Heavy Equipment Financing Simplified

Paradigm Equipment Finance provides up-front, easy-to-understand guidance for businesses seeking equipment financing. We serve businesses throughout the United States as an alternative lender, providing construction equipment financing to subprime borrowers who have solid business fundamentals and a comprehensive understanding of the assets they’re pursuing.

Below is a review of our equipment financing guidelines. Please keep in mind that Paradigm Equipment Finance is a collateral-based lender, and that all decisions are based on our evaluation of the type and value of the equipment being leased.

Deal And Credit Analysis

Before moving forward with any heavy equipment finance, we require that our clients provide the following information for credit analysis:

Application for lease

Authorization to pull credit

Minimum three months of bank statements

Equipment list of pledged collateral

Invoice or proposal for equipment to be purchased

Corporate and personal financial statements and tax returns for deals over $150,000

Business Hours

Monday

Wednesday

Thursday

Friday

Saturday

Sunday

Tuesday

7 AM - 4 PM

7 AM - 4 PM

7 AM - 4 PM

7 AM - 4 PM

7 AM - 4 PM

Closed

Closed

124 South Fairfield Road

Layton, UT 84041

(801) 682-8648

Location

Paradigm Equipment Finance

Paradigm Equipment Finance

Credit Guidelines

As an asset-based lender, we strive to accommodate lessees regardless of traditional creditworthiness metrics. Below is a matrix of guidelines to be used in determining pricing and collateral requirements:

*Based on monthly lease payment. Approval will be subject to an analysis of a minimum of three monthly bank statements.

Tier

I

II

III

IV

Grade

A

B

C

D

Credit

Deposit Requirement/Extra Equipment

*Average Ending Balance

1:1:1

1:2:1

1:5:1

2:1

20% Cash / 1.5:1

33% Cash / 1.75:1

50% Cash / 2:1

15x Pmt

20x Pmt

15x Pmt

20x Pmt

6x Pmt

4x Pmt

4x Pmt

2x Pmt

Credit

Ratio

10% Cash / 1.25:1

*Average Monthly Deposit Required

700+

660-699

620-659

580-619

Tier

IV

Grade

D

Credit

580-619

Avg Ending Balance

Deposit Req/Extra Equip

2:1

50% Cash/2:1

12x Pmt

2x Pmt

Avg Monthly Deposit

Cover Ratio

Tier

I

Grade

A

Credit

700+

Cover Ratio

Deposit Req/Extra Equip

1.1:1

10% Cash/1.25:1

20x Pmt

6x Pmt

Avg Monthly Deposit

Avg Ending Balance

Tier

II

Grade

B

Credit

660-699

Cover Ratio

Deposit Req/Extra Equip

1.2:1

20% Cash/1.50:1

15x Pmt

4x Pmt

Avg Monthly Deposit

Avg Ending Balance

Tier

III

Grade

C

Credit

620-659

Cover Ratio

Deposit Req/Extra Equip

1.5:1

33% Cash/1.75:1

15x Pmt

4x Pmt

Avg Monthly Deposit

Avg Ending Balance

Deposit and collateral requirements are subject to minimum coverage ratios. More conservative requirements are taken when using equipment in place of cash deposits. Set pricing is also subject to meeting all minimum Tier requirements. For example, if a lessee has a 700+ credit score but average monthly deposits of 16x the new monthly lease payment, the lessee is scored as Tier II instead of Tier I.

Secure The Assets Your Business Needs

Looking for an asset-based lender who can help your business transcend traditional financing options to get the equipment you need? Let Paradigm Equipment Finance help you the way we’ve helped countless others. Contact us below for more information about our lending process or fill out a quick application here!

Restricted

Restaurant

Technology/IT

Leasehold Improvements

Anything Related To CBD

Equipment Valued Under $10,000

Preferred

Medical

Heavy Construction/Yellow Iron

Titled Trucks & Trailers

Heavy Industrial Equipment

Mining (Surface Equipment)

Manufacturing (Min. Value $10,000+)

Agriculture

Inspection And Valuation

After a proposal receives a conditional approval and receipt of the initial deposit required, Paradigm Equipment Finance will move forward. As part of our due diligence, we complete a thorough evaluation of collateral and a site inspection of the business.

Completed reports include pictures, notes and values of the collateral item(s), as well as pertinent information regarding industry, condition and resale values. The scope of an inspection will vary depending on the nature of the assets and collateral involved.

Equipment And Industries

Each individual piece of equipment being leased requires a valuation in excess of $10,000. Paradigm Equipment Finance retains the rights to make an exception based on a blanket UCC-1 lien on company’s assets. The following is a list of preferred and restricted equipment and industries we deal in.

Paradigm Equipment Finance

124 South Fairfield Road

Layton, UT 84041

(801) 682-8648

Location

Paradigm Equipment Finance

Business Hours

Monday

Wednesday

Thursday

Friday

Saturday

Sunday

Tuesday

7 PM - 4 PM

7 PM - 4 PM

7 PM - 4 PM

7 PM - 4 PM

7 PM - 4 PM

Closed

Closed

Contact Us

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