Whether you are a proprietor or authorized officer of a corporation with less than two years of management under current ownership, there are stringent requirements for leasing to your business. This is an industry-wide practice, as the risks with start-up businesses are quite high. These requirements state that we must review personal credit histories of all involved principals, and require that each said principal must personally guaranty the lease obligations will be met. As well, for any deal we require both a business bank account and business telephone listing be available.
The maximum amount we of equipment that we may consider leasing to start up companies is up to $100,000, and must be personally guaranteed by at least two officers, subject to credit approval. Rates for start up companies have dramatically steeper rates than those for our standard lease agreement, and include a non-refundable deposit. We do offer a one dollar purchase option, however, in some cases. Our program for start up businesses is structured with higher costs, simply because the equipment leasing industry has seen very difficult times with new companies, and thus the risk is quite high. For start ups, in fact, we generally recommend that companies consult their banker for financing.
Steps Start Up Businesses Should Take
With our Start Up equipment leasing program, we demand a $200 application fee. This is the only program with which we do this, simply because many people are refused. As a word of warning, we will say that if the owner(s) of the Start Up Business have poor credit histories, a lease WILL NOT be approved. As well, if we approve your lease, and you decide not to go forward, the application fee is 100% non-refundable. We insist on a non-refundable application fee mainly because it ensures that the customer is both serious about the transaction, and has a good credit rating. Our experience shows us that start up leasing is very risky, and thus our terms are certainly more rigid than with our standard equipment leasing deals.
Do you have more questions about Start Up Financing with LeaseBanker by FCL? If so, please contact us here .
5575 Poplar Ave. Suite 424
Memphis, Tennessee 38119