Profitability
Is the company making money?
Can I get finance?
Our free credit check will guide you to make sure you have everything you need for a successful credit application. Our easy to understand traffic light system provides a unique assessment of your company’s ability to borrow.
leasingcalculator.co.uk only performs soft credit checks. This will not show on your company’s credit history.
Can I get finance? – you would be surprised how often we get asked this question even from long established big companies with a good credit history!
Let’s take a look at the key things leasing companies look for with regards to offering a credit approval:
Getting leasing credit approval for a new start company
Are you a home owner? If yes, and you have not even started in business, there is a good chance we will be able to get lease finance, normally for amounts up to £25,000. (subject to below) If no, it will be difficult. For all new start companies, leasing companies will ask for personal guarantees (excluding vehicle finance.)
They will ask to see your last three months bank statements and will undertake a personal search. If there are bounced payments or any County Court Judgements, then again, “computer says no.”
We need to do a bit more work to obtain a credit approval for a new start company compared to a company with a trading history. Any positive appropriate information will help such as your experience in the sector, other investments, contracts. Budgets, a business plan or a cash flow statement might also help.
Getting credit cleared for a more established company
It’s a lot easier gaining a credit acceptance for a company that is more established. There will be financial information like audited accounts and bank statements. Here is what a leasing company looks for:
Leasing and County Court Judgements (CCJ’s)
Are there any CCJ’s registered against you or the company? If yes, we will need an explanation. Being straight, more often than not, leasing companies will decline the credit if there are unsatisfied CCJ’s. Their reason is simple, over time leasing companies have analysed their customers that have gone out of business and there is a strong correlation between a company failure and them having a CCJ.
Poor accounts
Leasing companies obtain information in the public domain about the financial affairs of a company. They are keen to see:
Credit rating
Some leasing companies focus on the credit rating of the prospect company. Credit ratings are created by companies like Experian and DNB to help companies work out how much credit to offer. The better the credit rating, the higher the chance of a credit acceptance.
What is the asset and why are you buying it?
You need to buy a brand-new machine to service a new customer contract is a better story to tell than you feel like having a large fish tank in reception. The asset might have a great resale value in event of a default, always valuable information to a leasing company. It reduces their risk.
What does your business do?
There are certain types of companies and organisations that some leasing companies prefer not to offer finance to. Foreign Embassy’s, political parties, businesses involved with guns or gentlemen’s clubs.
Many leasing companies are presently taking a more tough line with restaurants and the retail sector.
For the record, we have arranged leasing for Embassy’s, restaurants and we do a lot of business in the retail sector.
Directors and failed companies
Leasing companies look at the previous history of a director. If they have failed companies from the past, this does not help a credit approval. We look to find out what the circumstances are and provide a write up to help a credit proposal.
Management accounts, business plans and financial information
Supplying current management accounts sends out the message you are on top of the financial affairs of your business. If you have bank statements, cash flow forecasts and even a business plan, that will always help.
How Leasing calculator can help you?
Our job is to get you a leasing credit approval. We have years of experience in putting together your information to help support a positive credit decision. Even if you have a CCJ, have just started trading or do not have any management accounts, there is a good chance you will be one of the 90% of companies we can arrange leasing for. Call us now at Leasing Calculator.
