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Access 101

7 Tips to Getting a Lease Application Approved

Blog Posts - Apr 22

7 Tips to Getting a Lease Application Approved

JLG Industries, Inc.
World-leading access equipment manufacturer
____
McConnellsburg, PA

Few things will sap one’s motivation and momentum on a project (or worse, while starting a business) than having a lease application rejected. Progress can grind to a halt while a business scrambles to regroup, potentially missing deadlines and maybe even losing money.
7 Tips for Leasing Equipment at a Glance
It doesn’t have to be that way! Give a lease application a better chance of being accepted by following these seven recommendations from CWB National Leasing, the JLG Financial™ lending partner in Canada.

Tip 1: It’s all about the details
This may seem like a really obvious one, but believe it or not, lack of information is one of the most common reasons applications are turned down or require more time to review. It’s as simple as making sure every possible field on the application is filled out before being submitted.

Along with completing the application in full, always provide as many details as possible. The more details provided, the more likely it is to be approved (and with fewer delays.) 

For example, when asked about which industry a company serves, one might list “construction.” But what kind of construction is it? Road construction, home construction, or something else entirely? Providing extra detail goes a long way toward getting a finance company to a comfort level where an application can be approved. Vague answers simply don’t provide enough information.

Tip 2:   A business application may need a personal guarantee
You might be surprised to learn that a personal guarantee is required before a finance application for a brand-new business to be approved.

To provide a personal guarantee, one must provide personal information like a person’s full name, home address and date of birth. This allows a finance company to pull a credit bureau report, and the expectation is that you will personally become a party to the lease.

A lot of people think their business lease can only be done in the name of the business, but if the company is new, your personal guarantee may provide the additional support needed to approve the application. 

Tip 3: Tell us your story
Another item that can help new businesses with approval is to provide a business plan or a backgrounder describing your related experience. Although those things may not seem like they fit on a business lease application, if you don’t have established credit history or financial statements, a finance company needs to understand how and why you’re going to be able to pay for the lease. 

Once again, the more information you can provide, the better.

Tip 4:  Be in good standing
With all applications, finance companies generally look at commercial credit reports and sometimes personal credit bureaus. Finance applicants are encouraged to manage the level of debt they’re carrying, like not carrying really high balances or showing really high utilization of credit lines. Also, finance companies want to see that you’re paying trades on time because that shows two things: capacity and character.  

Along with being in good standing with the credit reporting agencies, companies are also encouraged to keep corporate registrations and tax filings up to date. With businesses, corporate registrations or filings aren’t always kept up to date, which can cast doubt about the legitimacy of the business.  

Tip 5: Handle credit issues responsibly
If a business has had prior issues with credit, what’s important is how it was managed. Finance companies know businesses run into hiccups from time to time and totally understand that; whether an owner goes through a divorce or there’s an economic downturn in a region, it’s understood things can happen that are out of one’s control. It’s how a business manages those struggles that matters. 

Don’t avoid creditors and be sure to take care of any ongoing issues before submitting a lease application.

Tip 6:  Get statements prepared by an expert
One thing required on larger transactions is financial statements. With those, its encouraged that an accountant complete a business statement as opposed to providing an internally prepared statement. Not every business can afford to hire an accountant, but if it’s possible, it just provides another level of validity to the numbers and what’s being presented. 

Once a finance company gets those statements, we’re looking for healthy balance sheets and demonstrated cash flow.

Tip 7: Don’t take it personally
When asked for additional information, please don’t take it personally. It’s just part of the process that provides a better understanding of a business and its ability to make payments. It isn’t a sign that your business is in doubt; it’s simply a finance company doing its due diligence.

Everything is in order, now what?
The JLG Financial team is always just a phone call or an email away. In Canada, customers can contact JLG Financial by calling 1-833-385-0264 or emailing retailcanada@jlg.com. In the U.S., customer customers can contact JLG Financial by calling 888-346-5543 or emailing retailfinance@jlg.com. Or to visit JLG Financial online, click here.

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