FAQS

We offer over 20 programs that have a tiered approach. We review several factors such as: time in business, business credit, personal credit, bank balances, bank deposits, comparable borrowing history, equipment type, dollar amount and term requested. Once this information is received, we key it into our credit matrix and determine the best financing options. This ensures we can get our clients the best financing on the market and customize a program that fits their specific needs. From the time we get an account update form that takes as little as 3-5 minutes to complete we can have financing options that same day or the very next business day. Our commitment to every client is to get them in the best possible program the market has to offer at that time based on the information we are provided. The rates can be as low as prime and as high as credit card rates, as this is determined by the client’s credit file and other main factors mentioned above. Our commitment is to provide every client with the best possible financing options they can qualify for that the market has to offer.

No, you can pay off your finance agreement early and at any time without a prepayment penalty. It is important to understand that there is not an advantage for early payoff other than you will no longer have the payment each month. You are required to make all the payments under the agreement. If you agreed to a 60-month agreement you will be required to make all 60 payments. At the banks discretion they may offer you a 5-10% discount on the remaining stream if you request an early payoff. The bank is under no obligation to offer any discount, and this should not be the basis of your decision. If you feel you may want to pay off early, it is best to choose a shorter term like 24 months or 36 months. In most cases you can receive a significant tax advantage depending on the structure of the financing arrangement and so you would want to check with your tax accountant and in many cases the tax advantage will exceed the interest you are paying, and it can be a wash. It is usually best to choose a structure based on the useful life of the equipment and what most comfortably fits your budget.

Most transactions $250,000.00 and less can be funded in just 3 to 5 business days. For larger transactions above $250,000.00 or for a business with extreme credit challenges it may take more like 7 to 10 business days. Over $1,000,000.00 in funding can take 3 or 4 weeks. Each transaction is different, so we have an initial 3-to-5-minute call at the beginning with the business to better understand each client’s needs. On that call, we can let you know exactly how much time is likely to be needed. Most transactions under $250,000.00 will get approved and funded in less than 5 business days. Often, once we get the online application form that takes 3 to 5 minutes to complete, the equipment quote and bank statements if applicable, we can have the approval same day or very next. Once approved we order a final invoice from the vendor and send out the final documents via DocuSign for approval. Once approved we do a verbal verification with the customer to get permission to fund the vendor. We can typically complete this process in as little as 3 to 5 business days. In some situations, we have application only programs available that can fund up to $350,000.00 and up to $500,000.00 in 3 to 5 business days for those with a perfect credit rating and over 5 years in business.

It depends on the transaction size. On all transactions we have an initial 3-to-5-minute call at the beginning with the business to better understand each client’s needs. On that call, we can let you know exactly how much time is likely to be needed and what information will be required. For most transactions it takes 3 to 5 business days to fund.

• For transactions under $250,000.00: Most transactions under $250,000.00 will get approved and funded in less than 5 business days. Often, once we get the online application form that takes 3 to 5 minutes to complete, the equipment quote, and bank statements if applicable, we can have the approval same day or very next. Once approved we order a final invoice from the vendor and send out the final documents via DocuSign for approval. Once approved we do a verbal verification with the customer to get permission to fund the vendor. We can typically complete this process in as little as 3 to 5 business days. We do offer application only up to 500k with a similar process for a business over 5 years in business with excellent credit history.
• For transactions over $250,000.00: Most transactions above $250,000.00 and for businesses with extreme credit challenges the process can be more like 7 to 10 business days. We get the online application that takes 3 to 5 minutes, 3 months bank statements, an equipment quote, and we most likely will require 1 to 2 years of financials or other pertinent information for the credit approval depending on the transaction. Typically, a site inspection will be required on these types of transactions. We need 2 business days to get the file in order and submit for credit approval and credit approval may take 2 or 3 business days. Once approved it typically takes 2 or 3 business days to complete the final documents usually via DocuSign. The next step is ordering a site inspection that will take 1 to 2 days to order and complete. Most site inspections are done virtually by downloading an online app on your mobile device and taking photos of the equipment. The last step is a verbal acceptance where you authorize the bank to release funds. If everyone cooperates, we can typically get even the most difficult transactions funded in as little as 7 to 10 business days.
• For transactions over $1,000,000.00: Most transactions over $1,000,000.00 may take as much as 3 to 4 weeks or 15 to 20 business days. Same process as on the $250,000.00 shown above only 3 years financials are required, and more extensive information may be required such as contracts, customers list’s, debt schedules, etc. There is about a 5-day process for credit to review the financials and then an interview is conducted. It takes about 3 to 5 business days to get the file in order and submit, then another 3 to 5 business days for underwriting to review and come back with questions. Then about 3 to 5 business days to issue the credit approval. Finally, 3 to 5 business days to complete the final documents and fund. If everyone cooperates and responds to requests timely then it can be funded in as little as 3 to 4 weeks. I have seen them happen in just two weeks however businesses seeking larger dollar amounts over 1 million dollars need to plan on a 3-to-4-week process.

