How To Get Approved For A Start Up

Business Equipment Lease FAST!

One of the biggest working capital drains for a start up business is buying equipment. One way

to preserve your working capital would be to utilize start up business equipment leasing for the

purchase of that equipment. Start up business equipment leasing , is a specialized form of

financing and getting approved can be a little tricky if you are not experienced with business

financing. here are some tips on how you can make your equipment lease request more

appealing to lenders and get approved fast!

1. Do Your Research – Not all equipment leasing companies will finance start up

businesses. Make sure they have a program for businesses with less than 3 years time in

business

2. Check Your Credit . Most leasing companies will be looking at your personal credit

score and not your business credit since many new businesses have very little credit.

Equipment leasing is a great way to start establishing business credit. If you havent set

up a Dunn and Bradstreet account for your business, now would be a good time to do so.

An equipment lease will use your personal credit for approval BUT WILL NOT show up

on your personal credit report. You can have it reported on your D&B file and start

building credit.

3. If You Have Poor Personal Credit – If you have poor personal credit make sure you

include a letter of explanation with your equipment lease application. Also be prepared

to have to put down a larger security deposit, or obtain a co-signer. Not all equipment

leasing companies will require this, but its good to be prepared.

4. Prepare all necessary documentations. Once you have found your equipment leasing

company ask them what are the requirements for approval. Most of them will require:

o An equipment lease application – fill this out completely

o 3 months bank statements (optional: they will need bank statements for anything

over $15,000 or for people with credit problems)

o 1 year tax return (optional :– depends on your credit and the dollar amount of the

lease)

o Personal financial statement: – (optional : depends on dollar amount and your

credit. Generally not needed for leases under $50,000

o Invoice or list of equipment you want to purchase

5. Executive Summary: This can be 1 – 3 pages telling them about your business,

experience, and how the equipment will be used to make your business more successful

6. Hiring a Certified Public Accountant if you have some time in business, you may want

to hire a CPA to put together your financial documentation. But if you use a program

like Quickbooks, you can print off the same types of financial documentation that is

needed for your lease approval.

7. Provide Credible References If Possible. If you have done any kind of financing in the

past, even just purchasing materials from a vendor that gave you a line of credit, you

should put them on your application. They will feel more confident about working with

your business if they know you have a history of repaying your debts on time.

8. Make Sure You Have Set Up Your Business Bank Account. You will probably have

to pay your equipment lease thru ACH. ACH is an arrangement that involves three

parties -you, your bank and your leasing company. Under this arrangement, payments

will be automatically sent to your leasing company according to the payment schedule in

your contract. Many financial companies feel safer knowing that the lease payment is set

up for automatic payment.

9. Location: If you are going to be working outside of your home, make sure you use that

address as the business location on your lease. An equipment leasing company will pay

your vendor directly for the equipment. They will first call you and make sure the

equipment has been delivered and installed correctly. They will want to make sure you

are happy with the condition of the equipment and that its functioning in your location.

In some cases the equipment financing company will send out a third party to look over

the equipment and verify that it was installed correctly.

Making sure you have all these documentations in place will help make your equipment lease

application and approval go faster.

Irish Taylor is a business loan consultant with Startup Business Loans and has been providing

consumers and business owners with startup business financing since 1992. For years she has

helped people with credit and loan problems especially pertaining to business start up, SBA

loans and Unsecured loans.