It’s surprising how many finance companies do not go over credit pull requirements with clients upfront, especially when it comes to the type of credit pull being done. It is also surprising that most clients do not ask about credit inquires prior to filling out a finance application.
Many equipment financing companies use a soft credit inquiry only, but there are some that will perform a hard inquiry upfront or prior to finalizing the deal.
A soft inquiry should not affect your credit score. A hard inquiry is recorded on your credit report and can adversely affect your credit score, particularly if you have multiple hard inquiries within a relatively short period. *Hard credit inquiries can also potentially trigger unwanted credit or finance-offer marketing directed to you.*
Bottom Line: Know whether you’re authorizing a hard or soft credit inquiry before allowing a finance company to pull your credit. Avoid a hard credit inquiry if possible.
Here at EFS, we take pride in being transparent & informative with our business owner clients so they can make the best decision for their business. We go over: the credit pull requirements, expected timeline for finalizing the financing, lender fees, agreement terms, & how the early payoff discount is structured (spoiler alert: not every finance agreement offers an early payoff discount).
If you ever need equipment financing for your business and you want to work with a company that has your best interests at heart, feel free to contact us through our website www.efsequip.com, or call us at (512) 888-5721 to speak with a senior finance specialist. We are here to serve.