Question for Marv re: Business leases

[Pavlov]

Marv:

 

I would like to find out if my business, a C corp, would be approved for a lease or purchase of a new autombile. Are you interested in reviewing a quasi application for a business auto lease/purchase on this site? Or could you lead me to a thread which deals with the basics?

 

I am assuming you are reading this in your new home. If you are, CONGRATULATIONS!!!!!!

 

Your pal, Pavlov

[MarvBear]

Make whatever alterations are necessary to the personal credit application I have stickied.

 

 

keeping in mind that the Biz Info screen will be similar to THIS

 

if a biz with guarantor will look like THIS

 

The collateral screen will look like THIS

[Pavlov]

Make whatever alterations are necessary to the personal credit application I have stickied.

 

 

keeping in mind that the Biz Info screen will be similar to THIS

 

if a biz with guarantor will look like THIS

 

The collateral screen will look like THIS

 

 

Yes, I was going to use the personal credit app you provided if you wanted to give your opinion about the lease, no problem. A couple of questions:

 

Will the app necessarily ask for the principals' SSN? If I know they are going to pull DnB (as Ford has told me locally), and I know I have a Paydex of 99 (I don't, but just as an example), would they not just sign off on it? Or is a score even less meaningful than in personal auto scores, as you have told us?

 

Second, on the biz checking account, do they have the ability to get average balances on my biz checking account, or just get the balance when they check it?

[MarvBear]

The BIZ APP does not ask for a Social Security number if JUST THE BIZ APP.

 

They may call your bank, I do not know what information your bank will release to a potential creditor.

[Pavlov]

Marv:

 

The link you provided for the biz app in a prior post asked for EIN AND SSN, and the SSN was starred as if reuqired. That is why I asked about the SSN.

 

EXP Biz:

 

Age of business:

 

two years

Net sales 2004 $600,000

Net sales 2005 $1.1 ml

 

How long have you been on file with DnB and EXP Biz: 2 years

 

Previous Automotive Credit History:

Do you have an open auto loan? None shown on either biz report

Will this loan be a trade-in? no

Number of late pays within the last 12 months? none

Number of late pays within the last 13-24 months? none

Current open auto loan is financed with? none on biz reports

Current open auto loan payment is? none shown

Estimated amount you may be upside down in this vehicle? N/A

Rate this open auto loan from 1-10 (10=BEST) N/A

 

Revolving Credit History: good (80 paydex)

Total number of revolving accounts? 9 on DnB, 7 on EXP Biz

Total percent utilization overall? one percent utilization reporting, using open lines and Balance/CL

 

Your Information:

How long at residence? 2 years at current address listed on Biz reports

Rent/Homeowner/Live with relative? N/A

How long at current job? Self employed

Total Provable MONTHLY GROSS INCOME? $7,200

Provable via computerized paystub or what method? W-2

 

Your Downpayment in CASH: $1000-$5000

Rebates not considered; Trade Equity not considered: CASH ONLY PLEASE INPUT.

 

Does any credit repository contain any Public Record? N/A

Is so, please describe.

 

Does any credit repository contain any Collection Account(s) N/A

If so, please describe.

 

New or Used Vehicle you are considering; please describe: Toyota Solara (MSRP $25000)

 

Your creditworthiness on a scale of 1-10 with 10 being the best:

OVERALL credit: 80 paydex

Installment Credit History:

Revolving Credit History:

[MarvBear]

probably ask you for two years of audited financials and copy of Corp Res if incorporated.

 

If the dealer goes with TMCC, they may manually underwrite the loan.

 

You would have to provide Biz Credit references which they will check and may be a couple of days in queu before decisioning.

 

If dealer select OTHER non captive lender for a retail installment contract, it is the luck of the draw, system can auto approve as quick as I hit the submit key.

 

If you lease, ONLY do it thru the CAPTIVE.

[Pavlov]

probably ask you for two years of audited financials and copy of Corp Res if incorporated.

 

If you lease, ONLY do it thru the CAPTIVE.

 

How can I control whether an app submitted to Toyota is submitted to Captive choice alone?

[MarvBear]

become an F&I person like me.

 

Then you are in the driver's seat.

[Pavlov]

become an F&I person like me.

 

Then you are in the driver's seat.

 

 

So what you are really saying then is I can let them shop it, but I ought not accept it unless from Toyota, right? Sitting in the position of business owner looking to lease or buy under business name, I can control only the acceptance of an offer, not where they shop it.

 

Does anyone know if accumulated inquiries lower a paydex score? I have asked this till I am blue in the face over in Biz Credit Forum.

[MarvBear]

I dont know about inquiries and paydex score.

 

I will say any F&I person will try to talk you out of a purely BIZ APP, we all hate them.

 

If it is a lease it will likely ONLY go with the captive, If RETAIL INSTALLMENT could go other places other than the captive.

[hoapres]

The reluctance to do business loans without a personal guarantee is not restricted to auto loans.

 

MarvBear is absolutely correct that an almost if not total dislike among F&I regarding business loans without a personal guarantee.

[Pavlov]

I dont know about inquiries and paydex score.

 

I will say any F&I person will try to talk you out of a purely BIZ APP, we all hate them.

 

If it is a lease it will likely ONLY go with the captive, If RETAIL INSTALLMENT could go other places other than the captive.

 

 

Interesting comment about hating biz leases. Too few of them written by non fleet types, too many foreign variables? Why do you all hate them? One F&I guy I met today at a large Nissan dealership knew FICO backwards and forward, but knew nothing about paydex, business approvals, etc. Are local car dealerships THAT focused on consumer apps?

[hoapres]

The reluctance may be that for understandable reasons every business owner wants to separate his business from his personal assets. Lenders know this and almost invariably want a personal guarantee unless you are a sufficently large business entity that personal guarantees are a moot point.

 

If one is a large corporation then they are most likely dealing either with a corporate department of a very large dealership or if they are very big then they may have an arrangement to buy a LARGE number of vehicles at a very good price.

[MarvBear]

Automobile dealerships are geared toward a regular RETAIL/LEASE CONSUMER (read individual), not toward business applications. The paperwork is different and the signing is different. It is simply something we don't do in the normal course of business. BIZ APPS are the exception.

 

I have always had corporate accounts that purchase 25+ cars monthly, but those are always cash deals.

 

The single solitary business, that wants a retail finance contract OR a retail lease agreement is much the exception. as tjeu are done so infrequently.