A Leading Provider in Equipment Financing

Why Equipment Financing Companies Ask for Additional Documentation

It’s Not a Hoop to Jump Through. It’s a Means to Approve Your Financing Application.

Equipment Financing Global FinancialLet’s save you some time. If your credit score is 750 or above, feel free to read another blog. This one doesn’t pertain to you because typically your equipment financing will be approved based on your application alone.

If your credit score is below 750, and especially if it’s much lower, stay with us. Chances are that along with your application, that an equipment financing lender, like Global Financial & Leasing Services (GFLS), will ask for additional financial documentation. Worst case scenario is that your lender doesn’t ask for you additional documentation and simply rejects your financing application. Simply put, don’t look at gathering paperwork as a hoop your lender is asking you to jump through, but rather as a means to get you the funding you need for equipment.

There are two reasons equipment financing lenders ask you for more documentation along with your application.

  1. They want to help you prove your income and your credit worthiness.
  2. They want to help you prove that you have the ability to repay the lease.

The following are the most common financial documents lenders might ask for if additional documentation is required.

Personal and business bank statements from the past three months

Bank statements let lenders visually verify income and provide a general overview of how you handle your finances. If your statements include negative balances and overdrafts, that sends a red flag to lenders that you could have a better handle on managing your finances.

What can you do if your bank statements aren’t going to help your application? Change your focus from getting equipment financing to improving your bank statements. Keep positive balances and avoid overdrafts. Think of the overdraft fees you’ll save. Then, revisit equipment leasing once your financials are in better shape.

Year-end P&L statements and balance sheets from the past one to two years

Profit & loss (P&L) statements and balance sheets are common business financial documents. They offer an excellent overview of a company’s financial health, which is what lenders need to see when deciding whether to take a risk on lending you money for business equipment.

Personal and business tax returns for the past one to two years

Like P&L statements, tax returns show financial strength, and they are seen universally as a legitimate reporting tool. Expect lenders to compare numbers between your P&L statements and balance sheets to your tax returns. If the figures don’t “add up,” lenders will see this as a red flag.

Personal financial statements from the company’s principals

Personal financial statements from your company’s principals might be requested, especially if the they are personally guaranteeing the equipment financing. The statements include assets, such as homes, cars and income, as well as debts, such as mortgages, car loans, etc. Personal financial statements show the principals’ net worth and ability to financially guarantee the loan.

Collateral

Lenders may ask if you hold any assets that can be used for collateral against your equipment financing. If you have an asset, documentation of ownership and worth will be required.

Current vendor quote or invoice for the equipment being financed

The equipment quote or invoice verifies the financing amount matches the sales price.

READ: You Need to Package Your “Story Credit”

Along with your credit score, how much additional documentation you’re asked to provide also depends on the amount of the financing you’re requesting. The higher the amount, the more documentation you might be asked to submit. Regardless of the amount, the more documentation you can provide when asked, the better overall idea the lender has of your financial situation. And, that can make a difference when it comes to approving your equipment leasing application.

If you want to learn more about the equipment financing application process, our team is happy to answer your questions.

People Are Talking . . .

P. Bosley, Mgr. Member, Vendor

Larry, I really appreciate you working so diligently on this lease application and approval. You are a true professional!

Global Financial and Leasing Client Testimonials
2019-03-20T07:39:56-07:00
Larry, I really appreciate you working so diligently on this lease application and approval. You are a true professional!

G. Duncan, CFO, CPA, CFE

Judi your email agrees 100% with our discussion yesterday. I appreciate the customer service and you going to some trouble to help us out. That type of service is remembered and appreciated.
Global Financial and Leasing Client Testimonials
2019-03-20T07:40:24-07:00
Judi your email agrees 100% with our discussion yesterday. I appreciate the customer service and you going to some trouble to help us out. That type of service is remembered and appreciated.

Executive Director, Surgery Center

Judi, please accept my thanks to you and the team there for the very nice cookie basket. We received it this morning and it was a big hit with our staff. Your thoughtfulness is much appreciated and admirable. Again, my thanks to you and Larry for the smooth financing transaction we just completed. Have a great weekend. Now I have to go find some milk.
Global Financial and Leasing Client Testimonials
2019-03-20T07:18:42-07:00
Judi, please accept my thanks to you and the team there for the very nice cookie basket. We received it this morning and it was a big hit with our staff. Your thoughtfulness is much appreciated and admirable. Again, my thanks to you and Larry for the smooth financing transaction we just completed. Have a great weekend. Now I have to go find some milk.

Jeffrey L., FPC Financial Partners

Jerald Collens and Global Financial and Leasing Services have been great in helping me get some of my deals done that I otherwise would not have been able to close. Jerald looks at all aspects of the deal in order to find a solution that suits my clients.
Global Financial and Leasing Client Testimonials
2019-03-20T07:40:58-07:00
Jerald Collens and Global Financial and Leasing Services have been great in helping me get some of my deals done that I otherwise would not have been able to close. Jerald looks at all aspects of the deal in order to find a solution that suits my clients.

Office Manager, Podiatrist

I sincerely appreciate your response on this holiday weekend. You’re a true professional and your dedication with assisting clients has always been honorable. May the remainder of your weekend be enjoyable!
Global Financial and Leasing Client Testimonials
2019-03-20T07:21:41-07:00
I sincerely appreciate your response on this holiday weekend. You’re a true professional and your dedication with assisting clients has always been honorable. May the remainder of your weekend be enjoyable!

