What the funding sources look for:
1. Size Of The Deal
The smaller deals, US5,000 - $100,000 stand a greater chance of being funded, compared to multi-million dollar items.
2. How Long Has The Business Been Operating?
In general, startups and new businesses less than 2 years old, would not usually be funded. There are exceptions and some funders will gladly consider newer companies and harder to fund deals.
However, if the startup itself is intending to provide “Vendor Leasing” i.e. a leasing option to its customers that are buying its products, financing might be available – so long as its customers have been in business much longer than the startup vendor.
3. Type Of Equipment
Computer equipment, telecommunications, construction equipment, turcks, machine tools and generic machinery that is regarded as having a defined value and considered to be a liquid asset, are the ones most easily funded.
Specific purpose-built machinery is less likely to be funded, as well as equipment that has an inherent liability issue e.g. tanning beds.
4. Creditworthiness Of Proposed Lessee
This is very important as it is the Lessee that will be making the payments on the Lease.
Bankruptcies, credit card delinquencies, tax liens and judgments could damage the chances of funding.
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
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