Equipment finance underwriting for loans and leases.
Equipment finance software for underwriting takes a loan or lease application, checks the documents, spreads the borrower's financials and tests the deal against the lender's credit policy. Kita does that end to end for asset-backed term lending and leasing, drafts a credit memo with every figure cited, and leaves the decision with your credit team.
What does equipment finance underwriting involve?
It means judging whether the business can make the payments, and what the equipment is worth behind them. Smaller deals often turn on the application and credit data, larger ones on full financials.
Credit application
Business and guarantor details, time in business and the equipment being financed.
Equipment quote or invoice
The vendor's price and the make, model and year, which set the amount financed and the collateral.
Bank statements
Recent business statements, which show revenue, balances and the payments the business already makes.
Credit reports
Business and personal credit for the company and its guarantors.
Financial statements and tax returns
Asked for on larger deals, to show that cash flow covers the new payment along with existing debt.
Loan or lease terms
Term, payment, residual or buyout, and any down payment or security deposit.
How does Kita underwrite an equipment finance deal?
Kita runs each application through five steps, against the credit policy you set for that product, and your credit team decides.
Collect the file
The AI Credit Officer messages the applicant on WhatsApp, SMS or email, asks for the exact documents the deal needs, checks each upload as it lands and follows up until the file is complete.
Check every document for fraud
Kita Capture reads applications, bank statements, tax returns and financial statements in any format. It flags tampering and forgery patterns and catches contradictions across the file, such as revenue on the application that the bank statements do not support.
Spread the financials and read the risk
Statements, general ledgers and bank data become a normalized period-over-period spread, with debt service coverage, margin, debt service and trend computed in one pass. Kita then reads what the spread alone does not show, such as customer concentration or margins falling period after period.
Draft the memo against your policy
The file is held against your encoded credit policy, and anything outside it is flagged, never waved through. The AI Underwriter drafts the credit memo with every figure cited to the document line it came from.
Your underwriter decides
Your underwriter reviews work that is already done and signs the decision. The application, documents, checks and decision stay in one system of record, or go into the loan origination system you already use through the API.
What do equipment lenders weigh?
The borrower's capacity to pay comes first, then the equipment as collateral and the structure of the deal. These are the terms that decide most files.
Payment coverage
Whether the business's cash flow covers the new payment along with its existing debt service. On larger deals lenders compute debt service coverage from the financial statements.
Collateral value
What the equipment is worth over the term, which depends on its type, age, useful life and resale market.
Loan or lease
With a loan the borrower owns the equipment from the start. With a lease the lessor owns it, and the business can return, renew or buy it at the end.
Application-only deals
Many equipment lenders approve smaller amounts on the application, credit reports and bank statements, and ask for full financials above a set size.
Time in business
Younger businesses carry more risk, so lenders often set a minimum or ask for a larger down payment.
Guarantees
Personal guarantees from the owners, whose own credit and finances then count in the decision.
The ratios in a Kita memo come from the financial spread, and every figure links back to the document line that produced it.
Who makes the credit decision?
Your underwriter does. Kita drafts and explains the analysis, holds the file against your credit policy and records every check, and a person on your team signs the decision.
Every figure links to the document line that produced it.
Your thresholds and required checks, encoded once, applied always.
The AI drafts and explains. A human makes every decision.
Every repayment and default sharpens the next recommendation.
API-first. Integrates into your existing LOS, credit engine or custom workflow.
SOC 2 Type II compliant and ISO 27001 certified.
Kita underwrites other loan types with the same method and your policy for each product: SBA 7(a) and 504 underwriting, Commercial real estate underwriting, Working capital underwriting, and the rest on the loan underwriting software page.