Tips for Getting Approved
In Canada Lessors prefer to do business with established rather than new businesses. Having said that, if your business idea makes sense, you are a homeowner and have a clean credit record, it isn't hard to get up to $10,000 for a new business. But you may have to provide a Personal Net Worth Statement.
Businesses with a three year track record or more and again with an active (but not overactive as in heavy use of plastic) but clean credit record can also get up to $10,000 without much questioning.
For the $10,000 - $25,000 range some indication of volume and profitability together with a favourable banking relationship (ie say you do $500K in sales then an $80K line of credit 50% utilized with good fluctuations - would go down well).
For amounts over $25,000 at least two years financial statements are a must unless you are a "name". Statements should reflect a net worth about 4 x the lease cost, positive working capital and cash flow (net profit + depreciation) that is equal to approx 1.5 times the annual lease payments.
Some industries do it a little differently (trucking, printing etc) but the above guidelines are about where it is at. Of course if you want to put up your house equity or bonds you can get whatever that is worth etc...but do you really want to go that route (ie a mortgage may make more sense)?
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