27 posts tagged “equipment lease”
Being struck by a brilliant business idea can be exciting. But executing these ideas in real life is definitely a big challenge. The biggest challenge that most aspiring entrepreneurs face is the financial issue. Not everyone has enough funds that can be used as a start up capital for the business. Does this mean one can never venture in a business?
If you’re really determined to start your own business, finances alone should not hinder with your dreams. Business loans or start-up financing loans can help you put these brilliant ideas into action. What are the options available for you? Here are some:
Business Loan Options
Bank business loans. Applying for a small business loan from a bank is one possible option. If you want to try it out, be sure that you have all the necessary documentations ready for a speedier processing of our loan application. Be prepared to submit an efficient business plan to show your potential and capability as a new business owner. Since you haven’t yet established your business credit, your personal credit history would be used instead. When applying for a business loan, an excellent credit is a must. Otherwise, you may need to apply for secured business loan instead.
Secured business loans. A secured business loan is an option for those with poor credit rating. To make up for the risk, your lender would require you to submit a property, an asset, or a security deposit as a guarantee for your loan. Naturally, lenders impose higher interest rates for secured business loans. Nevertheless, you can research and look for a secured business loan lender that offers reasonable rates and terms.
Equipment Financing. If you need financial assistance to purchase the equipment or devices you need to start the business, you can apply for an equipment financing loan. This type loan uses the equipment you purchased as a guarantee for your loan. Through equipment financing, you can use your cash or available funds with the other areas of the business.
Equipment Leasing. This is another option to help you start your business operations sooner without the need to wait longer. Purchasing brand new equipment, special devices or machines can be very expensive. Equipment leasing enables you to acquire all the equipment you need without paying for it in cash or in full. Leasing is usually paid on a monthly basis although leasing companies do give other payment options as well.
Small Business Credit Cards. If you need additional funds to start up the business, a small business credit card is also a great option for you. You can use a business credit card to purchase equipment, buy stocks or as a back-up for emergency expenses. Small business credit cards can both be secured or unsecured so you can choose either of the two, depending on the status of your credit. A secured business credit card is easy to obtain even if you have bad credit or no credit at all. In fact, you can use it as a tool to rebuild your credit or establish credit history for your business.
Read more Getting Financed for Business
Resources more startup business loan, unsecured business start up loan, equipment lease for startup business and small business credit cards
The high costs of purchases in the market can certainly affect a business. If you only have limited funds, these expensive costs can hinder your plans and impair your business potential. For instance, buying the needed equipment for your business can eat up a large portion of your budget. How can you minimize your costs without compromising your business needs?
Fight High Costs Through Equipment Leasing
Is it possible to beat the high costs of equipment? The answer is yes. Equipment leasing may just be the solution you need. Instead of purchasing brand new machinery or vehicles at a high price, leasing gives you the opportunity to “rent” equipment at a much lesser cost. Through leasing, there’s no need to pay in full just to obtain the equipment you need. Most leasing companies do not even require a down payment but for those who do, it usually involves just a small amount of down payment.
The equipment leased is usually paid on a monthly basis although a business owner can also choose to pay on a yearly basis or choose other modes of payment depending on the leasing company’s terms. By the end of the lease term, you have the option to own the equipment at a cheaper price or simply return it to the lessor.
Equipment leasing is indeed, a practical and wise move not only for small businesses but for large companies as well. Even large companies take advantage of the tax benefits they can get from leasing equipment and structures. Unlike purchases, leases are tax deductible so it allows a business to cut off its costs even further. What are the other advantages of leasing business equipment?
No to Obsolescence
A great advantage that leasing has over purchasing equipment is that it protects the business owner from obsolescence. When you buy an equipment or a vehicle, its value depreciates as it gets old, worn out, obsolete. With the advancement of technology, equipment and vehicles today are easily replaced with the latest or the more enhanced versions in the market.
If you bought your equipment, you wouldn’t be able to just replace them with a newer model without spending a fortune. Because you’ve already invested a big amount of money on that equipment, re-purchasing is not an option. On the contrary, leasing gives you the freedom to obtain state-of-the-art equipment without spending so much.
Furthermore, leasing companies do not only provide equipment. Along with the hardware, a business can also obtain professional assistance, training and support with the installation and use of the equipment, particularly if it involves the use of advanced software and technology. This gives small businesses or new businesses the edge to keep up with their competitors in the market.
Finally, equipment leasing is easier to obtain than conventional business loans or bank loans. Lease applications can be sent online and you can expect a response within the same day. If you’re qualified, processing your lease is done immediately so you can receive the equipment you ordered in as little as 1 week or two.
