Start Here October '20

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S T A R T H E R E 2 0 2 0 GETTING APPROVED Whether applying for financing or leasing, the credit application and underwriting process are identical. For most applications, the hopeful lessee submits a one-or two-page form along with backdated bank statements. To speed up the process of appli- cation, Jung tells business owners to apply for at least 51% ownership to get approval. "For more challenged credit, we may require 100% ownership listed on their application." He adds that an invoice needs to be submitted with an application so the lender can verify the equipment and supplier or vendor. If business owners are unsure about any portion of a financing or leasing application, they're encouraged to sit down with a finance manager to ensure the form gets filled out in its entirety, they provide the correct bank state- ments, and submit a quote from the equipment vendor. Having these boxes checked will help speed up the applica- tion process. Aside from submitting a properly filled-out application, there are a few tricks of the trade the finance experts want to share to ensure graphics pro- ducers can grow and prosper in the ways that best suit them. First thing's first, register your busi- ness. "It is more difficult to get a customer approved as a startup business. Startups are higher risk and usually come with a higher interest rate due to that fact. Once a cus- tomer has started and been operating for at least a year, they can benefit from lower interest rates and better terms," says Jung. However, Kroll discloses that custom- ers with established, clear credit—whether they have an existing business or not—are guaranteed a better chance of approval. If you are an established business, Bourdon suggests creating term accounts with sup- pliers and strongly encourages paying bills on time or even early. 79

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