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Speed up your funding. We detail the 3 pillars of fast approval—Collateral Value, Repayment Capacity, and Creditworthiness—explaining the exact documents your underwriter needs for an expedited Equipment Financing decision.
In the world of equipment financing, the difference between getting the capital you need in a few hours versus a few weeks often boils down to one simple factor: preparedness. For businesses seeking fast approval, understanding the underwriter’s perspective is the key to minimizing friction.
Your NLCG Financial Specialist isn't looking to create roadblocks; they are seeking clear evidence that the financing is a sound investment. Here is what your underwriter truly needs to see to greenlight your application quickly.
The underwriting process hinges on verifying three core pillars: Creditworthiness, Collateral Value, and Repayment Capacity.
The most important factor in equipment financing is the collateral—the piece of equipment you are purchasing (e.g., Skid Steer, Dozer). The lender wants to know its market value and condition.
Underwriter Needs: A clear, detailed invoice or quote from the vendor, including the make, model, year, and serial number. For used equipment, recent photos and detailed maintenance records (if available) are extremely helpful to confirm the asset’s condition.
The NLCG Edge: Because the equipment itself secures the loan, NLCG Underwriting Guidelines can often approve deals based on the strength of the asset, even if other areas are imperfect.
While credit history is important, your ability to handle the new debt is paramount. Lenders want to see a predictable pattern of cash flow that easily covers the monthly payment.
Underwriter Needs: Recent business bank statements (typically 3–6 months) showing consistent deposits and positive balances. For transactions over a certain dollar threshold, a profit and loss statement or two to three years of tax returns may be necessary to verify longer-term stability.
Action Item: Organize your financial statements. Well-prepared applications with complete financial information typically receive faster decisions. For more on this, consult the U.S. Bank's business lending requirements.
Your personal and business credit history provides a snapshot of your past borrowing behavior. This is crucial for determining the final rate and terms.Underwriter Needs: Your personal details (Social Security number and driver's license) to pull a credit report. The underwriter looks for credit scores above 600, timely payments on past debts, and reasonable debt-to-income ratios.
Tip: Review your credit report for errors and be ready to explain any isolated issues, as transparency speeds up the review process.
Internal NLCG Analysis shows that an application submitted with all necessary financial and equipment documentation receives funding up to 80% faster than applications that require follow-up. This preparedness is the simplest, most effective step you can take toward securing your capital today.
