Do you own a small business? If yes, are you trying to find financing alternatives for your company? Equipment lease
financing is a great option not just for new businesses but even for established businesses as well. Acquiring an equipment lease is generally easier and quicker which makes it an ideal option for many businesses. But what if you have past credit problems? Does that mean you cannot qualify for a lease? The good news is that there are leasing companies that offer special lease packages for business owners with past credit problems. Making it possible to get approved despite of bad credit.
Leasing Programs For The Credit Challenged
Business equipment leasing companies that have special lease programs for people with bad credit, can not only help you improve your credit, but it will help you to start building credit for your business. Lease Funders’ bad credit leasing program requires that all credit problems be in the past, and you have started to rebuild your credit. We also require a letter of explanation about your credit problems. If you are a start up business (anything under 2 years in business) an executive summary will also be required. Before submitting your lease application, it’s a good idea to check your credit report to make sure the information on it is correct. If you find incorrect info, its better to get that fixed before applying for your equipment lease. Having a poor credit score will of course effect how much you are approved for, the length of the lease and your monthly payment. Its better for you to improve your credit as much as you can before you submit the application.
What if you have filed for bankruptcy?
Business equipment leasing can still be an option as long as you have been discharged from bankruptcy for at least 3 years and you have started to rebuild credit since your bankruptcy. Keep in mind the leasing companies will still be looking for comparable credit after your bankruptcy. So if you are looking for a $50,000 lease but have only rebuilt a little credit with credit limits lower than that, be prepared to provide a co-signer.
A Word of Advice Before Applying for A Lease
Before submitting a lease application, check the credit requirement of the leasing company. Remember that not all equipment leasing companies in the market accept customers with bad credit. If you submit your application to these lessors, then you will automatically be declined. When you submit an application to a leasing company, an inquiry will be made to your credit report. Each time an inquiry is done, your credit score drops a little. That is why too many inquiries in your report can be damaging to your credit. Submit only a lease application once you are sure that you have found the right business equipment lease partner.
Related Articles: