At Precision Leasing, we take pride in the fact we work with all different types of credits. We roll-up our sleeves and look for ways to get a deal approved rather than finding reasons to decline them. We look at well-established businesses to those that are just getting off the ground. We look at customers with great credit to those that have hit a few speed bumps over the years. No matter what your situation our goal as a lender is to fund and service ALL of our transactions, but sometimes we just can't get that done (due to certain credit situations). Below is a list of credit requirements for the customers that would qualify as an "A" credit and receive the best rates possible. For all other credit situations, please contact us to discuss other options.
¨ Applicants are required to have a minimum of two years verifiable time in business (under current ownership) for all transactions under $50,000, and a minimum of three years verifiable time in business (under current ownership) for all transactions over $50,000.
¨ Personal Guarantors will be required from a majority of the ownership for all closely held entities (four or fewer owners). The personal credit scores of these owners should be 650 or greater using one of the three main credit reporting agencies (Equifax, Trans Union, or Experian).
¨ The applicant should maintain an average bank balance of “mid-four digit” for transactions under $50,000, and balances of “high-four digit” for transactions over $50,000. This will be verified by collecting a minimum of three months bank statements or getting a bank reference.
¨ No prior bankruptcies will be allowed.
¨ ACH debit of monthly payments is required.
¨ A full financial package will be required on all transactions above $50,000. This includes last two years personal and business tax returns, interim financial statements to include balance sheet and income statement, and a current signed personal financial statement on all guarantors.
¨ Transactions over $100,000 would require a site inspection.
¨ Soft costs should be limited to 35% of total equipment cost.
¨ Software Only transactions will be allowed but would require a slight increase in rates.
¨ Corporate Only Transactions (no guarantors) would be allowed as long as the applicant has been in business for over ten years (same ownership) and all owners’ names and their ownership percentages are verified in writing. Applicant can’t be publicly traded and must have more than four owners.
¨ Private Party Sales (no distributor) would be allowed as long as equipment being financed has no existing liens. This would be verified with copy of invoice and voided check from original sale or a UCC search on company that is selling the equipment to verify no collateral specific liens.
