How Equipment Financing Credit Decisions Are Made

There are many equipment financing companies to choose from throughout the US and Canada. They all have similar but not necessarily the exact same way of looking at borrowers. They range from credit focused,  challenged credit, collateral driven, start-ups and even those that specialize in municipal equipment buyers. Whatever their niche, they generally look to these 5 credit measures in common to make yes/no credit decisions: Cash Flow – All lenders want to make sure…

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What every business needs to know about PayNet

PayNet is a business credit reporting agency with a database containing over 22 million contracts from small business loans, leases, and lines of credit. You cannot purchase reports, the business must call and request a copy. PayNet MasterScore® v2 – This lending score ranges from 550-740 with the higher score reflecting a lower risk borrower. Lenders will use this score to predict the risk potential of borrowers. They use 587 variables and 135 unique variables…

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How to Negotiate Your Best Equipment Financing Today!

So many times, the first question I get is what’s the rate? The better question is “What’s the best deal structure for me? Rate is a function of several factors: your time in business (TIB), your personal and business credit scores, the length of the lease (term) and if you have had comparable business credit (i.e. have you borrowed at least 50% of the amount you are requesting). In considering the best deal structure, think…

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Stretching Working Capital with Lease Financing

When the cost of the asset can be spread over several years, lease financing is a viable option to retain as much as for operations as possible. The most frequent reason to use lease financing in business is to retain as much cash for operations as possible while enjoying the benefits of the financed product (i.e. equipment and/or software). Having served as turnaround CFO and commercial financing consultant, I have seen opportunities missed by purchasing…

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Manage Your Cash Flow with This One Management Tool!

Insufficient cash is one thing that can threaten continuation of any business’ operations. Every business needs enough cash to start and sustain operations. Watching cash flow is critical to all businesses, no matter the industry or how long it’s been in operation. 13-Week Cash Flow Schedule is a Powerful Cash Management Tool Your business can be Software as a Service (SaaS), oil & gas, manufacturing, wholesaling, a retail, education or health care. It matters not,…

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