Read More Equipment Leasing, Your Weapon in your Business
Resources for Equipment Lease for Startup Business and start up business loan
If you plan on getting a start up financing or an equipment lease financing, you should know some of the essentials in getting an approval quickly and easily. Here are the new rules of small business financing that every aspiring business entrepreneur should consider:
The importance of your credit history.
As before, this rule still exists even today. Lenders still base their approval upon an individual’s personal credit history especially for those who are just starting up a business. So before even submitting a business loan application, don’t forget to check on your credit report first. You can order a copy of your credit history from any of the 3 major Credit Bureaus (Equifax, Experian and TransUnion) for $12.95 or for free.
Once you’ve received your copy, check for any errors or incorrect details and inform the credit bureau who issued your report about this. If you have any derogatory record that has happened beyond seven years, see to it that this is not included in your current credit report. If you have a good credit status, you can be assured that lending companies and leasing companies will be willing to grant you an approval when they make on your credit report.
The New Automated Credit Scoring System
Today, lenders use the new automated credit scoring system for granting loan approvals for businesses. With this new system, a person’s credit worthiness will be based upon the new scoring system. The automated credit score is applied for businesses who wish to loan an amount less than $100,000. This new system makes way for speedier and easier processing of loan applications.
Business owners who are in need of immediate funding to start their business can take advantage of this opportunity by seeking a lender that uses this system. In addition, lenders who make use of automated credit scoring do not require a business plan to be submitted. Thus, there’s no need to hire a business plan creator or do the business plan on your own which can be both costly and time-consuming.
How to Avail of the New System
How can you benefit from these new rules of small business financing? If you want to apply with a lender that uses automated scoring system, better seek a larger bank than small financing firm.
To ensure speedy approval and processing of your loan, make sure you’ve checked your credit report for any errors or inaccuracy. On filling up the application, take the time to understand the questions and make sure that all the information you’ll give are true and accurate. Double-check the application before submitting it.
Another important thing to remember is to give accurate description of what you’re business does, in what industry you belong, and what type of business you’re running. An inaccurate description can cause the lending company or the bank to give your business an incorrect code. Lastly, in case you’ve been refused by a lender, request for an explanation and ask that a representative personally review your application.
Read more What are the New Rules of Small Business Financing?
Resources for start up financing, startup business loan and equipment lease startup business
Reports show that venture leasing is a growing trend in the market. The idea of venture leasing has evolved from venture capitalists investing in businesses. With only less than $3 billion worth of venture capitalist investment in the 1990’s, this number has dramatically increased to more than $106 billion in the year 2000.
Venture Leasing Defined
What is venture leasing? As the term suggests, it is an equipment lease provided by venture capital investors. Venture technology is a combined concept of equipment leasing and venture capital investing. In order to understand it better, let’s consider what business equipment leasing is.
As we all know, every business in the start up stage need sufficient funding not only to produce raw materials or buy stocks, but to purchase necessary equipment or devices as well. Instead of purchasing, equipment lease enables a business to obtain all the equipment it needs to operate the business without necessarily paying in cash. Equipment lease doesn’t require a down payment or cash payment. Instead, a business can opt to pay for it in different terms of installments. Therefore, through equipment lease, a business can use its existing capital to spend on other areas of the business.
Sources of Venture Leases
A business owner who doesn’t have sufficient own personal funding turns to venture capital investors. Venture capitalists provide financial support not only for businesses that are in the start-up stage but for established businesses undergoing expansion as well. Many capitalists provide venture leasing as well which means, they also provide financial support for the equipment leased by a business.
Who are the people that provide a venture lease? Generally, lawyers, financial consultants, independent lessors and individuals who have the financial means to invest can offer a venture lease. Banks, financial institutions, and venture capital firms are groups that businesses can turn to for a venture lease.
Generally, lessors who provide a venture lease compensate the risk of investing by requiring a significant percentage of returns on their investments. Venture lessors can ask as much as15% to 20% or returns from the money they invested.
How can successful venture lease be achieved? In order to succeed, a venture lease transaction should have a supportive venture capital investors and an excellent management team. The management team is responsible for the running the different areas of the business such as production, finance, sales, marketing, etc. Of course, a great team needs a reliable back up from its venture capital sponsors. Financial sponsors differ in their ability to provide resources that the business needs and if there is insufficient support, then it can become a problem for the managing team
Obviously, the increase in the number of venture capital investors also open up more opportunities for venture leasing. Today, more and more aspiring entrepreneurs are given the break to bring their brilliant business ideas to life. Lack of financial funding isn’t hindrance any more for these businesses. As more leasing companies offer venture leasing services, it can only mean a better future for the business industry.
