FAQ – Broker Community

Would TEAM consider leases up to 60 months, especially when the collateral is stronger?
Though many customers benefit from longer terms, historically C-Credit customers that default will do so somewhere between 8 and 20 payments. The dollars lost from defaulted leases are too high to offset the customers that do pay for their entire lease term. Additionally a long term, high rate lease can ultimately become a financial burden to the lessee. When C-Credit is viewed as a “bridge to success” it readily fulfills a lessee’s needs until they can mature their businesses and qualify for standard credit. Shorter term leases reduce risk for the funder and reduce costs for the lessee, which becomes a healthier transaction for all parties.
Would TEAM consider offering lower rates for B-Credits?
The market is currently in high need for funders in the buy rate range of 15-20%.
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.
Can TEAM teach us how to successfully find & submit C-Credit applications?
We receive this request often. You will readily find an abundance of C-Credit customer types once you increase your personal awareness. It’s kind of like buying a new car… once you have one you begin to notice how many other cars are just like yours. A successful C-Credit transaction begins with setting realistic expectations for your lessee; the key is preparing them for the telephone interview. Most funders do not talk to the lessee. The interview between TEAM and your lessee is the where the magic of C-Credit happens. Because TEAM does not credit score you have an opportunity to help your lessees plan for an approval by sharing their story with a TEAM credit manager. Most customers are approved based on many intangible discoveries and common sense. We don’t mind past credit hiccups and you are welcome to sit in on these telephone interviews at any time.
Can TEAM help you improve your closing rate with C-Credit customers?
There is no question when the rate is high and lease terms are short that some customers cannot afford the payment. Successfully closing a C-Credit customer is NOT about rate. It’s about helping them recognize the value of having their equipment OR the fear of not getting their equipment. As long as you can help them recognize the value of obtaining the equipment and generating a positive ROI then their motivation will remain natural. Customers who cannot afford the payment on shorter terms are simply not a fit.
Can TEAM approve leases on an Application-Only process?
When working with “standard credit” customers, an application-only process does work. However, since TEAM does not credit score, the odds of a C-Credit customer obtaining an approval go way up when a full financial package is reviewed. The telephone interview also has much more meaning. The materials provided enable us to discover the strengths of your lessee and find ways to create an approval with terms & structure that fit for your lessee.
Can you teach us how to read financial statements?
Yes! Call any time to setup a tutorial with a TEAM Credit Manager. Whether you are submitting to a C-Credit funder or a standard credit funder, you must know how to read financial statements. As you know, the “application-only” market has diminished. Most funders cannot afford to operate solely on an app-only process. If you can read financial statements, you will easily expand your capacities to fund more leases. Call anytime to discuss your financial statement questions.
Can you help us identify where to find qualified lessees and vendors?
Yes, we can definitely help you identify qualified customers for your C-Credit and your standard credit customers! This latest recession has been a blessing in disguise. We have identified 2 distinct market segments, one being substantially stronger than the other. Weaker lessees typically have 6 or fewer employees, with annual sales volume below $500,000. They frequently offer a product or service in a retail environment (B2C: business to consumer). The stronger lessees typically have 8 or more employees, annual sales volume greater than $1 million and offer a product or service in a commercial environment (B2B: business to business). TEAM will fund leases for both of these customer profiles, but you will have more success when marketing yourselves to B2B customers with sales volume greater than $1 million in annual revenues.
How is C-Credit different from the app-only process?
When submitting credit applications to funders that approve credit based on application-only, you are being asked to find customers that fit in to their credit window. This process is usually easy to follow and can be fairly predictable. This is how the leasing industry has functioned for several years.

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

Do I need to personally guarantee my lease if my company is a corporation?
Yes. TEAM requires that all principals of a business guarantee their lease. A public corporation may be the only exception whereby a personal guarantee will be waived.
Will TEAM pull my personal credit report?
Yes, TEAM requires that the Leasing Broker submit applications with a recent credit report for each owner of the company. Upon receipt TEAM will then pull a different credit report as a part of our standard credit approval process.
Why does TEAM require a telephone interview?
If you are new in business or have had previous credit issues, we find that there are many business operators that deserve credit if given an opportunity to “tell their story”. An interview helps us understand how you intend to operate your business. It allows you to demonstrate your organization skills, integrity and describe any issues that do not show up on your credit reports & financial statements. Therefore we are eager to talk to every customer to make sure we understand your business and that you have the potential for positive cash flow. We believe that common sense should determine the final credit decision.
How long does the credit approval process take?
About a day! TEAM funds all transactions with its own capital therefore all customers are approved in-house. Once we receive the full financial credit package from the Leasing Broker, TEAM will interview the Lessee and render an immediate credit decision. In most cases this will take about a day.
What if I need to lease another piece of equipment at a later date?
TEAM works exclusively with Leasing Brokers and does not accept applications directly from lessees or vendors. All repeat customers are referred back to the Leasing Broker. TEAM will fund repeat customers only with the Leasing Broker’s permission.
Can I pay off my lease early?
Yes! You are welcome to pay off your lease at any time. There are no penalties. In fact TEAM will provide an early-payoff discount. If you pay off your lease within the first half of your lease you will save 10% off the remaining stream of payments.
What happens to the equipment at the end of the lease?
You will always have an option to own your leased equipment. TEAM will provide you with a purchase option at the time you sign your lease. Upon termination, it will be your option to keep the equipment or return it for a refund of your security deposit.
Do you require additional collateral?
TEAM does not require additional collateral for the majority of funded leases. Leases are generally approved based on your capacity to repay. From time to time additional collateral will be considered to mitigate risk. This can be:
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!
What if the equipment is being purchased from an individual?
Private party sales and used equipment are okay. In some cases title searches are necessary. TEAM reserves the right to interview the equipment seller.
What if the equipment is being purchased from an auction?
Equipment may be purchased from an auction. You’ll need to know the approximate equipment cost and your credit will need to be pre-approved so that you can act quickly at the auction. Upon approval TEAM will issue a “letter of credit” to be presented at the time of your purchase.