Depending on the dollar size of the equipment, the equipment type and your credit profile, you can secure equipment lease or financing with just a credit APPLICATION ONLY. The benefit of dong so, is it is easier and faster.
The draw back to APPLICATION ONLY approvals is that generally those lease requests that are backed with customer FINANCIAL STATEMENTS are cheaper. That is assuming the financial statements show a healthy company.

If you are a NEW BUSINESS, you will almost always have to provide financial statements.

In most cases the business owner(s) will personally guarantee the lease. If the lease request must stand on the credit of the CORPORATION ONLY, then the business must meet certain guidelines. The guidelines are generally called "CORP. ONLY GUIDELINES."

You can go to CREDIT DOWNLOADS to get copies of each of the sections described below.

___________________

APPLICATION ONLY

Download a blank CREDIT APPLICATION.

A typical customer profile would include many of the characteristics described below:

• Company in business for over two (2) years.
• Checking account has been open a minimum of two (2) years and has maintained an average balance of a low five (5) figure or better
• Bank and other contractual creditors are paid as agreed.
• Comparable credit is established.
• Personal home ownership is important.

Personal guarantees are usually required for closely held companies or in those cases where there are significant transactions between the stockholders and the company.

Commitment periods are normally 60 days from the date of approval. Longer periods may be requested for delayed equipment deliveries.

Information Required for Credit Approval (Application Only)

• Equipment description and business purpose for the equipment acquisition.
• Bank and trade references.
• Summary including the who, what, when, where, why and how of the applicant's business.

___________________

FINANCIAL STATEMENT DISCLOSURE

A "typical" customer profile would include at least half of the characteristics described below. These rules do NOT apply to EARLY STAGE AND START UP BUSINESSES.

• Company in business for over five (5) years.
• Profitable operations with adequate cash flow (at least 1.25 times the current maturity of Long Term Debt - historical and pro forma).
• Tangible net worth at least 4 times the amount being financed.
• Trends of sales, profits, etc. are level or up.
• Debt to tangible net worth of 4.0 to one or less.
• Positive working capital.

Personal guarantees are usually required for closely held companies or in those cases where there are significant transactions between the stockholders and the company.

Commitment periods are normally 90 days from the date of approval. Longer periods may be requested for delayed equipment deliveries.

Information Required for Credit Approval (Financial Statement Transactions)

• Three (3) years CPA prepared business financial statements plus the most current interim. If the statements are not audited, tax returns are required.
• Signed, dated personal financial statements and tax returns of all guarantors.
• Equipment description and business purpose for the equipment acquisition.
• Bank and trade references (the APPLICATION).
• Summary including the who, what, when, where, why and how of the applicant's business.

_________________

EARLY STAGE AND START-UP BUSINESSES

New businesses almost always have at least one or two of the following characteristics:

• Business owner has alternate sources of income such as another business
• Owner has well employed spouse
• Owner has an excellent story
• Owner has significant experience in the industry
• Owner has owned a business before
• Owner has sufficient start-up capital

Information Required for Credit Approval (New Business)

• Last year's CPA prepared business financial statements plus the most current interim. If the statement is not audited, Federal tax returns are required.
• Signed, dated personal financial statements and Federal tax returns of all guarantors (three years).
• Equipment description and business purpose for the equipment acquisition.
• Bank and trade references. (The APPLICATION)
• Summary including the who what, when, where, why and how of the customer's business.

_________________

CORPORATION ONLY GUIDELINES (No Personal Guarantees)

Generally the owners of businesses personally guaranty the lease. There are cases when the personal guarantee is not required. Those cases have all or almost all of the following characteristics.

1. Time in Business: In business for seven (7) years under the same ownership.
2. Checking Account: The checking account must have been open for over two (2) years and have an average balance in excess of a low five (5) figure.
3. Personal Guarantees Elsewhere: Bank and other contractual creditors do not require guarantees or co-makers on their borrowings: and must be verified.
4. Credit Information: There is no adverse information in the bank and trade references and the public records.
5. Comparable Credit: Contractual credit of a similar (or comparable) amount is established (guarantees not required).
6. Personal Credit: Clean personal credit must exist with a minimum credit history of eight (8) years. Derogatory personal credit influences the credit decision.
7. Dun & Bradstreet: Must be listed, but not necessarily "rated" by Dun & Bradstreet.

______________

TRADE REFERENCE HELPFUL HINTS

Good Trade References

• Landlord
• Other lease companies
• Printers
• Material Supplier
• Biggest Supplier
• Oldest Supplier

Ineffective or Non-Reporting Trade References

• Phone
• Utilities
• Credit Cards (American Express)
• New Suppliers
• C.O.D. Suppliers
• Services such as Accounting and Insurance