An Independent Leasing Company's Role In Providing Equipment Leasing/Loan Services To Your Company Or Business

Are you are considering doing business with an independent leasing as a business owner or decision-maker? Do you, or your company, offer equipment leasing and financing as a product or service?

We would like to explore, based upon our thirty years experience in this industry, those things a competent, professional equipment leasing/financing company should be able to provide. Among those are the following;

1. An evaluation of the credit worthiness of the company, accomplished by the collection of the proper credit information. This includes, but is not limited to, a signed credit application, personal and company tax returns and/or financial statements. Based upon this information, a determination of the amount and cost of a credit approved (rejected) equipment lease can be provided. For smaller dollar transactions (under $75,000), this process should take place within 2-3 business days of submission of the application. This is assuming the banking and trade information provided is accurate and readily able to be confirmed.

Transactions in excess of $75,000. require more information and generally have a longer processing time.. However it is reasonable to assume that a decision should be rendered within 5-7 working days.

Pricing is now, more than ever, tied to a credit scoring system used by lenders for small and large transactions alike. It encompasses various benchmarks such as personal credit scores, D&B Paydex ratings and how a business or company has handled past, similar debt.

Regardless of that, the independent leasing company should be able to process a particular transaction, and at some point, begin to set rate expectations for their client. This can occur as early as when the personal credit bureaus and D&B report are reviewed (within one day), to as late as a final decision is communicated from the lender on larger transactions (5-7 days).

It is something a competent, professional organization should be able to do in a timely way, without any significant time or money commitment on the part of the customer. In other words, no advance fees or deposits should be required to get to a decision point on the approval. On larger transactions over 250K certain lenders, usually banks and larger institutions , may require a “good faith deposit” and a signed proposal or commitment letter to process a package. In all cases, this deposit should be refundable or applied to actual payments on the transaction in the event of an approval