How would you like to get ahead of your company’s next equipment lease approval? By preparing a featured lease package ahead of time, you can speed up the approval process by days. Put the information needed for lease approval in the hands of your lease bidders ahead of time. Providing this information up front will result in more competitive quotes and a much quicker response time.

Include the following:

o Company Background: This ‘mini-business plan’ consists of two to three pages that discuss your company’s products/services, business description, business history, key managers, competition, value proposition and the marketing strategy. Also include the number of employees and office locations. Some background information also includes highlights of the financial statements and projections.

o Three years of financial statements and interim results: If you have been in business for three years or more, leasing companies expect your company to have financial statements and make them available. The exception to this requirement are small lease transactions for equipment costing less than $100,000. If your business has been in business less than three years, file returns covering your time in business. Interim statements must cover the period from the end of your company’s most recent fiscal year to the most recent month the financial statements are available.

o Forecasts: Forecasts that include income statements, balance sheets, and cash flow statements for a period of at least three years are very useful for leasing company credit committees. These statements are the best way to quantify your company’s plans. Include a summary of the business assumptions you used to develop your projections.

o Key Management Biographies: Include biographies of senior managers responsible for key areas of the business. Discuss your previous positions, experience, length of experience, and educational background.

o Commercial and bank references: Include at least three bank and/or commercial references of your company. These references should list the appropriate contact names, addresses, and phone numbers. It is best to select references with long-standing relationships with your company.

o Equipment Description: Leasing companies care about the equipment you will be renting. They want to know what it is, what it does, the number of units of equipment, and the cost per unit. They may also want information on equipment manufacturers/vendors.

o Discussion of significant company developments: If your company has had recent significant developments, whether good or bad, it is best to disclose them up front. Positive company developments may include new awards from large companies or a substantial increase in business. These developments may have a favorable impact on the terms and approval of your lease. Conversely, negative developments will require proactive discussion to secure any concerns the leasing company may have.

o Discussion of any problem areas – If there are problem areas in the business, try to anticipate the questions that might be asked about these areas and answer them in advance. You’ll save time by preventing predictable issues from disrupting the lease approval process.

o A/R and A/P Aging: Many leasing companies request accounts receivable and accounts payable aging reports. These reports provide snapshots of two important aspects of your business’s health: how effectively your business is collecting sales revenue, and how well it handles payments to vendors and creditors. Save time by producing these reports in advance.

o D&B Report: Most leasing companies request Dunn & Bradstreet reports or other credit reports on prospective customers to obtain a third-party credit assessment. You may be able to speed up your lease approval by requesting a D&B report to submit with your lease package.

o Venture Capital/Investor Information: If your business is backed by venture capital or outside investors, it is best to provide the leasing company with investment information. Include the names and contact information of the venture capitalists or investors. Also include the dates, amounts, and per-share values ​​of the investments.

Most business owners are not fully prepared to expedite the lease approval process. They wait until the landlord requests information that almost all leasing companies will need for an approval. Why slow down the process for days or weeks while you work to produce predictable information? Use this checklist to stay ahead of the game and receive the best deals.