What to expect when trying to approve a lease

We like getting questions and it was asked if we could talk a bit about the process to approve a lease.  So, breaking that down to (a) Muni – Large and Small; (b) App[lication] Only commercial; (c) Full Package Commercial; and, (d) Structured Transactions, let’s start with the Muni or MUSH market – Municipal, University, School and Hospital that includes all Fifty States and all of their “subdivisions” – yup, a darned long list.

The APP[lication] Only Market is just like it sounds – for transactions generally < $250,000, the borrower/lessee only needs to complete a document that’s maybe 2 or 3 pages long.  When the equipment is pretty straight forward and the lease term is < 5 years, this can be very efficient and while it may result in a slightly higher interest rate, you can get your project approved easily.

When customers readily have 2 or 3 years of audits; a current budget; and, some basic statistics re: their tax base – enrollment information for schools, movements and revenue for airports, admission data for hospitals and population & tax trends for states, cities, counties and special districts this level of data can often shave a few basis points off your interest rate and will almost always be required for transactions that are > 5 years; complex equipment or systems; and,  when there are special circumstances such as tax credits coming out of the INFLATION REDUCTION ACT, (a new twist since these benefits were generally denied to the MUSH market before), or things when your project isn’t quite vanilla.

With these data in hand and a full story about your project and equipment, we generally provide a formal approval of your transaction within a couple of days and give you a “guideline” decision darned near immediately.  Remember – the MUSH market is literally approved over 98% of the time!

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