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Equipment Leasing Report
Shop Until You Drop Can Kill Your Customer's Credit
... As well As Your Deal!
By Russell Abramson
In most situations where you take the time to shop for the best deal, you end up with the best deal. However, there is one major exception to this rule. In the finance industry "shopping" may hurt your chances of getting the best deal. You ask, "How can that happen?" Let me explain:
Let's say that you send your customer's commercial credit application to several different leasing companies shopping for the lowest rate. As a result of this "shopping," your customer's personal credit report will indicate that at least five recent inquires were made. Unfortunately, each inquiry negatively impacts your customer's overall personal credit rating, thereby decreasing the probability that his credit application will be approved. In fact, some leasing companies as part of their application approval process have built an automatic rejection factor into their scoring model if a customer's personal credit report exceeds a preset number of inquires within a specific period of time.
How do you solve this problem? First, gain more control over your transaction funding by working with a leasing company that does its own credit, documentation and billing. Secondly, try to get a competitive rate for your customer, not necessarily the lowest rate. Have you ever received a great rate from a leasing company that looked fantastic up front, but in the final analysis the leasing company was unable to fund that rate? Remember that it is much better for a vendor to be funded with a competitive rate than not to be funded with a great rate. Lastly, deal directly with a leasing company that responds quickly with both approvals and fundings. |
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ATTENTION
ALL EQUIPMENT VENDORS!!!!
End Of Year TV Promotion When You Fund $50,000.00 With Us Between Now And December 31, 2005. We Will Give You This LG 17 Inch LCD Flat Screen TV Model Number l172WT
To show our appreciation for your business, we are giving away these beautiful flat screen tvs to all our vendors who fund $50,000.00 worth of leases through us between now and New Years Eve, December 31, 2005.
Click here for our one page credit application which is good for leases up to $150,000.00 without financials or tax returns. We usually have a decision in 3 to 4 hours. Leases over $150,000.00 may require additional financials. Please feel free to call me at 631-845-7700 if there is anything I can help you with or if there any questions you may have.
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