Financing
The Lease Process
General Requirements For A Standard Lease
(Up to $50,000 – Requires Application Only)
FAQs
Frequently Asked Questions
Start-Up Business:
Start-ups can only be done if the individuals show the ability to make the payments weather the current business makes money or not. Requires personal financial statements and tax returns. Applicant must have a background in the industry.
Dealer(s):
You pick which dealer(s) you want to use. And, you can have more than one dealer.
Name Change:
It is not unusual for a business to change its name. If the current business name is less than two years old, please provide us with the previous business name and bank reference information.
Equipment:
We only need a general equipment list and amount to process the application. Upon approval, an exact equipment list and pricing is needed to prepare lease documents. It is a good idea to send in the application while you finalize your equipment list.
Personal Guarantee(s):
Business under five years old requires personal guarantee(s) of “key” owners. Corporations may elect to have one person authorized to sign the lease. Personal guarantees are not required on public companies or well established businesses with Dunn & Bradstreet ratings. Each request to have the guarantee waived is reviewed on an individual basis
Insurance:
May or may not be required to fund. However, if the equipment is damaged, stolen or destroyed, you are still liable for payments. Required or not, you should insure your equipment.
Rates:
Rates are contingent upon perceived risk. The more established the business, the lower the rate. There are no hard and fast rules. We do not charge for the approval process. There is no obligation if you don’t want to continue the lease process. Payment quotes are given after the credit process is completed. A general quote is available upon request.
I’ll Get The Best Rate By Shopping Companies:
Almost always untrue. In fact, shopping to multiple brokers can cause damage to your credit report and result in a rejection. Direct lenders almost always have the best rates and don’t “shop” the lease causing credit damage.
New Ownership:
New owners do not necessarily mean you are a “start up” business. Simply list your previous business name or provide us with a separate cover letter telling us about the changes. Also, provide us with bank and trade references from the previous business.
Collateral:
The equipment is the collateral in most cases. However, a newer business or weaker credit may require additional collateral for approval. Accepted collateral is generally – Cash Down, CD’s, Cross Guarantee From A Related Business, additional A/V equipment, etc.
Personal Lease:
There are no “personal” leases. Equipment leasing is for businesses only. There is no correlation between a car lease and a business equipment lease.
Business Credit Makes Up For Poor Personal Credit:
Since most companies are closely held, clean personal credit is required. There are some exceptions. Ask if you are not sure.
Tax Returns Don’t Show A Profit:
Remember, we do not look at financial statements in most cases. Your business is qualified through bank and trade references only.