What to Do if Your Copier Lease Application is Declined
If you are starting a new business, or have a business that have had some hard times due to the pandemic, it is possible when trying to lease a copier, you would be declined. If you are declined for a copier lease, what can you do?
The first thing is a PG most dealers will try
A PG is a “Personal Guarantee” – Meaning that even if the business totally fails, the owner is taking on the personal liability of the equipment against their own credit. The idea from the bank is that if an owner is confident enough in their business to sign a PG, it is more likely to be paid off. Of course a PG comes with risks too. What happens if the business indeed fails? Then, this liability on top of the business failing falls on the business owner. It can be a salt in the wound situation.
The second thing a dealer will do is look at more favorable lenders
In English, this means we look for a lender who will take on the risk (at an additional cost and higher interest rate, of course) to take on the contract. If we can find a tier 2 lender who will take on the contract, it does mean higher costs, but doesn’t always require a PG for the owner.
The third thing we would do is look and see if we can just sell a copier
Maybe we have a small copier, or a used copier the client can afford to get them through the next year or two. This is better than no copier at all.
Then we may look at rental options
It’s better to get something than nothing, so our last option might be to see what we have around and if that can be rented out at a fair price. If that works, it can be a win / win. It can be like renting a home until you can afford to buy one.
If you have been declined on a copier lease in Virginia Beach, give us a call. We have all sorts of ways to get you printing and copying again. Your business needs a copier to run, and we lease, sell and rent copiers in Virginia Beach.