Business Credit Requirements – Have Things Changed During Covid?

By | July 30, 2021

I’ve been asked more than once if Covid has affected the credit requirements for businesses looking to finance equipment.

equipment finance requirements

The short answer is “no, not for us”. There are lenders that have changed their requirements (specifically lenders that already took on high-risk loans), but Crest Capital’s requirements are exactly the same as they were pre-Covid.

And with that said, this is as good a time as any to go over our basic credit requirements. We’re an equipment financing company that specializes in working with successful small and mid-sized businesses looking to grow. 

So what does “successful small and mid-sized businesses looking to grow” mean in a nutshell? It means:

  • Two Years in Business. No less, and no exceptions. Our favorable rates and restriction-free terms are specifically tailored to companies who have stood the test of time. 
  • Demonstrated Revenue and Profit. Again, we have the most favorable rates and business-friendly terms in the industry. But we can only offer those because our customers are already profitable. They don’t see the loan they take from us as a “risk” like a recently minted business with no revenue would. Our customers already generate sufficient revenues to make the monthly payments. To our customer base, financing equipment is a smart business growth strategy rather than a way to address a lack of revenue. 
  • No bankruptcies in the past 7 years.  Pretty self-explanatory. And again, no exceptions. 
  • Industry. We work with almost all industries except owner-operator tractor trailers, and we generally do not work with the food-service industry either. The good news is both of these industries have their own specialized lenders.

Note – the preceding requirements are a baseline for a blog post, and do not guarantee any approval.

As I stated, our customers see financing as a component to growth. A brand-new entity typically needs financing to simply exist, and there are lenders that specialize in that. On the flip side, our customers need financing to grow. There’s a big difference. 

We like to say “we help successful companies become more successful”.  It’s how we were pre-Covid, and it’s exactly how we are now. 

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