Question 1

How important is good credit to qualify for financing?

Accepted Answer

Credit matters, but it's one factor among many. Lenders also look at time in business, homeownership, the type of business you run, how many guarantors are on the loan, and your history with similar-sized loans. Strong credit gets you the best rates. Weaker credit doesn't automatically disqualify you. There are lenders that specialize in B, C, and D credit tiers, and we work with them when it makes sense for your situation.

Question 2

Does a bankruptcy disqualify me?

Accepted Answer

If a bankruptcy hasn't been discharged, no lender will fund a new loan. That part is universal. Once it's discharged, the picture changes. Different lenders set different waiting periods, usually two to five years after discharge. The right lender depends on the type of bankruptcy, what's happened with your business since, and the size of the deal. Worth a phone call to walk through.

Question 3

What is a soft credit pull?

Accepted Answer

Every lender eventually runs a credit check on borrowers, but a soft pull doesn't go through the credit bureaus the way a hard inquiry does. It looks at public data and doesn't ding your score. Note: We don't use soft credit pulls.

Question 4

What counts as a start-up business?

Accepted Answer

Most lenders consider a business a start-up if it's been operating for two years or less. A few want three. Start-up financing is harder to secure, but not out of reach. Programs exist for newer businesses, especially when the owner has industry experience, decent personal credit, or a down payment in hand. The terms typically aren't as favorable as those for a five-year-old business, but they get equipment under you so you can build.

Question 5

What is an EFA?

Accepted Answer

An Equipment Finance Agreement (EFA) is one of the most common ways small businesses fund equipment purchases. It looks and feels like a lease, but it's technically not one. With an EFA, you own the equipment from day one, and the lender secures their position with a UCC filing or a title lien. Because you own it, the equipment shows up on your balance sheet, and you handle depreciation on your end. For most operators, an EFA is a cleaner fit than a lease.

Question 6

What is a collateral loan?

Accepted Answer

A collateral loan uses other lien-free equipment you already own as security for new financing. It's a common tool when your credit profile or time in business makes a lender hesitant on the deal alone. Lenders typically want a two-to-one ratio. To borrow $30,000 against collateral, you'd put up roughly $60,000 in lien-free equipment. The exact ratio depends on the lender and the equipment, but two-to-one is a reasonable starting expectation.

Question 7

Can I pay off my loan early?

Accepted Answer

Yes. Every commercial loan, EFA, or lease can be paid off ahead of schedule. That said, commercial loans usually aren't simple-interest the way a personal car loan is. The remaining balance is calculated on a pre-set amortization, so paying off early may not save you as much interest as you'd expect. Ask for a payoff quote before you assume the savings, and we'll walk through the math with you.

Question 8

Who leases equipment?

Accepted Answer

Roughly eight out of ten U.S. businesses use lease financing at some point. It's not a niche tool, it's the standard way most companies acquire equipment they don't want to tie up working capital buying outright. That includes everything from a one-truck owner-operator to a national fleet. Lease versus buy comes down to your tax picture, cash flow, and how long you plan to keep the equipment.

Question 9

What are the advantages of leasing?

Accepted Answer

Leasing tends to fit when you want to keep working capital free, preserve credit lines, or trade up before the equipment hits the end of its useful life. The common advantages: - Conserve capital for operations, payroll, and growth - Preserve existing credit lines for other uses - Off-balance-sheet treatment under some structures (talk to your CPA) - Avoid obsolescence with shorter terms and a planned upgrade path - Specific tax treatments your CPA can model for your situation - Flexible structures that can match seasonal cash flow If you'd rather own outright from day one, an EFA or equipment loan often makes more sense. We'll talk through both based on your numbers.

Question 10

How does a broker get paid?

Accepted Answer

We never charge you, the customer, anything. No application fees, no consultation fees, no shipping costs. Our consultation is free and you're never under obligation. Once a loan is placed and you have your equipment, the lender pays us a referral fee on their schedule. Our incentive is to find you a deal you actually close on, with terms you can live with. That's the only way we get paid.

Question 11

How can Joslen Commercial Funding help me?

Accepted Answer

Three things make us useful to a small business: 1. We know which lender to send your deal to. Thirty-five years in financing means a working rolodex of national lenders and a real sense of who funds what. 2. We protect your credit during the process. Shopping a deal yourself usually means multiple hard pulls. We take your file to the lender most likely to approve it instead. 3. We translate. We'll walk you through EFAs, leases, collateral structures, and tax implications in plain language until the picture is clear. If your situation is straightforward, you'll get a fast yes. If it's complicated, you'll get an honest read on what's possible.

Question 12

What services does JCF offer?

Accepted Answer

We place financing for: - Equipment loans - Equipment Finance Agreements (EFAs) - Equipment leases (with various end-of-term options) - Sale-leaseback arrangements on owned equipment - Refinancing of existing equipment debt - Asset-based revolving lines of credit - Working capital loans - Franchise financing - Challenged credit programs for B, C, and D credit tiers If you don't see your situation on this list, call. We'll either help directly or point you somewhere honest.

Question 13

What equipment specialties does JCF focus on?

Accepted Answer

The bulk of our deals fall into a few categories where we have the strongest lender relationships: - Heavy equipment and yellow iron (excavators, dozers, loaders, skid-steers) - Trucking and trailers (over-the-road, dump trucks, day cabs, reefers) - Logging equipment Outside those, we regularly place financing for construction, agricultural, automotive repair, industrial, restaurant, medical, dental, printing, metalworking, telecommunications, office, and dry cleaning equipment. If it's commercial and you can put a price on it, there's usually a way to fund it.

Question 14

What is Section 179 and will it save me money?

Accepted Answer

Section 179 lets a small business fully deduct the cost of qualifying equipment in the year it's placed in service, instead of depreciating it over time. For a working business, that often turns a year-end equipment purchase into a meaningful tax deduction. The cap changes from year to year, so check the current limit before you build a plan around it. Your CPA fills out IRS Form 4562 to claim it. This is general information, not tax advice. Talk to your CPA about your specific situation.

Frequently asked questions.

Getting qualified

How financing works

Working with JCF

Equipment

Taxes

Still have questions?

Text us at (503) 703-5045.