FAQ – Broker CommunityWould TEAM consider leases up to 60 months, especially when the collateral is stronger?
Since 1990 there have been 3 major market recessions; 1990, 2001, 2008. During all 3 of these market downturns the primary funders exiting the market have been the B-Credit funders, those offering rates in 15-20% range. History dictates that a portfolio of B-Credits has a combination of customers that are not standard credit, yet would be except for some minor hiccups in their personal or business backgrounds. Though there are some pockets of success in this sector, this combination of weaker credits and mid-teens rates experiences default rates beyond repair when the economy weakens.
Customers that do not fit the credit scoring model require a little more intuitiveness to understand where their potential for success may be. At TEAM, we know many lessees will endure credit hiccups at some point in their business. We also believe many of these people deserve credit if given a chance to tell their story. TEAM does not credit score; instead we look for trends vs. isolated cases. On most occasions, it is possible to plan-for-an-approval by helping your lessee set the proper expectations.
Feel free to get creative and explore different options with your lessees. Keep in mind that C-Credit lessees need a funder that will think outside of the box. This is commonly the only way to help them re-establish their poor credit history. With a little creativity you can now assist your C-Credit customers with funding that will jump start their businesses and reward you with thousands of dollars in commissions from what used to be dead deals!
FAQ – Lessee Community
1. Larger security deposits
2. 1st or 2nd liens on real estate OR
3. Titled vehicles that are paid for.
Call anytime to discuss various ways to structure an approval for your business. We may even have some ideas for you!