Gamma Funding Corporation provides financing to qualified applicants throughout the United States. The principals and staff of GAMMA represent many years of experience in the equipment leasing the banking industry.
This page contains an overview of our policies. Credit is not a finite art and each application must be treated on an individual basis. Some of the policies are more flexible than others. In the analysis of each credit application, the credit analyst must make his/her decision within the broad guidelines set forth by the company.
This page is designed as a tool for understanding Gamma and its policies. If you need clarification about any points within this content do not hesitate to contact our office.
Please be advised that Gamma segregates its applications for credit into two categories:
(A) Transactions from $100,000 credit decisions based only on information from our application.
(B) Transactions from $100 K to up, which will require tax and financial statements information as well as the complete application.
Gamma DOES NOT require financial statements on transactions up to $100,000. We do recommend, however, for transactions for business or less than 3 years between $50,000. and $100,000. that a statement is included to expedite the approval process. (This should NOT apply to companies in business 5 years or more.) Therefore the most important aspect of the submission process is a totally completed credit application. Missing pieces of credit information will only delay the decision-making process.
Listed below are the basic components of the decision making process. Your understanding of these will assist you in any Pre-screening you may elect to do yourself.
Time in business, usually two years minimum.
Satisfactory bank and trade references, lenders, especially on transactions without financial statements, look for lessees to have trade & bank balances in excess of the finance request.
Satisfactory personal credit on guaranteeing principals.
Stability of industry related conditions.
Essential use/nature of the equipment.
Financial statements (when needed) reflecting profitable results and balance conditions.
REQUIRED CREDIT INFORMATION
For transactions of $100,000 and less
Personal guarantees are usually required for all sole proprietors, partnership and closely held corporations.
For transactions over $100K:
(A) Proprietorships, closely held & professional corps.
(1) Completed application
(2) Personal financial statement
(3) Personal tax return, most current with schedule C
(4) Last 2 years accountant prepared business financial statements.
(B) Large or public corporations.
(1) Completed application
(2) Last 2 years accountant prepared financial statements.
(Don’t forget to include the CPAs disclaimer letter)
(3) Interim statement if year end is 6 months old.
Transaction summaries, in appropriate circumstances, are very helpful and are always appreciated. Such summaries should describe the applicant, provide background information on the company & principles and explain why and for what reason equipment is being acquired.
631 203 3000
DOCUMENTATION AND FUNDING.
The following is an overview of required lease and funding instructions.
All lease transactions require the following original documents:
(A) Lease Agreement
(B) Delivery and Acceptance
(C) Advance Rentals Check
(D) Vendor's Invoice
(Sold to Gamma Delivered to Lessee)
(E) Broker's Commission Invoice
(F) UCC 1's (one for state and one for the county)
Listed below are frequently used additional forms:
(A) Corporate Guaranty
(1) A cross-Corporate Guaranty is generally used when a parent company is guaranteeing the performance of a subsidiary.
(2) The corporate Guaranty must have the name of the lessee as it appears on the top of the form. It must be signed by a corporate officer of the company guaranteeing the lease, with their title.
(B) UCC 1
When filling out the UCC-1:
(1) Debtor is the lessee.
(2) Secured party is Gamma Funding Corp.
(3) Lessee (debtor) signs where indicated.
(4) In cases where the billing address/headquarters of the lessee is different from the location of the equipment, a UCC-1 will be required for both addresses.
(5) Two UCC-1s are required in Maryland, Massachusetts, Mississippi, Missouri, New Hampshire, New York, North Carolina, Ohio, Vermont, Pennsylvania, Virginia and Wyoming.
(6) UCC-1s filed for sole proprietorships must show the individuals name as lessee.
(C) Insurance Coverage
Proof of insurance is required on all transactions over $10,000. Gamma or its bank must be named as loss-payee as it pertains to physical damage and additionally insured/co-insured for liability coverage.
(E) Individual/Personal Guaranty
There may be instances where we will require more than one individual guaranty. In those cases, the second guaranty should be executed on a separate Individual Guaranty form. The lessee's name, as it appears on the lease, is at the top of the form. The guarantor signs (with no title)
Please call us with any questions.
(1) Credit approvals are valid for 60 days. If documents are received after 60 days from the date of the approval, credit must be re-verified. If there has been a rate change, the rate at re-approval will apply.
(2) UCC-1s are required on all transactions.
(3)Proof of insurance ( hard copy insurance binder).
with carrier or broker name & phone #, is required on all transactions.
(4) Gamma DOES NOT lease in Louisiana or Arkansas.
(6) Total lease amount should not include more than 40% for soft costs such as software, freight, and installation. Maintenance and service are generally not part of the lease.
(8) A one time administrative and documentation fee of $224.32 will be collected from your client.
(9) Please be advised that Gamma will call
end-user to verify delivery and terms.