Top 6 Reasons Equipment Financing Is Rejected:
1. Not paying your current business vendors on-time.
2. Recent revenue (sales) declines that cannot be offset by assets and/or strong current cashflow.
3. Little or no capacity to guarantee the financing personally, in situations where the business is tight on cash.
4. Year-end losses that are not due to tax strategies (see #3 above).
5. Stressed personal credit (where personal guarantees may be required).
6. Underwriter lack of understanding and comparables for the equipment asset. This can be often be addressed by a Desktop Opinion of Value with comparables from Alan Ross Machinery, provided we have expertise in the subject equipment.
Typical Documentation Required For Equipment Financing:
1. Three years of business tax returns.
2. 2-3 years of GAAP balance sheets and income statements.
3. Interim statements for the current fiscal year.
4. Bank and lender statements.
5. Possibly personal financial statements and supporting documents.
6. An opinion of value conducted by an expert in appraising the subject equipment.
