Learn About Credit

The Equipment Leasing Experts -- Our 35th Year!


Your Credit Report
What is Clean Credit?
Credit Clean Up


Credit Is About History
Yours!  Because we don't require business plans or projections our credit reviews are based (substantially) on you and your business' previously demonstrated ability to meet obligations that are comparable to those for which you are now applying. 

The Four Key Areas That We Focus On:


Time in Business--Experience counts.  Our "standard" programs like QuickLease™,  require a minimum of two (verifiable) years in business under current ownership.  For [newer and start-up] businesses  

bulletTrade References--We will ask for at least two and usually three companies with whom you have established trade credit (billing).  We're looking at how you've managed those obligations for other creditors
bulletBanking Relationships--For programs other than new businesses, we want to see a total of at least two years of commercial checking account history.  We're looking at both current and average balances as well as extraordinary events like NSF's.  Balances should be sufficient to meet all lease obligations as well as the day-to-day needs of a business of similar size.
bulletPersonal Credit History--Experience has shown that, in smaller and closely held businesses, that there is a significant correlation between the principal's personal credit and the overall financial well being of his/her company.  We will look for "clean credit" although we have programs for those with certain "credit challenges."  We define a "principal" as any party with a 10% or greater interest in the company.   Publicly traded, or other larger businesses, under current ownership for at least  5 years can request to be considered under one of our "corporate guarantee only" programs.

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The Credit Process
Every credit decision is part science (hard facts and actual credit history), part statistics (similar equipment financed by similar businesses under similar economic circumstances combined with the results of a proprietary credit scoring model and occasionally, even a bit of "intuition" based on having had the opportunity to review thousands of funding requests over a period of 33 years.

The Credit Review
A credit review forms the basis for the decision to extend credit to a business.  We want the process to be quick, accurate and most importantly fair--to the lessee looking to acquire equipment and to our owners who's funds are being committed.  First Capital's  QuickLease™ application for equipment under $75,000 (for example) is just one-page and does not require the financial statements or the extensive business plans typical of bank financing.  

One Question We Probably Won't Ask!
How much money did you make? Surprised?  Most smaller businesses don't have extensive operating histories, nor do most go to the expense of ordering audited (or review-level) statements.  Even if a business offered financial statements (audited or internally-prepared), most credit analysts wouldn't have time to "analyze" them anyway.  Your cash flow, however will get lots of attention, through analysis of bank balances, trade references and debt.

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A Note About "Credit Shopping." Don't Do It!
Here's why: Too many inquires in too short a time period can significantly lower your credit rating (score) as each inquiry becomes a part of your permanent record and will be viewed by subsequent lenders.

Your Credit Score Can Drop 10 Points
...For EVERY Inquiry You Authorize!

Many underwriters will automatically disqualify an applicant with "too many" recent inquiries.  Release your credit "judiciously," to only as few lenders as you absolutely need, to meet your goals.  This is a classic example of when "more," is not "better."  Never accept an offer that's not right for you.  That's the time to shop, but again, one-at-a-time!

If You Must Shop...Here's One Way to Protect YOUR Credit!
Run your own credit here and submit your credit report along with your application while in "the shopping phase."   A "3-in-1" report will show them anything they need to know to screen you in, or out.  Do not authorize anyone considering your application to run your credit unless they are SURE that the credit meets their criteria, i.e. they would approve you.  Almost any creditor will tell you that they will have to run their own bureau as a conditional of actually funding the transaction (and that is true), BUT you will save yourself and "your credit" countless, score-lowering inquires from those who may well have screened you out as soon as they reviewed the credit.

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