Frequently Asked Questions And Answers

• Dealer/s: 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 reference information.
• Equipment: 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
• Insurance: 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.
• Rates: 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 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: New owners 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.
• Collateral: The equipment 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 sure.
• 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?: Yes, you 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 don’t want to continue with the lease process. Final payment quotes are available at the time of approval

Reasons For Slow Approvals Or Rejections

• You Must Be A Business: (Sole Proprietor, Partnership, Corporation, Non Profit) LFCI does not do personal loans.

  Note: We verify business age by ONE or more 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: It 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: We must have "key" owner/s Social Security Number/s. They are required on closely held businesses even if the personal guarantee/s are waived.
• 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 years.
• Multiple Applications: Do 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.
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NOTE: Businesses that can’t verify time in business may be approved

under our START-UP Program