Read more Build Your Own Enterprise Through Venture Leasing
Resources for Startup Business Loans and equipment lease for startup business
When starting up a business, purchasing the needed devices or equipment may cost you a fortune. If you only have a limited start up capital, these expenses alone can eat up your budget. The good news is, businesses now have the option to start the business without the need to buy brand new equipment. How? Though business equipment leasing. In this article, let’s discuss the benefits of leasing business equipment:
Equipment leasing frees up your cash. You don’t have to use up all your cash just to buy new computer, machines or other devices necessary for your business. You can save your cash for more important expenses instead. Add to this, equipment leasing do not require expensive down payments and you can submit your payments in installments so that it’s easier on the budget.
Equipment leasing enables you to start the business now. Again, you don’t have to wait to save up a big amount of money just to start your own business. In fact, many successful small business owners were able to overcome tight budget limitations and execute their business ideas through leasing equipment.
Equipment leasing provides 100% financing. When you lease business equipment, everything you need to start using your equipment is taken care of by your leasing company. From freight services to installation as well as providing training and support – all these services should be included with your lease package.
Leasing lets you use state-of-the art equipment at a much lesser price. Even if you have a limited capital, you have the option to choose the latest and most advanced equipment for your business. If you’re going to buy a new device, you may be forced to settle for an older version just because it’s cheaper and more affordable.
Equipment leasing saves you from obsolescence. Purchasing a brand new computer today requires an expensive budget. Yet your brand new computer can obsolete and lose its value after only a few years. Through leasing, you can replace the equipment you leased for a better one at any time you want.
Equipment leasing is eligible for tax write-offs. An equipment lease can be considered as a business operating expense and is therefore eligible for tax write-offs of exemptions. Imagine how much you can save from your equipment’s tax value.
It is easy and convenient to obtain. Compared to applying for a business loan, leasing equipment is a lot more convenient, easier and faster. You can search for the best equipment leasing company online, send in your application online and get approved online as well. The process is not complicated and you can get approved within the same day.
Equipment leasing comes with more flexible payment terms. Leasing isn’t just limited to one type of payment term. You may choose to pay for your equipment lease on a monthly or annual basis, whichever is more suited for your business. Equipment leasing companies usually provide a number of payment options and payment schedules to accommodate their client’s needs. Choose a repayment term that is most convenient and appropriate to your financial situation.
Read more Equipment Leasing - a Best Option for Your Business?
Resources for Business Equipment Lease and Startup Financing
Here are some tips on how you can get approved for a construction equipment leasing more quickly:
Check your credit standing.
Poor credit status can get in the way of getting your construction equipment lease. Even before you apply for an equipment lease, see to it that you don’t have any problems on your credit history, especially on your business accounts. See to it that you have made all your payments too all your creditors. In addition, keep all your invoices or receipts of your payments for future references. A great credit history will surely speed up the approval of your lease.
Prepare necessary documentations.
Prepare the necessary documentations to avoid delaying your approval. You can prepare a document that contains complete information about your business, such as a brief history, the nature of the business, the industry where your company belongs, its current standing in market, your projections for the business, and other important details. Also, prepare in advance a list of all the equipment you wish to include in your construction equipment lease as well as the leasing terms that you expect as a lessee.
Include your business’s copy of tax returns and financial statements.
If you’re applying for construction equipment financing that amounts to more than $75,000, make sure you have already prepared financial statements. Leasing companies would appreciate it if a business can present its financial standing for at least the past three years of operations.
Include References
It is recommended to provide at least three references with your leasing application to support your credibility as a business. Possible references can be your past or present lender, vendors, or other creditors you’ve done business with. Just make sure that you have a good history with these creditors and that you did not have any conflicts with them.
Include professional partnerships.
If you business is sponsored by a venture capitalist or other independent investors, include them in your report as well. If your business enjoys the sponsorship of reputable investors, naturally it adds to your credibility as well. Leasing companies love to provide service for promising businesses in the industry.
Consider several leasing companies.
Get quotes from at least three different leasing companies so you can compare rates and terms. Since leasing companies have their own specializations, it would be better to consider leasing companies that especially caters to your line of business. Remember not just to compare prices, but the terms and conditions of the lese as well.
Arrange for ACH debiting payment system.
This payment system is a coordination between you, your leasing firm, and your bank. This way, your bank can automatically send your lease payments on specific dates straight to your leasing firm. This arrangement is ideal for leases with monthly installments since it prevents delays or skips on your payments.
