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Considering an operating lease?
Lease machinery, equipment and fit-outs from ₹25 lakh to ₹100 crore.
Check eligibilityWhat a credit assessment covers
In India a lender or lessor builds its view from documents you provide and data you consent to share. Most reviews look at four things.
1
Financial statements: usually two to three years of audited accounts, with provisional current-year figures and income-tax returns.
2
Cash flows: bank statements, often for six to twelve months, checked for inflows, balances and bounced payments.
3
Track record: credit bureau reports, such as CIBIL, for the company and its promoters, showing existing loans and any overdues.
4
Business and asset: GST returns to cross-check revenue, plus the equipment's purpose, supplier and resale value.
The outcome is a sanction with a limit, tenure, pricing and conditions such as a security deposit or guarantee, a request for more information, or a decline.
When it is lighter or deeper
Every facility is assessed, but the depth depends on the size and risk of the exposure.
WHAT CHANGES
Lighter review
Deeper review
Size of facility
Small relative to turnover
Large relative to turnover or net worth
Track record
Several years of steady audited results
Young business or recent losses
Asset being funded
Standard, easy to redeploy or resell
Specialised, hard to resell
Existing debt
Low, repaid on time
High or stretched
How lenders and lessors assess
Credit teams turn the documents into ratios and checks, then weigh them with the business story. Thresholds differ by institution, sector and facility.
Repayment capacity and leverage.
DSCR compares cash available for debt service with the loan and lease payments due. Debt-to-equity and TOL/TNW (outside liabilities to tangible net worth) show how stretched the balance sheet is.
Consistency checks.
Revenue in the accounts is matched with GST returns and bank credits. Gaps, late filings or frequent cheque returns raise questions.
Keep audited accounts, GST filings and bank statements current: gaps slow down every assessment.
Where it shows up
A logistics firm applying to lease trucks
ILLUSTRATIVE
A logistics company applies for a ₹3 crore lease of trucks. The lessor reviews three years of audited accounts, twelve months of bank statements, GST returns and CIBIL reports for the company and its directors. Cash available for debt service is ₹2.4 crore a year. Existing loan repayments and interest come to ₹1.2 crore, and the new rentals would be ₹0.8 crore a year. DSCR is 2.4 ÷ (1.2 + 0.8) = 1.2. The credit team reads that alongside GST turnover, bank inflows and the trucks' resale value before deciding.