Yes, we can offer up to 100% prefunding to vendors. If vendors have over 2 years in business, a web presence, and no major derogatory credit information reporting on their business credit, then they will most likely qualify for 100%. For those that do not qualify for 100% we can offer 50% or a Purchase Order. We can also structure special prefunding criteria such as 50%, 40%, and 10% or any combination the vendor is requiring.

In most cases the financing will require a first and last payment and a minimal documentation fee. For some larger transactions or with special requests we can offer only a first payment or no payments in advance. For high-risk clients they may need to pay a security deposit or down payment usually about 10%, however for some situations more may be required depending on credit. The standard term and what is most common is paying a first and last payment in advance. It is rare that financing requires any more than a first and last payment.

For better credits we can offer 90 days deferred and 6 months deferred. We can also offer seasonal payments, such as one annual payment each year or semi-annual payments or we can have payments during the busy season and take the slow season off. For instance, 9 months of payment and 3 months off. We can structure the financing so that it fits your seasonal needs or gives you time to get the equipment delivered and in production before your payments kick in.

In most cases no. Most of the transactions we fund are structured as equipment finance agreements and once the final payment is made the equipment is owned free and clear. For some business owners they may request a residual on the back end to lower the monthly payment during the term. If you have requested to have a residual buyout at the end of term, then you would have a payment due. However, most of the time we finance equipment as an equipment finance agreement and no money is owed at the end and you own your equipment free and clear. If there is a buyout due it is at the request of the business owner. There are times when a client with extremely challenged credit that is considered very high risk may need to have the financing structured as a lease to obtain credit approval. In those situations that client is made aware in advance and can determine if the residual on the back end makes sense.

We typically look at personal credit of the majority business owners unless you are applying for a corporation only transaction. We use Experian and we do a soft pull only. So, the initial application process with us would not put an inquiry on your personal credit report. Most of our 20+ programs we offer would not require a hard inquiry, however for those with credit challenges we may need to look at alternate bureaus to get your transaction approved. With some of our very structured programs to issue the hard copy approval and approve they would require a hard inquiry. This is very infrequent and only for those that have a challenged credit history and are requiring a special structured financing solution.

The equipment financing loans and leases we fund are set up exclusively through your business and will report to your business credit report only. We do not offer personal loans, only business loans. It does not report or show up on your personal credit report. If you make your payments timely for 6 months or more, you will be establishing business credit. If we do need to review personal credit, we do a soft credit pull with Experian and it does not report an inquiry, so even if we review your personal credit this will not show up on your personal credit report as a hard inquiry. The business credit reports that it will report to is your PayNet report showing if you are making your payments on time. If your payments are ever late, it will report them as late to your business PayNet report. If your business goes through a hard time and you get slow on your monthly payment a few months, it will not have a negative impact on your personal credit report. Also, because the debt is not reporting on your personal credit like many other loans or credit cards it can help improve both your personal and business credit reports. The business credit report improves by making on time payments each month and the personal credit report improves because this debt does not show up on your personal credit report.

The answer to this question is it depends. We have corporation only for companies that qualify. To qualify for corporation only you should have more than 2 years in business and diversified ownership. If you have done corporation only financing in the past, then you most likely qualify for corporation only financing with us. A personal guaranty would be needed if you are under 2 years in business, the ownership of your company is tightly held, or you simply do not qualify for a corporation only approval. When you provide a personal guaranty, the financing does not report to your personal credit and is set up exclusively through the company. We only finance businesses and the financing we establish helps to build business credit for the company only. It does not reflect on your personal credit and does not report to your personal credit report. That being said, if you did Personally Guaranty and you defaulted on the financing and the debt was never taken care of with the funder it can show up eventually as a charge off on your personal credit report.