Read more How to Get Approved For A Construction Equipment Leasing
Resources for Business Equipment Lease and Startup Financing
Businesses have the option to obtain the latest types of equipment through equipment leasing. Equipment leasing enables a business to get to get all the equipment it needs without paying for them in cash. By renting equipment in installments, the business owner can use his existing finances for the other areas of the business. Consider the following benefits of equipment leasing:
Gain access to the latest in technology.
State of the art equipment doesn’t come cheap. In order to obtain the latest devices in technology, big financial resource is required to afford them. With the help of business equipment leasing, even small businesses who are just starting up or in the early stages of the business can gain access to the latest equipment in technology.
More options to choose from.
Equipment leasing gives a business more options to choose from. From small devices used in an office setting, to the most sophisticated machines used in manufacturing- every business has the chance to get these equipment even with a limited budget. In fact, unlike purchasing, equipment leasing doesn’t even require a down payment.
Flexibility of terms.
Aside from the wide selection of equipment, businesses can also avail of different leasing terms that best suit their finances. As a business owner, you have the option to choose a payment arrangement that will best fit the cash flow of the business. Leasing terms can range from monthly installments, annual installments, and other special payment arrangement.
For instance, businesses that operate depending on the season can avail of a leasing option called a skip lease. With this arrangement, a business can skip or delay payment during low seasons without paying for penalty. Each leasing company provides different leasing terms that every type of business can surely benefit from.
Equipment Leasing Provides more convenience.
Compared with applying for a loan to purchase equipment, leasing provides an easier process and a more lenient procedure. Most lending companies and banking institutions have strict regulations for its loan applicants. On the contrary, simply by submitting the necessary documents, you can expect to get and approval right away. Once you get approved, you can immediately receive the equipment you ordered without having to wait for a long time.
Surely, equipment leasing is an option worth exploring for a business. Generally, equipment lease companies require a business to submit a business plan and a list of equipment needed for leasing. In most cases, an equipment leasing firm will check on your personal credit history for at least the last six months. If you’ve decided upon obtaining an equipment lease, prepare the necessary paper work to be submitted to help better speed up the lease process.
Read More Effects of Equipment Leasing In Technology
Resources for Start Up Business Equipment Lease and Business Equipment Lease
Many businesses are turning to equipment leasing not only to start up a business but to attempt expansion as well. Is it really worth it to lease business equipment? To answer this question, let’s talk about the basic facts of equipment leasing.
Is it better to lease or to loan?
It is true that a business can obtain a loan to get the necessary funding and purchase all equipment needed for business. However, obtaining a loan uses up most of your available credit which you can use for other purposes. In addition, buying equipment ties up your money and it could take a while before you can regain the amount you spent on purchasing those machines. Leasing frees up your available credit and frees up your cash flow as well.
Who can apply for a lease?
Equipment leasing isn’t just for those who lack funding. Any type of business - whether a small enterprise, a home based business, a large company, or even a non-profit organization - that needs equipment or devices can apply for a lease.
How to get a lease?
A business applying for an equipment lease should prepare a written document that contains information about the history of the business, business projections, what the company does and other relevant details. Financial statements and tax returns are also required to process the lease. Don’t forget to include a list of references to back up your credibility as well. These documents will be submitted along with the application form as well as the list of the equipment needed.
Will the leasing company provide the equipment?
The leasing company will not be the one to provide the equipment. Instead, the list of equipment will be submitted to an equipment supplier. The equipment supplier will be the one to deliver the needed equipment to the lessee. Of course, the leasing company takes care of the expenses.
Types of lease
There are different types of lease that leasing companies offer. The terms will depend on the equipment leasing company providing the lease. A lessee has the option to lease the equipment and return them by the end of the lease term or keep the equipment and buy it from the leasing company at a lesser price.
One type of lease is especially designed for newly start-up businesses who may not yet have enough funds to pay for the first few months of the lease. This leasing option is called a “step-up lease” where the business is expected to “step-up” with its deferred payments once it has gained its footing. There are other types of lease which are especially designed to match a business’s financial standing. It is recommended to consider each available lease term before choosing the one that best suits the business.
Can you back out from a lease?
A lease agreement is fixed and not cancelable. However, if there are some problems with the business, the lessee can make arrangements with his leasing firm so that modifications or changes can be made on the lease.