Taylor M., General Financial

Your company has helped touch the hearts of both new, and returning mutual clients across the US. Jerald Collens continues to show excellence in his career, and still goes out of his way to make himself available at all times to satisfy our demanding clients needs. We are proud to have a funding partner in our industry that is dedicated to finding a way to say “yes” to every single clients unique circumstances, when other funding sources typically say “no”.
Global Financial and Leasing Client Testimonials
2019-03-20T07:41:17-07:00
Your company has helped touch the hearts of both new, and returning mutual clients across the US. Jerald Collens continues to show excellence in his career, and still goes out of his way to make himself available at all times to satisfy our demanding clients needs. We are proud to have a funding partner in our industry that is dedicated to finding a way to say “yes” to every single clients unique circumstances, when other funding sources typically say “no”.

Malcolm, President Specialty Contracting Company

Judi, thanks for your support. We are building something here and having folks like yourself on our side makes all the difference!
Global Financial and Leasing Client Testimonials
2019-03-20T07:22:06-07:00
Judi, thanks for your support. We are building something here and having folks like yourself on our side makes all the difference!

T. Poague

Been with these guys for over a year they helped me get my business started it hasn’t went as planned but these guys have worked with me in every way possible my hats off to to mr Ira ,Mrs Judi and mr Sean guarantee I will use them for any of my business financing if possible Great folks

Global Financial and Leasing Client Testimonials
2019-06-27T06:11:01-07:00
Been with these guys for over a year they helped me get my business started it hasn’t went as planned but these guys have worked with me in every way possible my hats off to to mr Ira ,Mrs Judi and mr Sean guarantee I will use them for any of my business financing if possible Great folks

IT/Telecom Vendor Sales Rep

Judi, the thanks is all yours!! You made this happen very smoothly. I am your loyal customer from here on.
Global Financial and Leasing Client Testimonials
2019-03-20T07:22:31-07:00
Judi, the thanks is all yours!! You made this happen very smoothly. I am your loyal customer from here on.

R. Lowery

Had a great experience with Patrick. He was very knowledgable with regard to our specific needs! Thank you!

Global Financial and Leasing Client Testimonials
2019-06-27T06:12:47-07:00
Had a great experience with Patrick. He was very knowledgable with regard to our specific needs! Thank you!

JH, Medical Vendor Rep

Thank you, Judi, you are the best ... So understanding of the complexities of this crazy industry and compassionate enough to work with people in difficult circumstances, there is a special place in heaven for you and Jim.

Global Financial and Leasing Client Testimonials
2019-03-20T07:26:35-07:00
Thank you, Judi, you are the best ... So understanding of the complexities of this crazy industry and compassionate enough to work with people in difficult circumstances, there is a special place in heaven for you and Jim.

Byron Waters

Great folks over at Global. Julian and his Team have helped us out several times always an easy process

Global Financial and Leasing Client Testimonials
2019-06-27T06:13:06-07:00
Great folks over at Global. Julian and his Team have helped us out several times always an easy process

CP – Medical Vendor

I want to thank you both so much for doing a wonderful job with my customers. You truly go the extra mile to assist them with their financing needs.
Global Financial and Leasing Client Testimonials
2019-03-20T07:32:35-07:00
I want to thank you both so much for doing a wonderful job with my customers. You truly go the extra mile to assist them with their financing needs.

Alyson

Very good people.

Global Financial and Leasing Client Testimonials
2019-06-27T06:13:28-07:00
Very good people.

SS, Medical Vendor

I certainly appreciate all the effort and hard work that you put into our customers. Your dynamics show us even when the financial situations are shaky that you still come through with positive outcome. Thank you so much for your hard work!
Global Financial and Leasing Client Testimonials
2019-03-20T07:32:54-07:00
I certainly appreciate all the effort and hard work that you put into our customers. Your dynamics show us even when the financial situations are shaky that you still come through with positive outcome. Thank you so much for your hard work!

Michael B.

Not be any happier with this company.

Global Financial and Leasing Client Testimonials
2019-06-27T06:40:57-07:00
Not be any happier with this company.

President, Plumbing Company

Just wanted to thank you again! I just picked up five new vehicles from a lease I acquired from your friend! I am so excited! Again I cannot thank you enough for all that you have done for me!
Global Financial and Leasing Client Testimonials
2019-03-20T07:37:24-07:00
Just wanted to thank you again! I just picked up five new vehicles from a lease I acquired from your friend! I am so excited! Again I cannot thank you enough for all that you have done for me!

Hollie Aneshansley

Amazing opportunity these wonderful people gave me♡

Global Financial and Leasing Client Testimonials
2019-06-27T06:41:30-07:00
Amazing opportunity these wonderful people gave me♡

President, Plumbing Company

Just wanted to thank you again! I just picked up five new vehicles from a lease I acquired from your friend! I am so excited! Again I cannot thank you enough for all that you have done for me!
Global Financial and Leasing Client Testimonials
2019-03-20T07:37:57-07:00
Just wanted to thank you again! I just picked up five new vehicles from a lease I acquired from your friend! I am so excited! Again I cannot thank you enough for all that you have done for me!

Shaun Land

Great organization to work with. Very friendly staff and a good business partner.

Global Financial and Leasing Client Testimonials
2019-06-27T06:41:50-07:00
Great organization to work with. Very friendly staff and a good business partner.