Leasing Technologies International

5. When considering the use of the improvements made for enhancing its operations, using these topics: trying to get an objective and fair evaluation of your credit profile and risks of transactions of an individual with knowledge of loan, make a stock of the credit enhancement is possible that the company can provide, assess the cost of the improvements possible to decide whether the use of them will be worth it, time and opportunities for a second chance to submit your transaction with the credit provider, present for the first time without credit enhancement or with I think minimum increase acceptable to the credit enhancement available to your company, decide what will be effective and the degree of improvement necessary to achieve its objectives. 6. Help to develop a strategy for improvement of credit in the planning stage of the transaction. Start by understanding the credit strengths and weaknesses of the transaction. Decide which enhancements available to your company will help to strengthen the risk profile of the operation. Try to assess the sensitivity of the credit provider to the different types and degrees of credit enhancement. Later, if the lender rejects your proposed transaction or unacceptable conditions, ask the vendor to suggest improvements that will make a difference in the decision.

You may be able to continue to negotiate, once you have this information. 7. All credit enhancements have a cost. In many cases the cost is the opportunity cost of not having the credit enhancement available for future use. Before offering or providing credit enhancement, do a thorough cost-benefit analysis to ensure that the potential benefit justifies the cost to your business. Although not always possible to improve a credit to the satisfaction of credit providers, you must understand the value of credit enhancements and know when they can be useful. Carefully considering potential credit enhancements, you can often improve the pricing and conditions of the credit operations of your business.

If your company has a weak credit profile, the use of a credit enhancement can make the difference between obtaining financing or being rejected. George Parker is an Executive Director and Vice President of Leasing Technologies International, Inc. (LTI), responsible for LTI’s marketing and financing efforts. David Zaslav understood the implications. A co-founder of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles relating to the financing of equipment. Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and leasing programs for new suppliers the Growth and downstream companies, backed by venture capital. More information about LTI is available at:

Credit Cards

Q: I'm opening a gift shop and want to be able to accept credit cards. I talked to the branch manager of my bank, but do not seem to know much about how it all worked. a l said I would need something called a "merchant account" and something more like "a credit card processor." Beyond that it seemed as lost as me. I'm thinking of going to another bank. Can you explain how it works? – Mary Ann G.

A: Mary Ann, I'm going to give your bank the benefit of the doubt and say that a lack of knowledge about the details of credit card processing is not necessarily a reflection of the competence of the banker. I have found in recent years that most bankers, no matter the experience or knowledge about the banking business that my be, do not know much about how credit card processing and acceptance really works. That's because the task of accepting and verifying credit card purchases is handled by firms services of others and that the process of deposit (or settle) the funds in a bank merchant account. The decision to accept credit cards is a wise for any retailer. I agree with financial guru Dave Ramsey's teachings regarding the use and abuse of credit cards. Many people dig deep holes with credit cards that are difficult to exit. But from a practical point of view, any retail business that accepts credit cards are leaving money on the table.