Wednesday, February 25, 2009

What is the Process to Apply For Vendor Financing?



The application may be done at home and dropped off with a representative all depend on who you are working with. You may be filling it out and then submitting it online. If you are attending a seminar then you may be filling it out after the program is offer for someone to review. Regardless, make sure that all of the information is filled out correctly. You don’t want to omit information to look better as most of what you submit can be verified and will be. You also don’t want to leave areas blank as that can delay processing. If you aren’t sure what to fill out then make sure you ask before you take a guess.

Various types of documentations are required along with your application. It is important to provide all of it. Always offer copies though rather than your original documents. You may have to sign a release too for a credit check to be done on yourself. If a spouse is applying as well then both of you will have to sign the application as well as any required release forms.

Attach a typed note with your application if there is additional information you would like them to consider. It could be about your business goals, your credit situation, or anything else that you feel should make an impact on their decision to approve you for a vendor financing program. While they are more lenient than banks and other lending institutions, they still have some guidelines to follow.

You will need to supply photo ID’s, proof of residence, bank statements for a set period for time, possibly tax returns for the past two years, and financial statements for your business if it isn’t brand new. Gather this information in advance so that the process isn’t held up while you look for it.

Allow the company some time to examine your application as well. They should get into contact with you right away if they need additional clarification or documentation. Make sure you provide that information right away so they can continue the evaluation process. When you are considering the program, make sure you ask how much time it will take from the date you provide everything to when it is completed. That way you will have a decent time frame to work with.

There are some vendor finance programs will get a decision for you within 24 hours. Most of them require at least three or five working days. In some instances it can be as much as 14 days. It seems that the more funding you are requesting the longer it can take to get the application processed. Keep in mind that the company has to do all they can to carefully weigh helping you out with the risk of not getting their money. You can’t expect them to take such a decision lightly.

Now that you have a basic idea of what to expect from the application process for vendor financing, you won’t feel like you are clueless. Remember that you need to do a great deal of looking around and comparing offers before you get to the point where you are ready to commit to submitting an application though.

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