“Getting your financial house in order is an intelligent step toward obtaining financing approvals," said Michael Lockwood, president of TEQlease Capital.
Calabasas, Ca. (PRWEB) February 07, 2013
The last five years have been brutal for many small businesses looking for financing. But according to Mike Lockwood, president of TEQlease Capital, a nationwide provider of equipment lease financing solutions, there are steps small businesses can take to increase their chances of getting their financing approved.
“Already this year we have experienced a surge in requests for quotes and planning estimates. The view appears to be that now is the time to plan for capital expenditures in anticipation of a full economic recovery,” said Lockwood. “Getting your financial house in order is an intelligent step toward obtaining financing approvals.”
Here are eight steps for getting small business financing approval:
1. Clean up the business credit report. First, get a copy of the business credit report from any free provider and make sure it is accurate and complete. Take the time to make sure the report is as accurate as possible paying particular attention to business name, DBAs, address, payment history, liens, lawsuits, loans, ownership and officers and more. If the business credit report needs modifying, do so online instead of over the phone.
2. Be able to prove that the business has a steady cash flow. A steady cash flow demonstrates that the business has plenty of money to pay creditors, employees and others on time.
3. Make sure the business has a manageable debt load. A business needs to be able to demonstrate it can not only handle current debt load but also the additional debt repayment on what the proposed financing will cause. Also be prepared to demonstrate why this additional debt will be beneficial to the business.
4. Demonstrate that the business has a sustained positive payment history. One of the most important factors for any financier to weigh is a business’ payment history. A financier needs to see that a business has a record of paying down debt, and on time.
5. Prove business judgment. Potential lenders want to be assured that any business seeking financing has anticipated potential challenges and has a plan in place as to how to address these challenges. Furthermore, lenders are also interested to see that the business has the management in place necessary to overcome any obstacles that might arise.
6. Be aware that most lessors and lenders want a small- or medium-sized business owner or executive to sign a personal guarantee as an “added assurance” that the owner or executive is committed to the business and is committed to repaying the equipment lease or loan. A personal guarantee demonstrates to a lessor or lender that the business owner is responsible and intends on repaying all its business leases.
7. Only members of the executive management team should sign a personal guarantee. A personal guarantee should not be signed by anyone who does not really have a full view of the company’s plans or finances.
8. Make sure to comparison shop for financing. Don’t assume the bank or the vendor will offer the best terms. Compare rates, lease terms, fees and options and use only established financing providers.
TEQlease Capital is a nationwide provider of equipment lease financing solutions across all industries, including manufacturing, education, distribution, financial services, healthcare, and retail organizations. TEQlease Capital customers include Fortune 500, medium-sized, and small businesses. Founded in 2000, the company is based in Calabasas, California. For more information visit http://teqlease.com/, call 1-818-222-1006, or email sales(at)teqlease(dot)com.
TEQlease Capital and TEQlease are trademarks, registered trademarks,
or service marks of TEQlease, Inc. All other trademarks are the property of their registered owners.