Advantages of Leasing
Choosing a Lease Company
VS. Bank Loan
Frequently Asked Questions
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
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. OVER five years in business AND 10 employees or more
- required to waive personal guarantees.
- 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
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.
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:
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.
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,
currently owned equipment, etc.
- Business Credit Makes Up For Poor
Personal Credit: Since most companies are closely held, clean
personal credit is required for closely held businesses under five years old
and 10 employees. There are some exceptions. Ask if you are not
- 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 (in most cases).
- Do I Own The Equipment?:
own the equipment after you make all payments and any purchase option,
unpaid taxes, etc.
- 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 donít want to continue with the lease process. Final payment quotes are
available at the time of approval
Reasons For Slow Approvals
- You Must Be A Business:
(Sole Proprietor, Partnership, Corporation, Non Profit) LFCI does not do
verify business age
of the following items:
Business Bank Reference, Business License, Trade
References, Schedule C, Business Tax Return, State And/Or Federal Filings such
as Incorporation Papers, etc.
- Incomplete Application Or Application Is
Unreadable: Bank, trade, phone, account numbers, and contact
information are essential to the credit process.
- Bank Will Not Respond:
is always a good idea to provide us with a contact person so your account
information can be verified quickly. Make sure your bank will respond to our
inquiry. OR - fax us your three most recent business bank statements
- cover page only (in most cases)
- Business Bank Balance Is Low:
Make sure we can verify an average daily bank balance of at least
$1,000. If you keep money in other accounts (even personal accounts),
please provide us with that information.
- Trade References Do Not Respond Or Give
Bad Information: You may want to call and make sure your trade
references know we will be calling. Make sure your account is in good
standing. Include a contact person and account number if possible.
- Personal Information:
must have "key" owner/s Social Security Number/s. They are
required on closely held businesses even if the personal guarantee/s are
- Judgments, Liens, Charge-Offs:
Please report any credit problems up front. Approvals can still be granted
if we have a reasonable explanation. No bankruptcies within the last two
- Multiple Applications:
not apply to several companies at the same time. This will affect your
credit report in a negative way and may unnecessarily result in a rejection.
- No Personal Credit: If you
are a small, closely held business, we must see at least five credit
listings on your personal credit report. We must see some credit history.
Examples: house or car loan, Visa, Sears, line of credit, bank loan, etc.
- Excessive Personal Debt:
Individuals with excessive credit card debt may be required to show
business and/or personal tax returns to substantiate your ability to
pay for the new lease.
NOTE: Businesses that canít verify time in business may be
under our START-UP Program
Audio, Video, Lighting - Lease to Own Equipment Financing
(800) 626-LFCI (843) 363-5990
(843) 363-5991 Fax