It depends. We do not always need bank statements. It is best to get the 3 months bank statements on every transaction. We have 20+ programs and some require banks, and some do not. We get them on everything transaction and then determine the best program. We have some programs that can do up to $250,000.00 and do not require bank statements. Typically, under $50,000.00 we rarely ever need bank statements. The better the credit the less likely we will need bank statements and the lower the credit the more likely we will need bank statements. When we do use bank statements the things that we look at are the following: deposits going in every month, are there any over drafts, has the account been overdrawn, has the business taken down any loans recently, does the business have automatic loan payments coming out each month, what is the 3-month average, and most importantly what is the ending balance each month. If the credit is extremely challenged, we may need as much as 6 months bank statements. Also, if the bank statements are required and the most recent 3 months are low in deposits and the bank balances are low due to the company being seasonal then we can get 6 or 12 months if needed to overcome a seasonal bank account. In Summary, if the credit is good, we typically do not need bank statements, if the amount is under$50,000.00 we typically don’t need bank statements regardless of the credit. It is best to always get the bank statements and then they are available if we need them. We typically request them on every transaction to help streamline the process and ensure we can get everyone in the best possible program they will qualify for.

It is best to have a business checking account established. We have many more options and many of our programs require it. However, we do have programs that will accept a personal bank account. We can get you funded even if you only have a personal bank account you are using to run the business. There are many advantages when it comes to financing equipment for your business or obtaining operating capital when you have an established business bank account.

It depends. We have programs that can go up to $500,000.00 application only for hard assets meaning large pieces of equipment or machinery. Most of our application only programs range from $75,000.00 to $250,000.00. We do have one that will go to $350,000.00 for soft assets and $500,000.00 for hard assets. Our general rule of thumb is that we do not get financials under $250,000.00 and we request them above $250,000.00. It also has to do with credit. If credit is good, it is less likely we will need them. In General, if credit is good, we can do between $250,000.00 and $500,0000.00 application only. Also, we can spread the exposure around if the company has great credit and prefers not to have to provide financials and we can fund multiple schedules. If the credit is not as strong then we may need financials on lower dollar amounts typically starting at $75,000.00 or if the equipment being financed is unique. In Summary, we typically do not need financials under $250,000.00 and we typically do need them above $250,000.000. For businesses that are over 5 years in business and have perfect credit history we can go up to $500,000.00 application only on certain types of equipment.

Yes, we have many great programs for financing brand new startup businesses. A start up is any business with less than 2 years’ time in business. We have programs to get brand new businesses funded and other programs for businesses with over 1 year in business. We can typically do up to $50,000.00 application only for a startup business and we can also do multiple schedules if a startup needs more than $50,000.00 and wants to go application only. To do schedules larger than $50,000.00 we typically need additional financial information like tax returns for a startup business. We have funded startups for as much as $650,000.00 and we can potentially do larger. Most startups looking to go above $100,000.00 will require between 10% to 30% down depending on credit of the business owners. With startups we look more at the personal credit of the owners since the business does not have established credit. We have excellent programs for startup business.

Yes, we can finance businesses and business owners who have had experienced a bankruptcy in the past. If the bankruptcy both personally or business has been discharged or dismissed. A discharge is better than a dismissal however we can do both. If you are currently in bankruptcy and it has not been discharged or dismissed, we will not be able to approve you for financing until it has been discharged or dismissed. It is best if the bankruptcy has been discharged over 2 years ago and you have good pay history and have not been late since the bankruptcy however, we can produce a solution for most people who have experienced bankruptcy if it is in the past and has been discharged or dismissed. If it has been over 2 years and you have good pay history and have not been late since the bankruptcy it will be to your advantage. If you have been late on payments since the bankruptcy or it has been less than 2 years, we will most likely need a security deposit of between 10%-30% depending on the situation.

Yes, we can. It is best if it has been paid off and you can show proof or if you have it on a payment plan and have made half the payments. However, every situation is different. It also depends on the size of the tax lien, how many open tax liens are currently reporting, and how often you have had them in the past. We take everything into consideration and can typically produce a great solution for financing equipment even with a current or past tax lien.

Yes, we can. We would want to see an ITIN number, permanent resident card, or employee authorization card showing you are authorized to work in the US. Homeownership can be helpful but is not required. If you have a permanent resident card or employee authorization card, we can take a look at getting you financing for your business.

