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APPLICATION ONLY TRANSACTION

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)

Credit Application Equipment description and business purpose for the equipment acquisition. Last three months bank statements on the business. Summary including the who, what, when, where, why and how of the applicant's business.

Downloads Credit Application

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FINANCIAL STATEMENT TRANSACTION

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 (which have different rules - see below).

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 business tax returns (unless you provide three years CPA Audited financial statements) The most current interim income statement and balance sheet. Signed, dated personal financial statements and tax returns of all guarantors (must be less than six months old - sample form at right). Equipment description and business purpose for the equipment acquisition. Three months of the business bank statements front page only showing balances. Credit Application Summary including the who, what, when, where, why and how of the applicant's business.

Credit Downloads Credit Application Personal Financial Statement(pdf) Personal Financial Statement(word)

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EARLY STAGE AND START-UP BUSINESSES

At this time, I am only able to finance start-up buisnesses in the Shredding Industry. Those 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 (Start-up Businesses)

Two years personal Federal Tax Returns on all owner's / guarantors. Signed and dated personal financial statements Equipment description and business purpose for the equipment acquisition. Credit Application Evidence of cash investment in the business Summary including the who what, when, where, why and how of the customer's business.

Credit Downloads Credit Application Personal Financial Statement(pdf) Personal Financial Statement(word)

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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. If the transaction is small enough, then only a credit application is required. If the transaction is larger, then a full financial package is required.

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

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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