CREDIT GUIDELINES
Processing an application for a lease is a credit decision, one in which we try to determine the prospective customer’s ability to meet the obligations of the lease agreement. To help us make these decisions, we look for the following types of information.
Time in Business
The longer a customer has been in business, the more likely it is that he has developed the experience to successfully deal with unforeseen problems that may arise in the future. Notwithstanding, even start-up companies will be eligible for consideration.
Type of Business
We consider the type of business when making credit decisions. Although we decide on each application on an individual basis, those businesses with historically high success rates are naturally preferred.
Checking Account History
The customer must have a business checking account with a history of activity that reflects prudent financial management practices. We consider both current and average balances.
Trade References
We ask for at least two trade references with whom we can verify that bills are paid in a timely fashion. We prefer references with average payments equal to or exceeding the amount of the proposed lease payment.
Personal Credit History
In those instances where personal credit information is needed (sole proprietorships, partnerships and closely held corporations), we look for a favorable record from the reporting bureaus. Factors considered in reviewing this area are the amount of unused, available credit, as well as the overall payment and credit history. Applicants with no chronic history of late payments, tax liens, judgments or bankruptcies are preferred. |