Yes, we can, this is considered a recent purchase transaction. We can handle it like a normal transaction and finance 100% of the invoice amount however you would need to show proof that the equipment has been paid for. It is always best if we pay the vendor directly and we have many more programs available if we pay the vendor directly, however we have many that will finance the equipment if you have paid in the last 30 days. We have others that will go out as much as 6 months. In summary it is best if we pay the vendor directly, next best if you have paid in the last 30 days or less. We also have some programs that can go out 60 days, 90 days, and 6 months. The general rule of thumb is that if we can fund it within 30 days of you paying the vendor that is best, in some instances, we can go out as much as 6 months. Beyond 6 months we can sometimes finance them however the most we can finance beyond 6 months is 50% of the value of the asset and it would need to be a hard asset.

In most cases we must pay the vendor directly. There are some exceptions where we can reimburse you if you have recently paid the vendor however it is best if we pay the invoices directly. If you are in a situation where you feel you must pay the vendor directly then we would need to get special approval to reimburse you for a payment already made to the vendor. It is always best that we pay the vendor directly and there is no guarantee we can reimburse you for money paid to the vendor unless approved in advance. If you have already paid then check with your equipment finance specialist on the best solution for getting your equipment financed and the money you paid reimbursed.

Yes, we can include all the soft costs as part of the finance agreement. Typically, softs costs may be limited to 25% or 30% of the total finance amount depending on the equipment and program. We also do 100% operating capital so we can most often propose a viable solution for getting all soft cost financed.

Yes, we can finance 100% software. Often the terms may be restricted to 36 or 48 months. However, we do have situations where we can go longer for software only.

Yes, we can offer 100% operating capital. We typically need to see 3 months business bank statements and then we can get you a cash advance against future deposits. We can typically get you 1.5 times your 3 months deposit average so in the event you deposit on average $100,000.00 per month we can then typically get an approval for $150,000.00 in operating capital funding. Terms typically range from 3 months to 24 months. Most of these are funded at 6-, 9-, 12-, or 15-month terms (18 and 24 months available for stronger credit files over 700 credit and over 5 years in business). Depending on the credit the payments can be daily, weekly, twice monthly, or monthly. With better credit you can get longer terms and monthly payments.

Yes, this is typically called a sale leaseback. However, it does not need to be structured as a lease. We can do it as an equipment finance agreement or loan also. If you own equipment free and clear and want to get some cash out to operate your business, we can finance the equipment and get you 50% of the fair market value on equipment. This means that if you have a hard asset that you own free and clear and it is valued at $100,000.00, we may be able to get you as much as $50,000.00 cash back and then your financing would be for a loan on $50,000.00. The terms are shorter on sales lease backs and typically not more than 24 to 36 months (in some situations we can get approval for longer terms such as 48 or 60 months). They must be hard assets. We can do softer assets like computers etc. if backed by other collateral or real estate. However hard assets can stand on their own and get up to 50% loan to value. These transactions often require financials and bank statements to consider. If the equipment was recently paid for in the past 6 months or less, we may be able to get you 100% of the amount you paid reimbursed, and this would be considered a recent purchase on hard or soft assets.

Yes, we can finance private party sellers. We need to verify proof of ownership of the equipment being sold and we will run a lien search. We require color photos, a used condition report, and a bill of sale. If they owe money to another finance company and do not own the equipment free and clear, we can coordinate to pay off the balance and fund it. We will fund used equipment from private parties based on the current fair market.

Yes, we work with most reputable auction houses. If they cannot get approved as an auction house, we can fund them as a private party sale.

Yes, we can do refinancing of existing equipment loans. On refinancing we often require bank statements and financials to consider. It is important the loans are current and have good pay history. Also, we would need to see a current buyout from the finance company we are going to pay off. You will want to make sure that your existing company you have the financing with will allow you to pay off the loan at a discount and that it makes sense to pay it off early. The times these make the most sense is when you are buying a new piece of equipment and you want to roll your existing loan into the new one to fit your budget and consolidate your loan payment to lower your monthly payment. Also, if you have multiple loans and you want to have one payment, or if you have a larger payment and would like to refinance it to stretch the financing out over a longer term and lower the monthly payment.

Matrix finances a broad range of industries nationwide in the US and Canada. Here is just a few of the many industries we finance, Medical, Construction, Manufacturing, Restaurants, Automotive, Packaging, Tractors, Trucking, Salons, IT Equipment & Software, Fitness, Plus Many More.