A few months back, I was contacted by a Construction company in MN who was looking to finance an excavator that they found through an affiliate of our company. The owner had gone to his Credit Union to get the financing since he had been dealing with them for the better part of the last 10 years for his business financing.
To his disappointment his company was turned down even though he had existing financing with the Credit Union and not missed a payment in 5 years.
Now understand, this Equipment Loan was not an optional purchase that he wanted to do, it was a necessity as the equipment that was being replaced was not repairable and without the new excavator, he was forced to either turn away work or rent one for daily use.
The reason the Credit Union wave as to why they could not do the Equipment Financing for him was because of program changes. The Credit Union even tried to get him personal financing for the equipment, unsuccessfully though.
Fortunately, the Vendor of the Equipment knew just what to do. He had directed him back to the Internet Site that he had found the Vendor at and instructed him to fill in a Request for Quote for Equipment Financing.
Once the business owner did get in touch with a Commercial Finance Broker, the financing was all set up with a Specialty Lender within a week of receiving the complete application.
The largest reason for this happens is because Banks and Credit Unions are general Financial Institutions, not Specialist Lenders. There is a big difference between getting a bank account or personal car loan when you have great credit and worked at the same well paying job for the last 5 years and being a Company looking for Financing on Specialty Equipment.
Even if you do get an approval at your bank, it may not be a bad idea to speak to a Commercial Finance Broker anyways as there are many special Lenders that may have a better Finance product for you. At the worst, you can compare approvals to see which works best for your company.