Why Does Equipment Financing Require a Credit Check?
Those who are looking for no credit check equipment financing would be frustrated to discover that having bad or no credit precludes them from several financing options. Lenders in the US care about borrowers’ personal credit, but have you wondered why this is the case? If you find out what your credit score really shows up as, then the answer to this would make more sense to you. Credit based financing may also be a great option for these individuals.
Your personal credit score shows how responsible and reliable you have been with your finances. Most significantly, a personal credit score is a sign of how often one pays his or her credit accounts in full and on time – which is of particular interest to small business loan providers.
If one has a long history of settling what he or she owes when the payment is due (and has a great personal credit score to back it up), then lenders can have more confidence you will repay what they lend you. The opposite scenario would make them doubt whether this is doable from your side. For this reason, nearly all lenders check the credit scores of people that approach to borrow from them, so much so that many believe that no-credit-check financing options do not really exist.