Equipment Financing Application
Submission Guidelines and Rationales

When apply for an equipment financing for your business, either through full purchase (EFA) or leasing, you want the application process to be smooth, efficient, and hassle free. The followings are guidelines and rationales that can help you understand the reasoning from lenders’ perspective. By assisting the lenders conducting efficient underwriting you achieve your objective of accessing capital expeditiously.

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Each submission must contain:


Considerations for making credit decisions include:


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Although not all lenders require bank statements at submission, the applicant must have a verifiable commercial checking account and address under the business name at funding. If the applicant doesn’t have either a business telephone and/or a commercial bank account, then the applicant would not be considered “in business”. This is an important fraud prevention measure.

Business verification requirements may be waived on a case-by-case basis when it is determined that it is customary and reasonable the applicant would not normally have a business telephone. Examples may include: subcontracting or transportation businesses. In these instances, other supporting documentation that establishes evidence of the commercial enterprise may be requested such as: sales tax license, business license, business name filing, landlord lease agreement, utility bill, or associated federal income tax schedules.


Many lenders have a no-doc program similar to “Application-Only”. Occasionally however, for lender to further consider a transaction, a detailed financial package consisting of the following additional information may be requested. This will often be the case for split transactions or for applicants that have existing exposure with other funding sources.

1) IRS Tax Returns

Parts of the most recent tax returns are required on all guarantors and the business per the following schedule:

2) Personal Financial Statement (PFS)

A personal financial statement is required on all guarantors. The PFS must be complete, accurate, and less than 60 days old with detailed supporting schedules, dated and signed by guarantor(s).


Many times the credit strength of an applicant can be enhanced with a spousal, parental or blood relative guaranty. Many lenders evaluate this potential additional guarantor on a case-by-case basis. In general, a co-signer is required when a business owner/operator has a limited credit profile or aged derogatory credit. An owner or business manager that has an extremely poor credit bureau and/or has recent payment problems will not be considered even with a very favorable co-signer.


Discharged bankruptcy over two years will be considered in instances when any guarantor has a firmly re-established credit history demonstrating depth and timeliness of payments. For applicants with less than 2 years since the bankruptcy, pricing may be considered for ‘C’ Rates.




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