Did you ever wonder why lending companies offer approvals with an expiration date? 

Most people would say has to do with the possible changes in credit over time, but this is not always true. It has to do more with the funds being reserved for that certain business. 

When a lender provides and approval, those funds are then set aside for that one customer and can’t be accessed or offered to anyone else. This is done in order to minimize risk, but at the same time maximize the lending potential. Lenders will reserve funds for any customer or business for up to 90 days.  Within that time a customer can access those funds before that approval expires. 

Should the approval expire, the customer can opt to extend the approval or choose to void the approval. If the customer voids the approval those funds would then be available to another prospective customer in need of equipment for their business.

If you are interested in obtaining equipment or a small business loan for your business, or would like to l earn more please give us a call and talk to one of our account managers today.