Equipment Financing
0% Down Available — All Systems
Axiant Partners finances pallet racking systems from all major manufacturers — Interlake Mecalux, Ridg-U-Rak, Lyon, Dexion, and more. 0% down for qualified borrowers. Terms 36–84 months. Landlord waivers handled.
- ✓ 0% down for qualified borrowers
- ✓ All racking types — selective to automated
- ✓ Landlord waiver assistance available
- ✓ Owned or leased buildings
- ✓ Decision in 24–48 hours
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Pallet Racking Financing — Complete System Guide
Selective racking at $8,000–$80,000, drive-in/drive-through at $15,000–$120,000, push-back at $20,000–$150,000, and pallet flow at $25,000–$200,000+. Key financing note: racking attached to a building may require a landlord waiver before lenders will fund.
Key Facts: Pallet Racking Financing
- Selective Racking: $8,000–$80,000 per system | Most common type
- Drive-In/Drive-Through: $15,000–$120,000 | Best storage density without automation
- Push-Back Racking: $20,000–$150,000 | LIFO high-density storage
- Pallet Flow: $25,000–$200,000+ | FIFO for perishables/pharma
- Vertical Carousels: $30,000–$120,000 per unit | Automated storage
- Key Brands: Interlake Mecalux, Ridg-U-Rak, Lyon, Unistrut, Dexion
- Critical Note: Racking in leased buildings requires landlord waiver for lender approval
Pallet Racking Financing — The Real vs. Personal Property Issue
The most important thing to understand about financing pallet racking is the real property vs. personal property question. Equipment financing (loans and leases) applies to personal property — items you can move. Real property is land and anything permanently attached to it (including fixtures). When racking is bolted to a concrete floor and potentially tied to the building structure, it occupies a legal gray zone.
In practice, pallet racking is almost universally treated as personal property by both borrowers and lenders — but lenders financing racking in a leased building will require a landlord waiver before funding. The landlord waiver is a contractual document in which the building owner acknowledges that the racking belongs to the tenant, not the building, and the landlord waives any claim to the racking in the event of lease termination or default. Most commercial landlords sign these readily — it's a standard document in warehouse leasing — but getting it signed before applying for financing saves time.
If you own the building, no landlord waiver is needed. If you're financing racking as part of a broader warehouse buildout (fixtures, HVAC, electrical — often called a leasehold improvement), a real estate loan or SBA loan may be more appropriate than equipment financing.
Related: Forklift Financing Guide | Warehouse & Material Handling Financing | Toyota Forklift Financing | Crown Forklift Financing | Hyster-Yale Financing
Pallet Racking System Prices by Type
| System Type | Brands | System Cost | Storage Density | Best Application |
|---|---|---|---|---|
| Selective Rack (single-deep) | Interlake Mecalux, Lyon, Ridg-U-Rak | $8,000–$50,000 | Baseline | Diverse SKUs, any operation |
| Selective Rack (double-deep) | Interlake Mecalux, Dexion | $15,000–$80,000 | +25% vs single-deep | High-volume, limited SKUs |
| Drive-In Rack | Ridg-U-Rak, Unistrut, Lyon | $15,000–$80,000 | +30–40% vs selective | Single-SKU cold storage, LIFO |
| Drive-Through Rack | Interlake Mecalux, Dexion | $20,000–$120,000 | +30–40% vs selective | FIFO high-density, perishables |
| Push-Back Rack | Interlake Mecalux, Ridg-U-Rak | $20,000–$100,000 | +35–45% vs selective | LIFO, 2–6 pallet deep lanes |
| Pallet Flow Rack | Interlake Mecalux, Lyon | $25,000–$200,000+ | +40–60% vs selective | FIFO for food, pharma, beverage |
| Vertical Carousel | Hänel, Kardex Remstar | $30,000–$120,000/unit | Maximizes vertical space | Small items, parts, documents |
Selective vs. Drive-In vs. Push-Back Racking Comparison
| Factor | Selective Rack | Drive-In Rack | Push-Back Rack |
|---|---|---|---|
| System Cost (medium warehouse) | $8,000–$50,000 | $15,000–$80,000 | $20,000–$100,000 |
| Individual Pallet Access | 100% — every pallet accessible | Last in, first out only | Last in, first out |
| Storage Density | Baseline | +30–40% | +35–45% |
| SKU Variety Supported | Unlimited | Limited (1–2 SKUs per lane) | Moderate (2–4 SKUs per lane) |
| Landlord Waiver Required | Yes (leased building) | Yes (leased building) | Yes (leased building) |
| Forklift Type Required | Standard counterbalanced | Specialized drive-in rated | Standard reach truck |
| Best Application | Most warehouses — general use | Cold storage, single-SKU | High-density, LIFO operations |
| Financing Availability | Easiest — most lenders | Good | Good |
Major Pallet Racking Brands and Manufacturers
Interlake Mecalux is the world's largest pallet racking manufacturer, with operations across North America, Europe, and Latin America. Their product range covers every racking type from basic selective to fully automated storage and retrieval systems. Interlake Mecalux racking is widely recognized by equipment lenders and has strong secondary market values for used components.
