Learn About Credit

How Does Central Leasing Extend Credit?

Your credit history is important when negotiating a lease with Central Leasing Corporation. When leasing equipment valued at more than $100,000, we require several forms of documentation. For leased equipment valued under $100,000, we do not require business plans or projections; our credit reviews primarily are based on your and your business’ previously demonstrated ability to meet obligations that are comparable to those for which you are now applying.

When negotiating leases for equipment valued under $100,000, we focus on these key areas:

• Time in business. Experience counts! Most of our programs require a minimum of two years in business under current ownership.
   
• Trade references. We will ask for information about at least two companies with which you have established trade credit (billing). We are looking at how you’ve managed those obligations for other creditors.
   
• Banking relationships. For programs other than new businesses, we request at least two years of commercial checking account history. We look at both current and average balances as well as extraordinary events like NSFs. Balances should be sufficient to meet all lease obligations as well as the day-to-day needs of a business of similar size.
   
• Personal credit history. Experience has shown that, in small and closely held businesses, there is a significant correlation between the principal’s personal credit and the overall financial well being of his or her company. We look for an established sense of credit although we have programs for those with credit challenges. We define a principal as any party with a 10 percent or greater interest in the company. Publicly traded companies or other larger businesses under current ownership for at least five years may request to be considered under one of our corporate guarantee-only programs.