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Business Owners With Poor Credit - Consider a Collateral Lease

By Rob Renk

If you are a business owner with slow pays on your credit, you may want to consider a Collateral Lease for your next equipment purchase.

It has been a tough couple of years. It finally looks like the economy may be gaining traction to accelerate again. Even though you have tried to pay all of your bills on time, many of your clients have been slow paying you, which in turn has given you some cash flow issues and has made you late on some of your payments.

Things are now beginning to look up and you need to purchase a new piece of equipment to expand your business or to garner that new contract. The problem -- the bank is telling you no.

Here is the solution to your problem.

If you are a business owner you can look into using a Collateral Lease to finance your next equipment purchase. This type of lease allows you the ability to get financing even if you credit scores have dropped recently. There are no restrictions as to the type of equipment that can be leased, your credit scores, or time in business. Plus -- no financial paperwork is needed. Pricing for this program is determined by your credit scores. No recent foreclosures are allowed and you must be current on your mortgage payments at the time of application.

The reason this type of financing is made available, is that sometimes bad things happen to good people. Some lenders can look beyond just your past credit situation, but they do ask for extra collateral to secure your deal in return.

You must have additional collateral in other hard asset equipment and/ or have commercial or residential real estate equity. The lender will consider the auction value of your hard assets to determine the value given to your collateral. As for your real estate, you need to have at least 30% or more in equity for it to be used as collateral. You must also be a homeowner for any deal in excess of $40,000.

Remember this is a possible solution for you when your bank tells no. There may also be other program options available to you that your bank does not offer. It is always in your best interest to look around to find the best deal for your particular situation.

A Collateral Lease may be the best solution for you to get financing quickly if you need the equipment now to get the job done.

Rob Renk writes about business credit and financing. He specializes in writing about equipment financing/leasing and can provide solutions for your equipment financing needs. If you wish to discuss your situation at greater length -- contact Rob directly @ 303-521-7622.

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