General information

  • We want your A – B credits.
  • Our transaction sizes range from $3,000-$50,000 and our loan terms range from 12-60 months.
  • We will review your documents for approval – including EFA and Lease Documents.
  • We will also fund Municipal transactions for city, county and state entities. We do not do Federal financing.
  • We bill and collect for all transactions.

Credit criteria

Application packets should include:

  • Complete credit application signed by the owner(s)/guarantor(s)
  • Home and cell phone numbers and email addresses for each guarantor
  • Transaction write-up
  • CBR on owner(s)/guarantor(s)
  • Detailed vendor invoice/quote/sales order
  • Three (3) most recent months of complete bank statements
  • We may also pull additional business and/or personal credit reports.

Equipment and location criteria

  • We will consider a wide range of equipment and fund in all 50 states.
  • We will consider partial prefunding with prior vendor qualification and approval.
  • We will do new and used titled vehicles, with all title work handled by a dealer or a third party title service.
  • For used equipment, we require an independent condition report or comps.
  • Company policy disallows working with foreign vendors.

Equipment/Industry Restrictions:

Restricted equipment types include: ATMs, Gambling Machines, HVAC, POS Systems, Web Sites, Metal Buildings, Signage, Dry Cleaners, Amusement and Recreation, Gas Pumps and Dispensers, and Furniture.

Restricted industries include: Agriculture, Restaurants, Chiropractors, Lumber/Logging, Owner/Operator Trucking, Livery, Auto Repair and Body Shops, Beauty and Tanning, and Home based businesses.

Documentation and funding requirements

  • Broker document packets must be approved prior to initial submission.
  • Venue or assignment of venue should read State of Illinois, Cook County.

In addition to standard documentation, we will need:

  • Copies of driver’s Licenses for all contract signors/guarantors in lieu of notarization of signatures
  • Insurance Certificates with Padco Financial Services, Inc. as Certificate Holder and Loss Payee (as well as Additional Insured for liability for lease contracts)
  • Broker Invoice and Assignment Form to Padco Financial Services, Inc.
  • Copy of commitment/cover letter or invoice to customer outlining the terms and advance payments
  • Copy of the Advance Payment check and/or Security Deposit
  • Notice of Assignment Letter to Lessee to be provided on your letterhead and signed by the customer in acknowledgement
  • Site inspections may be required – you will be notified upon approval.
  • Faxed or emailed copies of executed documents will speed up the funding process, but original documents are required prior to funding.
  • We will do verbal verifications with each guarantor prior to funding.

Collections and defaults

  • We make every attempt to process all collection issues internally, but any assistance you can provide is always appreciated.
  • We provide monthly status reports to show how your portfolio is performing.
  • In the event of a default and repossession situation, we will likely expect your involvement and assistance.

Benefits to funding with Padco Financial Services

  • Personalized service
  • Flexible rates
  • Quick turn-around

We encourage you to contact us with any questions!

  • We take applications only to $50,000.00.
  • We review all transactions individually, meaning we are flexible and not tied to a rigid scoring model.
  • We offer competitive pricing based on our special profit sharing model.
  • Ideally we look for a 700 and above FICO Score and a Paydex Score of 65 and above, but we don’t have hard minimums. We try to view the big picture, when evaluating credit-worthiness of potential customers. 
  • We do not accept sale-lease-back transactions, and prefer not to do private party sales.
  • Brokers must have a minimum of three (3) years in business under current ownership.
  • We look for Personal Guarantees from principals and their spouses on every transaction, with exceptions generally reserved for deals with qualifying financials and histories.
  • Likewise we look for ACH on all transactions. We have our own in-house form that we will provide to you to add to your doc packages.
  • On approvals, we often request that transactions be subdivided into multiple schedules to keep contract sizes smaller for the sake of our investors.
  • We email out an approval or decline notice within 24 hours. All approvals are good for 90 days unless adverse information is received. Credit extensions are available upon request, but updated information may be required.