Finance and Lease Machinery and Equipment, New and Used, Leasing and Financing Programs Update, Part1

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Finance and lease programs are still obtainable for new and used machinery and equipment, however leasing and financing size for the first part of 2010, was in essence flat for most United States Industries.

Even though we are going through hard credit times, machine and equipment financing and leasing is still on hand for the good credit applicant and also for the not so good applicant. We are going to talk about the obtainable finance and lease programs in general to give you an plan that money is still open for start up and seasoned businesses.

First we are going to begin with the candidate with fantastic credit. That would be an applicant with 680 or higher credit and time in business that exceeds three years. The candidate should not have any past bankruptcies and should have low debt ratios. This candidate can qualify up to $50,000 to $75,000 application only programs. Furthermore, this gives the good credit candidate a good opportunity to get a great lending rate. If the applicant seeks more than $50,000 to $75,000, they will have to present more records to qualify. This would include two years prior years business and personal income tax returns and the summary page of your last three months business bank statements.( high average bank balances are looked at favorable) A personal financial statement might be required as well as interim financial statements. A copy of the invoice detailing the purchase would be necessary. as well

Clientele with personal credit scores between 650 and higher still have a good chance to obtain their desired acquisition. They should have a minimum of three years in business without former bankruptcies. Low debt to income ratios are also looked at favorable. Additionally, some financial institutions still might offer application only programs and anything beyond the minimum application only levels would require the same documentation as above.

With the second tier credit described above, the rates will be somewhat higher than “A” Credit with enormous work and industrial and safety equipment financing and leasing opportunities open.

Applicants with Credit scores between 600-650, there are many machinery and equipment lending programs available without perfect credit. Even though there may be some dings on the applicant’s credit, there are still machinery, equipment financing and leasing opportunities out in the leasing market. There won’t be application only programs but loads oflenderswill look at you. Once again, robust healthy bank balances with time in business with profitable operations showing on your tax return is a big plus… Usually, full documentation information is obligatory. The front money in these financial programs can run anywhere from 10-20% where as the first two programs can run as low as the first two payments..

There are other financial institutions that are not credit driven, but are story book driven. They work with start ups and seasoned businesses without flawless credit. They are more cash driven, and require some additional requirements to qualify. These lenders rates are higher than the programs described above but gives the applicant alternatives that might nor be available in a different place..

There are other institutions that are not credit driven at all but look at the free and clear assets that are available to the lender. Most institutions like machinery, bulldozers, trucks, excavators, etc that have retained a good value. These are cash poor applicants but have good qualified assets that the financial institution will qualify. These institutions have their own method to work out a lending base. One should call to find out the particular details (Copies of free and Clear Titles are required).These finance and lease programs can finance up to $5,000,000 or more based upon qualified assets.

In this recession, many lenders have had to focus on their repossessed machinery and equipment inventories instead of usual business due to cash flow demands, out of balance credit lines with their own banks, and challenging with other lenders for the small supply of buyers in the market place.

In the earlier better times, there were many application only programs up to $250,000 and $150,000. This meant there were no financial statements, tax returns or bank statements required. Today, there are less application only lending programs accessible, or the available programs require more information and their rate factors are higher than before. Due to problems in the industry, many institutions have gone back to more conventional lending requirements. .

These lending changes have a tremendous impact on regular business for marginal credit buyers, start up businesses and more established businesses. One interesting area that has arisen out of this economic downturn is dealer/special financing. With all the machinery and equipment repossessions in the market place today, buyers still have a distinctive business opportunity to acquire a repossession with a credit score as low as 550. Repossessions can be acquired with very little or no money down, sixty months to repay, regardless of age, and more favorable financing terms than conventional financing.

Since new business capital is not easy to obtain, it is recommended that the start up and seasoned business explore the repo markets. This could be a rewarding in the combination of both price and financing.Remember, there are finance and lease programs that go into the millions for larger applicants, obvious they will require full documentation packages.

If conventional isn't accessible to you for whatever reason, please check out the repossession machinery and equipment market and see what deals you may be eligible for.

Happy hunting for your equipment and machinery acquisition and its related financing.

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Article Source: http://depositarticles.com/

J.M Luna has over thirty years experience in the financial field. This includes financing and leasing, hard asset money and commercial loans. U.S Corporate Capital Leasing assists the start up and seasoned businesses for all its machinery and equipment needs. www.cclgequipmentleasing.com/lease_equipment.htm www.cclgequipmentleasing.com

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