How funding companies decide which businesses get credit approvals and which ones do not is challenging for any lender. Funding companies that have far more do's than don'ts are considered liberal. On the other hand, funding companies that have more don'ts than do's are considered more conservative. Either way, this sets the tone for many different things like approval, pricing, terms, and paperwork details. The more liberal the policy is, the easier it is to get credit, but the higher the pricing can be. The more conservative, the more challenging it is to extend credit, but the better the pricing.

Tri-Lease takes a "Common Sense Approach to the approval process. Let me explain what I mean by a "common sense" approach. During the credit process, we look at a lot of different factors before we can approve someone.

Things we look at for credit approval:

• How long a company has been in business
• The type of business
• The nature of the equipment in relation to the business
• Overall credit profile of the business and the owners - Sometimes we have to ask customers for "banks" to see if we can get them approved. The word "banks" refers to the current year’s tax return for the business and 3 months of bank statements. We ask for them to get a better look at the business's cash flow.

If we request "banks," Some Key Things We Look At:

• Sufficient Deposits - looking at the ratio between annual revenue and the amount requested for funding.
• Average Daily Balances - Need to look at the last 3 months to see if there is a natural month-to-month cash flow.
• Non-Sufficient Funds - These are fees charged by your bank for not having enough money in your account. If you have any, we are trying to see if it is a one-time event or a recurring issue.

All of the above factors play into our credit approval process. That is why we say we have a common sense approach to leasing. Unlike most lenders that will only look at a credit score. Because we look at all these different factors, we can approve funds for a larger range of businesses.

If you would like to learn more about Tri-Lease or the different programs we offer to businesses of any size, please feel free to give us a call today.