Want to apply an equipment lease application? Don’t know where to get started? When it comes to equipment leasing, there are so many things to consider, right from your credit score to financial condition and more. Before you get started with your application process, lenders have compiled some aspects you need to consider:
Tip 1: Do remember to mention the details
This may seem like an obvious one, but believe it or not, a lack of information is one of the most common reasons applications are rejected or take longer to review. It’s as simple as ensuring that you’ve filled out every field on the application before submitting.
Along with completing your application completely, always include as many details as possible on your lease application. Providing detailed information helps us reach a point where lenders can get you approved.
Tip 2: You might require a personal guarantee
Most lenders require a personal guarantee before they can approve an application for brand new equipment. To give a personal guarantee, you must enter personal information such as your full name, home address, and date of birth, which allows us to obtain a credit report.
Many people believe that a business lease may only be done in the name of the company, but if the firm is still in its early stages, your personal guarantee may provide the additional support required to be approved.
Tip 3: Maintain a good financial position
All potential borrowers are advised to manage their debt levels, such as not holding huge debt or using credit lines excessively. Also, lenders want to observe that you pay trades on time because this demonstrates two things: capacity and character.
In addition to being in good standing with the credit reporting agencies, lenders recommend that you keep your corporation registration and tax filings up to date.
Tip 4: Deal with credit concerns appropriately
What matters most is how you handled previous credit troubles. Lenders know that businesses experience setbacks from time to time, and lenders completely get that; whether an owner goes through a divorce or there is an economic slump in a region, lenders recognize that things can happen beyond your control.
Don’t dodge your creditors, and make sure to take care of any outstanding issues before submitting your lease application.
Tip 5: Have your statement prepared by an expert
Lenders require financial statements for larger transactions. With those, lenders recommend having an accountant produce your statement rather than delivering an internally prepared statement.
Not everyone can afford to engage an accountant, but if it is possible, it adds another layer of credibility to the figures and information offered to us. Once lenders get those statements, lenders will search for robust balance sheets and demonstrated cash flow.
If you are looking for a reliable equipment leasing and financing company in Abbotsford and Surrey to get you approved, rely on none other than Sandhu & Sran Leasing & Financing. We are your go-to choice for quick and hassle-free equipment leasing in British Columbia. For more details, give us a call today.