Read more The Simple Process Of Equipment Leasing
Resources for Start Up Business Equipment Lease and Business Equipment Leasing
Equipment leasing costs less. Compared to purchasing, leasing costs much less and is an ideal option for businesses with small or limited budget. Most lessors do not require down payment. If there is a down payment, the amount required is small and easy on the pocket. I
In addition, the monthly lease or rent is affordable even for start up businesses. There’s no need to spend half or a third of your business budget on equipment alone. Through leasing business equipment, you can utilize your financial resource in more ways.
Save your business’s credit limit. Leasing allows you to obtain the equipment you need to start your business operations without using your credit limit. If you need additional funding or cash assistance for future projects and expenses, a healthy credit would easily impress prospective lenders and you can get approved more quickly.
Eliminate obsolescence. Equipment and machines are constantly evolving. Almost every year, you can find a more enhance version of an equipment in the market. With purchasing, you’re bound to the one you’ve bought because you’ve already spent a lot on that particular equipment. On the contrary, leasing gives you the flexibility to exchange the equipment you have for a better one at any time. More importantly, being able to use the latest technology in the market ensures your business’s maximum performance.
Uncomplicated process. Applying for a business loan or an equipment loan can take some time. Not only that, banks and lenders are often very particular about the documents you need to submit. Failing to complete your requirements can cause delays or a disapproval of your application. On the opposite, equipment leasing doesn’t require a lot of documentations.
Typically, you can submit your application online, get a response in that same day, and receive the equipment you leased in a few days or within a week or two. Those with good to excellent credit can take advantage of lower interest rates and better deals from lessors but a bad credit also does not prevent one from getting a lease.
Keeps cash flow steady. Equipment leasing helps keep the business’s cash flow steady. Since you won’t be spending a large percentage of your funds in buying equipment, you can place a larger portion of your budget on your cash reserves. Instead of taking out a loan, you can use your available funds instead to cover up your expenses.
Tax Advantages. Another benefit of leasing is the tax advantage. Purchases are automatically taxed while leased assets can be exempted. Since the equipment remains to be the property of the lessor, leased equipment can be written off from your taxes. Ask your attorney about your tax privileges particularly if you are a homebased business owner.
Read More What Benefits Can You Get from Equipment Leasing
Resources for Equipment Lease for Startup Business and Startup Loan
Not all businesses have sufficient start-up capital. In addition, not all established businesses have enough money to support all expenses necessary for expansion.
So the question is, is equipment leasing the right choice for you? To answer this question, let us consider the benefits of leasing equipment over purchasing.
But first, what is equipment leasing? Equipment leasing simply means renting business equipment. Instead of obtaining a loan to purchase equipment, equipment leasing lets you use the equipment and start operating the business without the need for down payment or cash payment. Payment may be done in monthly installments or yearly payments depending on the type of lease you’ve obtained.
So what makes equipment leasing advantageous over purchasing? First of all, it doesn’t repress cash flow. With purchasing, a business is forced to give up a huge portion of its finances to buy expensive equipment. It can take some time before a business can regain the amount of money used for buying equipment. On the contrary, equipment leasing allows a business to start manufacturing and managing the business without the need to dispel big cash. Thus, there would sufficient cash available to support other areas of the business.
Leasing equipment presents different types of leases for every business. Those businesses that are operates on a seasonal basis can avail of a “skip lease” where skipping payments during slow seasons are allowed without any penalties. There is also a type of lease called “step-up” lease where businesses who are just starting up can defer lease payments until the business gains footing. These are just two examples of leasing terms which are available for a business. Every equipment leasing company offers different types of lease that each business can consider before taking their pick.
Equipment leases are tax deductible. Lease payments can be considered as a business’s monthly expense which makes it a hundred percent tax deductible. Every business owner who leases equipment should remember this important fact and inquire from their lawyers or accountant on how they can avail the tax deduction.
Another great advantage about leasing business equipment is that it lets you keep up with technology. Machines and equipment are constantly and continuously enhanced. A particular device can be outdated or get obsolete in just a few years. If you purchased the equipment, it wouldn’t be practical to buy the latest model and throw out the money you spent on that equipment. If you leased the equipment, you can easily trade your current equipment and replace it with the latest model in the market.
It is also worth mentioning that applying for an equipment lease is so much easier than trying to obtain a loan. Commercial banks and lending institutions generally have strict policies and procedures before granting a loan approval. In most cases, an excellent credit history is required to qualify. A business plan must also be presented in order to get approved. Equipment leasing companies do not impose such requirements from their clients. Usually, leasing companies only consider the last six months of an individual’s credit history.
Read More Is Equipment Leasing The Right Choice For You?
Resources for Equipment Lease for Startup Business
