That is usually the first question asked when financing something; be it your home, car, furniture or equipment and machinery for your company. How much is it going to cost me in interest, out of my hard-earned dollars, to get what I want or need?

Let’s focus on equipment financing. Brokers and lenders often advertise pay sheets or rates, which are extremely low, lower than the rate at which primary lenders even lend money. Why do they do that? Because by the time you provide a complete financial package, you’ve already done a considerable amount of work, it has taken time, and your credit has been hit at least once. Now the lender notifies you that you don’t qualify for the “preferred” quoted rate, but you can still approve it at a higher rate, of course. At this point, many entrepreneurs just agree instead of going through the whole process again and can’t really make a decision. If you have been shopping for a car, then you know the exercise.

How to avoid this situation? Have your finances organized, scanned, and in PDF format so you don’t feel overwhelmed when asked to provide them; The more information the better. If you plan to use real estate or other equipment as collateral, have the appraised value and old bills ready for those assets. Most importantly, you print your personal or business credit score (FICO and D&B scores) and offer that report as a basis for preliminary approval, that way you will prevent everyone from taking your credit, which quickly raises a red flag. Once your lease payment is within your budget, you can have the lender run a current credit check for final approval. If you’ve had links, defaults, or any credit issues, have them corrected and be ready to show proof of that correction.

BEST TIP: Write your own summary of your financing request; Include the why, what, where, when, and who of the upgrade or project – you know what you’re trying to accomplish, so you’re in the best position to write an accurate review. Tell your story and also include explanations of the negative aspects so that you do not repeat the same story verbally. With a well-written summary, a copy of your credit report, and a well-organized financial package, you’ll be ready to submit your financing request and get a quick and often positive response.