrical service upgrades are the most frequent users. A contractor installing a 2000A QED-2 for a retail anchor tenant in a shopping center is looking at $120,000 to $180,000 in switchboard cost alone. Financing that purchase against the executed subcontract keeps the contractor's line of credit available for other projects.
Building owners and property managers upgrading aging switchgear in an occupied building face a capital expenditure that does not directly generate revenue but is essential to maintain tenants. Financing over 48 to 60 months turns a large one-time hit into a predictable operating cost. Commercial real estate and development operators find that equipment financing fits cleanly into a building's operating budget structure.
Government and institutional buildings replacing obsolete switchboards also use this program. Government and municipal buyers appreciate the ability to spread capital cost across budget years. Equipment financing for public entities is structured as a tax-exempt municipal lease in many states, which can reduce the effective financing cost compared to a standard commercial lease.
Application To Funded In About Two Weeks
The application is one page. Three months of business bank statements come with it. No tax returns required for deals under $400,000. We return a credit decision in 24 to 48 hours. Documentation execution follows approval, and funding to the vendor happens within the next several business days. Total elapsed time from first submission to funded is about two weeks on a clean file.
If the project has a long factory lead time and requires a deposit payment months before delivery, our progress and deposit financing funds the deposit now and the delivery balance when the switchboard ships. The lender is not paying for something that has not been delivered; the advance is secured by the existing purchase order and the creditworthiness of the buyer.
For contractors comparing an equipment lease versus a loan for the switchboard purchase, the key question is whether you want to own the asset at end of term and how ownership structure affects your tax position for the year. We can model both options and let you make the call.
New Vs. Used QED-2 Switchboards
New factory-configured QED-2 switchboards carry Schneider Electric factory warranty and are built to the specific project design. The factory delivery window for a configured QED-2 is generally four to twelve weeks depending on order volume and customization. Ordering early with a deposit preserves the production slot.
Surplus QED-2 switchboards from building demolitions or service upgrades are available through electrical surplus dealers and sometimes directly from contractors who have excess gear. A surplus unit must be tested and certified before financing is available. Used electrical distribution equipment in good condition can save 30 to 50 percent versus new factory pricing, which makes total financing cost substantially lower for buyers who can work from surplus inventory.
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 Square D QED-2 Switchboard Financing
Straight answers before you send the equipment file.
Can I finance a QED-2 switchboard for a project where I am the general contractor, not the electrical sub?
Yes. General contractors financing switchgear they are purchasing directly is a standard transaction. The financing is on the GC entity and the switchboard is the collateral. The fact that an electrical sub will install it does not affect the underwriting.
Our existing QED-2 is ten years old and we want to add sections. Can we finance the additional sections?
New sections added to an existing lineup qualify as new equipment and can be financed on a standard application. The new sections are the collateral. The existing switchboard is separate from the financing transaction on the new sections.
Is there a minimum credit score requirement for the application-only program?
We do not publish a hard minimum score. Credit quality is evaluated holistically, including the business bank history, time in business, and the nature of any negative items. B and C credit situations are reviewed on their merits. Submit the application and let us evaluate the complete picture.
Can I finance a QED-2 for a rental property I own through an LLC?
Business entities including real estate LLCs can finance equipment. The entity enters the financing agreement and the equipment is the collateral. Rental property LLCs are acceptable borrowers when the LLC has a documented operating history and bank account. Personal guarantee from a principal is typically required for smaller LLCs.
We lost a project and have a QED-2 sitting in the warehouse. Can we use it as collateral for working capital?
A sale-leaseback on the switchboard converts the asset value to working capital. The switchboard is sold to the lender and leased back to your company. You have the cash and keep the asset in your control. Bring us the switchboard details and we can structure the transaction.
Review The Square D QED-2 Switchboard 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.