subject: Equipment Lease Tips For The Credit Challenged [print this page] Are you a business owner trying to find practical ways to finance your business? If yes, then you must consider business equipment lease financing. When compared to business loans, applying for an equipment lease is generally easier and the application process, faster than loans.
What do you need to get approved for an equipment lease? Many leasing companies require the submission of the following documents: financial statements, tax returns, business plan and lease proposal. Credit history is another major factor to get a lease. Of course, if you can show good or excellent credit, a lessor will be more confident in your ability to keep up with your lease payments.
Nevertheless, if you have a history bad credit, it is possible to get the equipment lease financing you need. In this article, let us talk about the steps that you can do to be able to acquire a lease despite having bad credit.
Leasing Programs For The Credit Challenged
It is a relief to know that there are business equipment leasing companies that extend special lease programs for businesses that are credit challenged. As a matter of fact, acquire a business equipment lease can be just the thing you need to be able to improve your bad credit.
If you plan to apply for a lease, be sure to check your credit report to make sure that your credit problems are in the past. See to it that you do not have past due debts in any of your accounts and that you are in good terms with your present creditors. For those who have a record bankruptcy, you application may get rejected if you have been discharged recently or for less than 2 years.
To increase your chance of getting approved, include a letter of explanation along with your lease application. In your letter, be sure to include the steps that you have already done to improve your credit and to avoid being stuck in bad credit again. Needless to say, a potential lessor is most interested to learn that you have the capability to submit your monthly lease payments throughout your lease term.
A Word of Advice Before Applying for A Lease
Prior to submitting an equipment lease application to your chosen leasing company, make sure that the lessor accepts applicants who have bad credit history. Keep in mind that many leasing companies strictly require good credit and submitting your lease application to the wrong lessor will only result to rejection.
Each time you submit a lease application to a leasing company, an inquiry will be made to your credit report. Too many inquiries may cause you to drop a few points from your credit score which could be a problem if you have a low score. Add to this, a potential lessor may decide to reject your business if it finds too many inquiries from other leasing companies in your credit file. If you do get rejected a couple of times, other leasing companies will have doubts about your credibility.
