The first factor is our subjective opinion regarding the liquidation value of the equipment to be leased. "Soft" assets, such as phone systems, POS systems, computers in general, etc. have limited liquidation value if repossessed. For this reason, we require a stronger credit file for "soft" equipment.

Second, as mentioned previously, the lessee's available cash or liquid resources are critically assessed particularly for the start-up business. We require a bank rating which is an obvious source of information on cash. However, ratings are sometimes difficult to get from a bank and it may not be as helpful as having a copy of the past three months of the business' account. Although not requested, information on the owners' personal checking, savings or broker accounts can very favorably influence our decision.

For those applicants who are just opening their business, copies of statements of the owner(s)' personal bank or broker accounts are great substitutes for the business account statements.

In general, we require that the information provided substantiates a low 4 depository balance with no NSF's or Overdrafts for requests under $15,000 and a moderate 4 or higher for larger transactions.

Third, we attempt to verify that the business is what it represents on its application as well as confirm it's historical credit performance. We use a number of different business credit reporting agencies and Internet databases to assist in this portion of the analysis. Many of our brokers are now using the Internet at the pre-submittal stage to screen out those applicants who might be wasting everyone's time or more importantly to enhance the application package they submit to Pawnee. Good supporting trade information is very helpful in facilitating the approval of your applicant.