Heavy Equipment Leasing With Good Credit vs. Poor Credit
Over the past few weeks we have received dozens of phone calls about credit and its impact on equipment financing. Based on those phone calls and our dedication to educate our client base as much as we can – we thought a blog post was appropriate.
About half the people we spoke with told us they have “poor” credit, which makes a big difference in financing rates and terms. By “poor” credit, we’re talking a credit score of around 600.
A Quick Example: let’s use a $50,000 piece of equipment:
What would leasing costs be for 4 years based on good, ok, or poor credit? Assuming you’ve been in business for at least two years, here are some examples:
With good credit (at least 675), costs would be somewhere around $1,100 a month (OAC)
With “ok” credit, 640-675, costs would likely be near $1,450 a month (OAC)
With marginal credit, 600-640, costs would be closer to $1,650 a month (OAC)
With bad credit, under 600, costs are going to be $2,450 a month or so (OAC)
If you have a credit score under 600, or a bankruptcy in the past few years, getting financed will be difficult regardless of who you try and work with.
If you have questions about your credit please call 949.225.1718 to speak with finance manager Dan Lund. Dan is an expert in equipment financing and will be happy to answer all your questions.
Dan can also be reached here: https://www.envisioncapitalgroup.com/ecg-financing/dan-lund-financing/.
Note: This blog post is not financing approval. A financing decision and the loan amount, term, and rate will be based on our review of your business and credit, and subject to our underwriting requirements.