What kind of companies do we approve for a Lease?
We approach every application with one primary objective: Approval.
The truth is, we only make money on approvals and funding. In fact, it
costs us money every time we can't find a way to approve an application,
so we maintain a singular focus on solutions that will lead to doing
business with you today and building a relationship for your future
needs as well.
The credit business still remains equal measures of art and science.
And INFORMATION is the central resource, the "raw material" that we use
to create solutions for our customers.
Here are our basic guidelines:
Credit qualification requirements vary but generally every
established business with a good credit record can lease equipment. Our
best terms are available for businesses which are two or more years old,
and have been under their current ownership for at least that long.
We also approve new businesses and companies that have recently
changed ownership.
- You will need to provide the exact legal name of the business,
when it was started and who are the owners.
- Bank references are contacted to confirm the length of time the
account has been established and to obtain an average deposit
balance. (Generally, we need to see a minimum average banking
balance of $1,000+. All business bank accounts can be considered,
including, perhaps, the company's payroll account, merchant account
and any savings accounts.)
- We want to contact several trade references for payment history
related to our applicant.
- Depending on the dollar size of our applicant's credit request, or
the age of the business, we may need financial statements for the
business, its owners, or both.
- Personal guarantees are generally required from the owners of
closely held corporations or newer businesses. Even when a personal
guarantee is not required, we will do a "background check" on the
credit bureaus of the principals of a closely held company.
We are able to approve up to $100,000 on an "application only" basis
for qualifying customers which are 2 years or longer under the current
ownership. As a general rule, larger transactions will require
financial disclosure in order to be approved.
New Businesses
A LOT of equipment that is acquired by businesses each year is
acquired by companies in their very early years. ITFinanceGroup.com has
developed several programs that allow us to approve funding for
companies which are less than 2 years in business; even companies that
haven't yet opened for business can be approved!
For new businesses, the credit and financial strength of the owners
will be of primary importance and their personal guarantees will always
be required. Additionally, we may ask to review business plans,
pro-forma financial statements, customer and supplier contracts,
management résumés or other pertinent information so that we can reach a
level of comfort that our Lessee is prepared for business success.
We Also Approve:
- Non-Profit Organizations
- Municipalities
- Tribal Governments
- Strong Credits in Foreign Countries
- Proprietorships, Corporations, LLC's & Partnerships
As a matter of practice, we
generally don't do an in-depth analysis of your business plan, market
potential or competitive position.
It has been our experience that
the success of most (almost all) small business is based substantially
on the existing ownership's talents, their industry contacts and their
commitment to the success of their business venture. So we rely heavily
on the commitment of the owner(s) as an indication of the confidence
they have in the business. The owner's personal guarantee indicates a
high degree of confidence by the owners in the future of their business
and its ability to meet its obligations. After all, if you have no
confidence in the business, WHY SHOULD WE? However we will take a
look at all requests with the goal of obtaining approval.
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