Kent Funding does not have “fixed guidelines” for evaluating our transactions. We understand that that our clients have had credit problems in the past and do not qualify for traditional lease financing. Therefore, we evaluate each application on an individual basis with an emphasis on the character and stability of the applicant. For this reason, below are certain areas we look at in the evaluation process.

Equipment

The value of the equipment in question is an important factor in the evaluation process. Kent Funding will determine the realistic resale value of the piece of equipment as well as how long it would take to sell the equipment. We handle both titled and non-titled equipment.

Additional collateral

All transactions are secured by additional collateral. The strength of a particular application rests in the amount of collateral that the applicant is willing to pledge. The additional collateral taken on any transaction should be equal to or greater than the value of the underwriting commitment in the lease transaction. Collateral may be in the form of a security interest in real estate or in equipment free of any encumbrances and fully owned by the applicant or other guarantor.

Interview Process

Kent Funding prides itself on interviewing all clients. We are firm believers that in order to evaluate a transaction, we need to hear the real story behind the client’s past credit problems. We understand that events happen in people’s lives that adversely affect their credit. We do expect the client to provide a reasonable explanation for the past due items listed on their credit report. During this process, we are making an effort to determine the character and stability of the applicant. Historically, a person of good character with strong ties to the community is more likely to meet their financial commitments.

Financial Overview

Kent Funding tries to determine whether a certain application makes sense for the client. At times, we request that the client prepare a budget, which will reflect their expected income as well as realistic expenses.

Security deposit

On most transactions where the additional collateral is either titled or non-titled equipment, a security deposit is required. On the vast majority of transactions involving real property as additional collateral, no security deposit is required.

Please feel free to contact us if you have any questions or need any additional information about our underwriting criteria.