What is the Difference between You and My Bank?

As we look back on 2020 and enthusiastically welcome in the New Year of 2021, we reflect on the most commonly asked question last year. Beating out, “what’s my rate?” and “how fast can you get it done?” is the most frequently asked question, “WHAT IS THE DIFFERENCE BETWEEN YOU AND MY BANK?”

There are many but here are the TOP 5 differences:

• Banks have stricter guidelines hence the small business borrowing credit crunch which we’ve experienced the last few years. FICO scores should be above 700, cash flow strong, sales stable and equipment which is standard. Our guidelines are much more flexible and we finance companies, equipment and projects which the bank would never consider; of course just like banks, the higher the risk, the higher the interest rate.

• A bank is one direct resource, if they say NO then you are out of luck – no equipment loan. They certainly are not going to refer you to another bank for that loan. We have numerous investors and wholesale lenders; if one says NO then we can approach several others at one time increasing your chances of getting approved and funded.

• Banks require that you have a “relationship” with them; that means you do all your business with them and keep all your money there. If there is no relationship, there is no equipment loan for you. We work on each finance request as a separate and independent transaction; no relationship needed. We do not do banking transactions, only equipment financing and leasing.

• Banks loan on “standard industry equipment” which means it cannot be customized or unique and it must have a historically good resale value. They loan on “hard” assets which means they will shy away from “soft” costs like installation, warranties and consulting fees. We finance unique newer technologies and also cover all labor, installation and shipping costs and are a 100% financing source. We do not limit the type of equipment or any costs which a project may include and we do not require any down payment.

• Banks, even the smaller community ones, have 3 levels of credit approval which means you better have time on your hands. Even good credits can take several weeks for final approval. We have 1 level of credit approval which means once we have reviewed and packaged your financials, one underwriting team will make the decision on whether you are approved or not. Established companies can be approved in just a few days.

Banks have a specific part they play in your business but we feel we have a competitive advantage when it comes to financing equipment. Our goal is to get each finance request approved and funded. If needed, we “structure” your request to bring out the strongest points of your business. We want your business to grow, we want you to be successful and partner with you along the way to be successful as well.