Expert Don Coolbaugh of Advantage Funding starts a weekly series of questions and answers for chauffeured transportation operators on all matters related to financing and leasing fleet vehicles.
QUESTION: How long does it take for approval from the time an application is submitted for financing or leasing until final approval is made? After final approval, how long before I can take delivery of the equipment?
ANSWER: The process for approval and the length of time it takes varies greatly among companies. We at Advantage Funding have established internal mechanisms to speed that process and we can turn around most complete transactions within 24 hours and have funding to a customer within 48. If the request exceeds $350,000, the process is slightly longer. With us, requests under $250,000 will not require financials. The average bank will take about four to five days up to seven days for approval, and will usually want financials on most submissions.
Delivery of equipment is predicated on funding. Funding after final approval is contingent upon completing a set of contracts based on the approval and returning the complete package back to your lender. The complete package would consist of the contract set, a bill of sale, a copy of the title from the dealer, a copy of the insurance binder displaying total coverages, insured names, and any additional stipulations that are requested by the lender, such as a copy of the driver's license and proof of residence. Our funding generally is 24 to 48 hours after submission of complete package.
Don't hesitate to contact your lending representative if you have any questions on the best way to submit and fund a package.
Source: Don Coolbaugh, vice president of sales, Advantage Funding Inc.
E-mail finance and leasing questions to: Martin@LCTmag.com