How Five West can help even when you already have internal financing
You’re a sales rep. The customer wants to buy, but the internal financing program your company uses just declined the deal. That’s not always the end of it. If the customer has real strengths, the deal can often still be approved, and you keep the sale.
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Why do internal financing programs decline good deals?
Because they’re narrow on purpose. Internal and captive programs are built for clean, established, A-credit borrowers buying standard equipment, and anything outside that profile is an automatic no.
That could be a newer business, a blemish on the owner’s credit, an industry they don’t cover, or a structure they don’t write. It could be a used unit, or a ticket size outside their rules. So a good deal can still get declined there, just because it doesn’t fit the one box they run.
An internal decline tells you the deal doesn’t fit that program’s rules. Other lenders have different ones.
Which deals can still get approved after an internal decline?
The ones that missed the internal program’s rules but fit someone else’s. We work with several programs, each with its own credit box, so a file that misses one can fit another. The deals we pick up after an internal decline tend to look like this:
- Tougher personal credit, when the business is strong enough to carry it.
- Newer businesses that are under the internal program’s time-in-business minimum but have real revenue and cash flow.
- Industries the internal program won’t cover, even when the customer is solid.
- Structures they don’t offer: a lease instead of an equipment finance agreement, a leaseback, longer terms, or seasonal and step payments.
- Ticket sizes, used equipment, or private-party deals outside the internal program’s rules.
None of that is unusual. A one-size program just isn’t built for it.
What does the customer need to get approved?
At least one strength that offsets whatever caused the decline. We can approve deals that fall outside a program’s credit box, but the customer has to have something going for them. A file that’s weak in every area (poor credit, thin cash flow, no operating history, no money down) is usually a real decline everywhere. If that’s your deal, we’ll tell you fast.
These are the strengths that can make up for a weak spot:
- Healthy cash flow. The business clearly makes enough to cover the new payment. This is the big one, and it’s often enough on its own.
- A solid payment history. They pay their existing loans, leases, and lines on time.
- Strong business financials. Real revenue, profitability, and a balance sheet that can offset a weak personal credit score.
- Time in business and industry experience.
- Money down. A meaningful down payment or trade-in lowers the risk, and it can get a deal approved that wouldn’t work with zero down.
- A good explanation for the blemish. A one-time event with an explanation looks very different from a pattern of missed payments.
One strong point usually outweighs one blemish, so tell us what the customer does well.
Is it OK to take a declined deal outside your internal program?
For most reps, yes. Internal financing is usually where a deal goes first, and once it declines one, taking that deal somewhere else is typically how you save the sale. That’s what you and your customer want, and your company wants it too, since it would rather sell the equipment than lose the sale over financing.
Follow your company’s process. Just don’t assume an internal decline means the deal (and your commission) is gone.
How do you send us a declined deal?
- Send the file. Start at our application page. Include the equipment and the amount, roughly how long the business has been operating, ballpark credit, and the strengths above. We run a soft pull first, so it won’t ding the customer’s credit again, and we’ll give you a quick read on the deal. Most submissions get a first response within 1 to 2 business hours.
- Set up a referral relationship. If your internal program declines deals regularly, let’s set up a simple partnership so you always have somewhere to send them. There’s no cost and no volume commitment, and you keep the sale and the commission.
Or email us directly at support@fivewestfinancial.com. You’ll have one point of contact and a fast, honest answer either way.
Send us the deal internal won't do
We’re a backup option for reps whose internal financing just said no. We work with several programs, each with its own credit box, so a customer with real strengths who fell outside your internal program can often still get funded, and you keep the sale. We start with a soft-pull prequalification, so finding out doesn’t cost the customer anything.
- After a decline
- We can often approve deals your internal program won’t
- Program breadth
- Several programs, each with its own credit box
- Soft-pull prequal
- A read with no hit to the customer's credit
- What helps
- Cash flow, payment history, and financials that offset the weakness
- One point of contact
- A quick, honest answer either way
- Cost to you
- None, and no volume commitment
- Reach us
- support@fivewestfinancial.com
General program parameters, not an offer or commitment. A prequalification is an indication, not a final approval. All financing is subject to credit approval and underwriting, and not every deal can be approved.
What should a rep do after an internal decline?
Send us the deal before you give up on the sale. A decline from your company’s program only means the deal didn’t fit that one program. If your customer wants to buy and has real strengths, there’s a good chance it’s still doable somewhere else.
If it can’t be done, you’ve lost nothing by asking. If it can, you keep a sale you were about to write off.
Frequently asked questions
I’m an equipment sales rep and my internal financing declined a deal the customer can afford. What are my options?
Take the deal outside your internal program. A decline from one program means the file didn’t fit that program’s credit box, and it may still be financeable elsewhere. If the customer has real strengths, like healthy cash flow, a solid payment history, or strong business financials, a partner with several programs can often approve a deal your internal or captive program won’t, and you keep the sale. A soft-pull prequalification doesn’t affect the customer’s credit.
Can equipment financing be approved after an internal or captive decline?
Often, yes. Internal and captive programs run a single, narrow credit box built for established A-credit borrowers, so they decline anything outside it, including good deals. A lender with several programs has several credit boxes to try. Approval still depends on the customer having strengths that offset whatever caused the decline, so it’s never guaranteed.
The customer has healthy cash flow but weak personal credit. Can the deal still get done?
Yes, in a lot of cases. Weak personal credit offset by healthy cash flow and a good payment history is one of the most common profiles we approve after a captive decline. A strength in one area can make up for a weakness in another. What doesn’t work is a file that’s weak in every area with nothing to offset it.
My company wants me to use internal financing. Can I still take a declined deal elsewhere?
In most cases, yes. Internal financing is where a deal usually goes first, but once that program has declined it, it’s generally fair to take the deal elsewhere so the customer can still buy your equipment. Follow your own company’s process. Just keep in mind that this is how you save the sale and the commission instead of losing both.
What does a customer need to get approved outside internal financing?
At least one real strength that offsets the reason for the decline. The strongest ones are healthy cash flow that clearly covers the payment, a solid history of paying existing loans and leases on time, and strong business financials. Time in business, industry experience, a meaningful down payment, and a good explanation for a one-time blemish all help too.
How do I refer a declined deal to Five West?
Send the file through the application page with the equipment and amount, time in business, ballpark credit, and the customer’s strengths. We start with a soft-pull prequalification and give you a quick read on the deal. Most submissions get a first response within 1 to 2 business hours. Or email support@fivewestfinancial.com to set up a simple referral relationship. There’s no cost and no volume commitment.
Don't lose the sale to a decline.
Send us the deal your internal financing won’t do. If the customer has real strengths, we can often approve it, and you keep the commission. We start with a soft pull, and there’s no cost to you.
Related guides
More on what to do with a declined deal.
On the siteVendor programsEquipment financeFinancing glossary
Or browse every guide in the resource library.
This article is general information about commercial equipment financing and vendor referral programs, and is not a commitment to finance, nor tax or legal advice. A prequalification is an indication only, not a final approval, and not every deal can be approved. All financing is subject to credit approval and underwriting, and approval and terms depend on the complete business and credit profile. Follow your own employer's policies regarding outside financing.