Vendor Financing Credit Guidelines
Equipment Financing Tailored to Your Clients Budget and Funding Needs
Equipment financing is not a one-size-fits-all solution. Navigating the complexities of financing can be challenging, especially for those with limited experience. However, Liberty Capital has deep roots in the equipment leasing industry. With our extensive knowledge and expertise, we are well-equipped to handle all types of equipment financing needs.
We can break up multiple financing and exposures to accommodate lender’s exposure limit. This is just a guide. Not an absolute credit window. Each lender will have their own credit window but mainly follows the following exposure guidelines.
$3,000 – $49,999: 600 or higher
- Start up to 2+ years’ time in business, present control
- Credit Reports, 5yrs clear history, No major Derog, 7min Satisfactory trade
- Personal guaranty required with a Fair Isaac FICO of 600 or higher.
- Bank Statements Med-4 (No NSF’s allowed!)
- Comparable high credit, trade or personal ($35k+ through application & UCC)
- Multiple location w/ disclosure and landlord waiver
$50,000 – $100,000: 650 or higher
- 3 years’ time in business, present control
- Personal guaranty required with a Fair Isaac FICO of 650 or higher.
- Bank Reference—Low-5 (banks statements or Bank Rating)
- Company must be D & B Rated if not we need a comp rating.
- Comparable high credit, trade or personal (will pull biz credit for this)
$100,000-$150,000+ 650 or higher
- 3+ years’ time in business, present control
- Personal guaranty required with a Fair Isaac FICO of 650 or higher
- Bank Reference—Low-5 (banks statements or Bank Rating)
- Two (2) years business tax returns
- Two (2) years personal tax returns (for each owner)
- Personal Financial Statements
- Interim Financial Statements (P&L & Balance Sheet)
- Bank Reference—Med-High-5 (banks statements or Bank Rating)
$150,000+
- Two (2) years business tax returns
- Two (2) years personal tax returns (for each owner over 20%)
- Personal Financial Statements
- Current Interim Financial Statements (P&L & Balance Sheet)
- Personal guaranty required with a Fair Isaac FICO of 650 or higher
- Bank Statements —Med-High-5 (banks statements or Bank Rating)
- Debt Schedule (maybe required)
Additional Info…
- Labor, Delivery Cost & Service Contract–Up to 20% of the equipment cost
- Business credit review: Dun & Bradstreet, Paynet & Experian
- Bankruptcy will consider w/ reestablished credit (3+ yrs discharge/missed)
- Startup will consider w/ strong credit + down payment
- Home business will be considered as long as has DBA or business checking.
- Used Trucks, Trailers and Equipment will be viewed on a per asset, cost and client profile.
- Can finance up to 60 months on used trucks, trailers and equipment.
- Down payment may be required for equipment older than 7 years old.
Equipment Financing Tailored to Your Clients Budget and Funding Needs
Equipment vendor financing is a financial arrangement where the vendor (the company selling the equipment) provides or arranges financing for the buyer to purchase their equipment. This can be beneficial for businesses that need to acquire equipment but might not have the immediate capital to do so.
Here are some key points about equipment vendor financing:
- Direct Financing: The vendor itself may extend a loan or lease directly to the buyer, allowing them to pay for the equipment over time rather than upfront.
- Third-Party Financing: The vendor might partner with a third-party financial institution to offer financing options to the buyer. In this case, the vendor acts as a facilitator between the buyer and the lender.
- Leasing Options: Vendors often offer leasing options where the buyer can use the equipment and make regular lease payments. At the end of the lease term, the buyer might have the option to purchase the equipment at a reduced price.
- Benefits for Buyers:
- Improved Cash Flow: By spreading the cost of the equipment over time, businesses can manage their cash flow more effectively.
- Easier Approval: Vendor financing may be easier to obtain than traditional bank loans, especially for small businesses or startups.
- Bundled Services: Financing packages might include additional services like maintenance, training, or software, providing more value.
- Benefits for Vendors:
- Increased Sales: Offering financing can make it easier for customers to buy expensive equipment, potentially boosting sales.
- Customer Loyalty: Providing financing can help build long-term relationships with customers.
- Competitive Advantage: Vendors who offer financing options can stand out in the marketplace compared to those who do not.
***END OF CREDIT GUIDELINE***
Liberty Capital's Financing Program
Liberty Capital offers a comprehensive vendor financing program for used commercial trucks, used trailers, and used heavy equipment We cater to all types of dealers, vendors or resellers.
This program is designed to accommodate all credit types, including startups, ensuring that even businesses with less-than-perfect credit can obtain the necessary equipment.
Vendor Financing Features:
- 100% Pre-Funding: Liberty Capital can pre-fund the vendor 100% prior to delivery, ensuring that vendors receive their payment upfront.
- Soft Inquiry: We perform a soft inquiry on credit, which does not impact the buyer’s credit score.
- Bad Credit Options: We can finance buyers with bad credit as long as they can make a down payment ranging from 5% to 40%. This is particularly beneficial for those with marginal credit and startups.
Types of Leases Available:
- Operating Lease: The lessee uses the equipment for a specific period and returns it at the end of the lease term. This option is often used for equipment that may become obsolete quickly.
- Finance Lease (Capital Lease): The lessee effectively becomes the owner of the equipment, with the option to purchase it at the end of the lease term for a nominal amount.
- TRAC Lease: Commonly used for commercial vehicles, a TRAC lease allows for adjustments in the lease term or residual value to meet the specific needs of the lessee.
- True Lease: This type of lease does not include a bargain purchase option. It offers lower monthly payments and is often used when the lessee does not intend to purchase the equipment.
By partnering with Liberty Capital, vendors can provide flexible and accommodating financing solutions, helping their clients to acquire the necessary equipment while managing financial constraints effectively.
Why Liberty Capital?
- Proprietary prequalification calculator.
- Application-only up-to $350,000
- Section 179 potential tax savings
- Pre-Funding our vendors and dealers up to 100% before delivery
- Credit decisions in 2 hours or less
- Online equipment finance and lease docs
- 100% Pre-Funding Before delivery
- Soft cost financing, tax and installation included
- DocuSign app and docs for faster approval and funding
- Marketing material to help you sell
- Online financing proposal generators
- High Approval Ratio
Promotion for our Equipment Financing Vendors:
- 12 x $99 Promo: Customers pay only $99 for the first 12 months! This is a terrific way for customers to defer full payments – allowing equipment time to generate revenue.
- Value Program: ZERO payments for 3 months combined with competitive structures up to 84 months (about 7 years).
- $0 Down Payment for Equipment Financing
- Low Documentation and Admin Fee
- Referral bonus available
Preferred Leasing Vendors
Utilizing our extensive experience in commercial truck financing on concrete trucks, we can assist you in finding reputable vendors for new or used truck and concrete pump trailer. Concrete Pump Trailer is as much needed for most small job than a concrete pump truck or concrete mixer truck. Additionally, if you’re a vendor seeking financing for trucks, we’re ready to serve your needs.
What do I need to apply?
- ONLINE APPLICATION:You can fill out our application, upload and authorized us to process. We do soft-inquiry, and our lender will do hard inquiries once you are approved.
- Equipment Invoice orQuote for the truck or equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you.
- Banks statements (3-4 months) – Proof income, proof of banking, and proof funds availability in case down payment is needed and to match for ACH Payment Drafting – as an auto pay.