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Some point-of-sale terminal lessors are rejecting an increased percentage of lease applications because more merchants are facing financial difficulties and have lower credit scores, according to industry insiders. "There are a lot more customers out there" with deteriorated credit, says Jose Lopez, vice president of operations with Global Processing Systems Inc., a San Dimas, Calif.-based merchant-service provider. Many merchants are facing foreclosure or are failing to make necessary bill payments, which negatively affect their credit standings, he says. International Lease Center has seen "a big downturn in people's credit" in recent months, which has led it to reject 60% of merchant applications, says Lisbeth Fairbanks, vice president of the Oxnard, Calif.-based leasing company. "We have never declined 60% of our paper before," says Fairbanks. The lessor, which rates credit scores in the 500s on the "medium-to-poor side," recently started seeing more merchant credit scores in the 400s, she says.