Ridg-U-Rak (North East, Pennsylvania) is a major US manufacturer known for high-quality structural racking. Lyon Industries (Montgomery, Illinois) produces a broad range of storage products including pallet racking, shelving, and lockers. Unistrut (NCI Building Systems) makes both traditional pallet racking and the iconic Unistrut channel framing system used in specialty storage applications. Dexion (now part of SSI Schaefer) is a European-origin brand with strong distribution center presence in North America.
For financing purposes, all major brands are treated similarly by lenders — the brand matters less than the system type, installation quality, and whether you own or lease the building.
Pallet Racking Financing Options
| Financing Type | Provider | Best For | Typical Terms |
|---|---|---|---|
| Equipment Loan | Independent lenders, banks | Standard racking purchases | 36–84 months, requires landlord waiver if leased |
| Equipment Lease | Independent lenders | Operations upgrading regularly | 36–60 months FMV or $1 buyout |
| SBA 7(a) Loan | SBA-approved banks | Full warehouse buildout (fixtures + racking) | Up to 10 years, lower rate |
| SBA 504 Loan | SBA CDCs + banks | Owner-occupied building + equipment | 10–25 years, fixed rate portion |
| Line of Credit | Banks | Incremental racking additions | Revolving, prime +1–3% |
| Section 179 | Any lender | Year-end tax planning | Full deduction up to $1.16M (2024) |
Ready to Finance Pallet Racking?
Get matched with lenders who understand racking financing — landlord waivers, owned vs. leased buildings, selective to automated systems. All manufacturers financed.
Frequently Asked Questions — Pallet Racking Financing
Why do lenders require a landlord waiver for pallet racking?
Pallet racking systems are bolted to the floor and sometimes attached to the building structure — making them potentially classifiable as real property (fixtures) rather than personal property (equipment). If racking becomes real property, the building owner (landlord) could have a legal claim to it in a default scenario, which would compromise the lender's ability to repossess the collateral. A landlord waiver is a document signed by the building owner acknowledging that the racking is the tenant's personal property (not a fixture) and waiving any claim to it. Most commercial equipment lenders require a landlord waiver when financing racking in a leased facility.
What is the difference between selective and drive-in racking?
Selective racking (the most common type, $8,000–$80,000 for a system) stores pallets in single-deep or double-deep rows with forklift access from the aisle. Every pallet is immediately accessible, making it ideal for diverse SKU environments. Drive-in and drive-through racking ($15,000–$120,000) stores pallets in deep lanes — 5 to 10 pallets deep — where forklifts drive into the lane to place or retrieve pallets. Drive-in racking maximizes storage density (20–30% more than selective) but sacrifices individual pallet access. It is best suited for operations with limited SKUs and high-volume of the same products, like cold storage for a single product.
Can I finance used or reconditioned pallet racking?
Yes, used pallet racking can be financed, but lenders have more constraints. Most lenders will finance used racking from reputable dealers who provide structural certifications and reconditioned components. Lenders typically require that used racking be certified to applicable ANSI/RMI (Rack Manufacturers Institute) standards. The challenge with used racking financing is collateral valuation — used racking has limited resale value because it's cut to specific dimensions and configurations. Most lenders cap used racking loans at 70–80% of the certified used value. New racking systems from major manufacturers (Interlake Mecalux, Ridg-U-Rak, Lyon) are substantially easier to finance.
How long can I finance pallet racking?
Pallet racking financing terms typically run 36–84 months, with most operations choosing 48–60 months to balance monthly payment with total interest cost. The useful life of steel pallet racking is 20–30 years under normal use, so the financing term is well within the equipment's service life. Longer terms (72–84 months) are available for large systems (over $100,000) but result in the racking being fully depreciated long before the loan is paid off, which can be a concern if you move locations. Some lenders require the loan term to not exceed the remaining lease term on the facility.
What is a pallet flow rack and who needs it?
Pallet flow racking ($25,000–$200,000+) uses gravity-fed roller lanes that gently move pallets from a loading end to a picking end. As a pallet is removed from the front (picking end), the next pallet rolls forward automatically. This first-in, first-out (FIFO) flow is essential for perishable products — food, beverage, pharmaceuticals — where expiration date management is critical. The $25,000–$200,000 price range reflects system size (number of lanes and depth). Pallet flow is substantially more expensive than selective racking but can eliminate the need for pick-and-place forklift operations in FIFO environments.
Do I need to own the building to finance racking?
No. Pallet racking can be financed whether you own or lease the building. If you lease the building, the lender will require a landlord waiver confirming the racking is your personal property. If you own the building, no waiver is needed. Building ownership can sometimes improve terms slightly — it removes the landlord-claim risk entirely — but the difference is minimal for creditworthy borrowers. The more important factor is your business's credit history, revenue, and time in business, not whether you own the real estate.