The Credit Process
Every credit decision is
part science (hard facts and actual credit history),
part statistics (similar equipment financed by similar businesses under
economic circumstances combined with the results of a proprietary credit scoring model and
occasionally, even a bit of "intuition"
based on having had the
opportunity to review thousands of funding requests over a period of 33 years.
The Credit Review
A credit review forms the basis for the decision to extend credit to a
business. We want the process to be quick, accurate and most importantly
fair--to the lessee looking to acquire equipment and to our owners who's funds
are being committed. First Capital's QuickLease™ application for equipment under
$75,000 (for example) is just one-page and does not require the financial statements or the
extensive business plans typical of bank financing.
One Question We Probably
How much money
did you make? Surprised? Most smaller businesses don't have extensive
operating histories, nor do most go to the expense of ordering audited (or
review-level) statements. Even if a business offered financial statements
(audited or internally-prepared), most credit analysts wouldn't have time to
"analyze" them anyway. Your cash flow, however will get lots of
attention, through analysis of bank balances, trade references and debt.
About "Credit Shopping." Don't Do It!
Here's why: Too many inquires in too
short a time period can significantly lower your credit rating (score) as each inquiry
becomes a part of your permanent record and will be viewed by subsequent lenders.
Your Credit Score Can
Drop 10 Points
...For EVERY Inquiry You Authorize!
underwriters will automatically disqualify an applicant with "too
many" recent inquiries. Release your credit
"judiciously," to only as few lenders as you absolutely need, to meet
your goals. This is a classic example of when "more," is not
"better." Never accept an offer that's not right for you.
That's the time to shop, but again, one-at-a-time!
You Must Shop...Here's
One Way to Protect YOUR Credit!
Run your own credit here
and submit your credit report along with your application while in "the
shopping phase." A "3-in-1" report will show them anything
they need to know to screen you in, or out. Do not authorize anyone considering
your application to run your credit unless they are SURE that the
credit meets their criteria, i.e. they would approve you. Almost any
creditor will tell you that they will have to run their own bureau
as a conditional of actually funding the transaction (and that is true), BUT you will save
yourself and "your credit" countless, score-lowering inquires from those
who may well have screened you out as soon as they reviewed the credit.