122 posts tagged “start up business”
Whether you’re starting up a business or in the process of expanding the business, funding can be a challenge. Applying for a business loan can take time and you may not want to wait too long. Therefore, why not consider equipment lease financing?
For many successful businesses, equipment leasing has greatly helped them in getting the financial assistance they need. Is it really wise to lease equipment? To answer this question objectively, perhaps it’s best to take a look at the advantages that leasing equipment offers for a business:
Equipment leasing frees up your cash flow.
Equipment leasing does not require a down payment. An equipment lease allows a business to pay for the equipment in monthly installments so there’s no need to put in huge amount of money just to get the needed equipment.
If you want, you can also apply for a lease term that enables you to submit your payments on a yearly basis. Thus, you can use your existing finances to support different functions of your business such as the production, manpower or marketing campaigns.
Equipment leasing gives easy approval.
Compared with obtaining a business loan from banks, equipment leasing isn’t too complicated. Most equipment leasing companies will only consider the last six months of your credit history. In addition, leasing firms will require a business plan to be submitted and a list of the equipment you wish to obtain.
Preparing the necessary documents in advance would help speed up the processing of your equipment lease application. Once you have submitted the necessary documents along with your leasing application, you can expect to get immediate approval and get the devices or machineries you ordered right away.
Equipment leasing lets you use state-of-the-art equipment.
Purchasing the latest equipment in the market can be really expensive. As a starting business or as a growing business, you may have a hard time getting sufficient budget to buy these machines especially if you need a lot of equipment.
Nevertheless, leasing gives business owners a one-of-a-kind opportunity. Yes, through equipment leasing, you can choose the latest equipment in the market without breaking your budget.
Equipment leasing protects you from obsolescence.
Devices are constantly modified and better versions are introduced in the market almost on a yearly basis. Purchasing equipment doesn’t give you the leeway to change old or obsolete equipment as easily. By leasing business equipment, you can choose to replace your leased equipment for newer models in the market.
Using only the latest in technology will surely give your business the productivity and the edge over your competitors. To avail of this option, make sure that a "modern equipment substitution clause" is included in your lease term.
Equipment leasing gives an entrepreneur special tax benefits.
Leasing payments are considered as monthly expenses or operating costs, not debt. Thus, it is possible to write them off from your taxes. However, to be sure, it is best to consult matters about filing taxes with a business lawyer or with a certified public accountant.
Read more Small Business Equipment Leasing, is it a wise choice?
Resources for Business Equipment Leasing, Equipment Leasing for Startup Buisness and start up business
We often hear that in order to succeed in a business, planning and preparation are needed. Many people have rushed-in into opening up a business only to find that they weren’t prepared for the challenges. Sadly, most of them who opened a business unprepared were forced to close shortly.
If you have plans on venturing into your business, don’t overlook the necessity of planning and preparation. Let’s discuss the main things you should consider in advance when starting up a business.
Commitment, Discipline and Determination
Starting up your own business will demand lots of your time and energy particularly on the early stage of the business. If you were used to working eight hours, going home, and leaving all your tasks in the office as an employee, things will be a lot different running your own business.
You would be facing loads of tasks in your hands, and lots of responsibilities and decision-making on your shoulders. Yes, you can work in your phase and at your own time, but if you don’t have a work schedule to follow, or if you’re not following the schedules you’ve set, your business will be in trouble. Thus, self-discipline, commitment, and determination are qualities that you must have and you must nurture if you want to succeed in a business.
Knowledge About the Business
Being knowledgeable in running a business and in the specific type of business you wish to start on is very important. Most people who overlooked this factor have failed with their business. For instance, you need to have at least a basic knowledge in accounting to be able to manage more effectively. You need to know the basics about working with a computer to handle your tasks more quickly and easily. If you wish to start an online business, then you should know at least the basics about how internet marketing is done.
If you think you lack the skills and knowledge on these things, it’s about time to start learning about it before you even start the business.
Understanding and learning about business management is essential to be able to make the right decisions for the business. Furthermore, managing a business involves different areas such as marketing, production, accounting, human resources, finance, and others. Even if you will be hiring employees to perform these tasks, you still need to have at least the basic understanding about these functions in order to manage your people and the business effectively.
Start up Financing
Do you have sufficient funds to start up the business? This is a question you have to seriously consider. If you have your own resources to fund the business, it is still possible to get help from other sources. Nevertheless, you have to be very careful and certain when trying to obtain funds for your business.
Possible options to obtain start-up financing would be to borrow from friends or relatives, get a loan from banks or lending institutions, seeking angel investors, applying for a business equipment leasing or seek a government grant. Whatever you decide, see to it that you’ve made extensive research about each financial source before choosing the one you feel is best. Make sure that you’re dealing with a legitimate and trusted company and lastly, see to it that a lawyer has checked that all agreements written in the contract are legal and true before it is signed by all parties involved.
.
Read more Business Start Up and What You Need
Resources for Start up business, start up business financing and business equipment leasing
When starting up a business, small business entrepreneurs usually seek out business loans to obtain the funds they need. However, not all banks cater to all types of businesses. For instance, larger banks may not be as acceptable with small businesses as smaller banks would. In most cases, larger banks prefer clients from larger firms or established businesses rather than small enterprises.
If you have a small business, it would be recommended to apply for a loan from your local bank as it is more likely to grant approval. In addition, smaller banks are much more accommodating to small business entrepreneurs, giving them the personal attention they need.
Now let’s discuss the major factors that a bank considers when reviewing small business loan applications:
Credit History. Any lender makes the decision to approve a loan or not based upon the individual’s credit history. Needless to say, those who have a high credit score can expect to get a loan approval more easily than those who have less-than-perfect credit.
In fact, people who have low credit scores are at risk of getting rejected and may have to settle for sub-prime loans. For this reason, a business owner is advised to check his/her personal credit history first before submitting a loan application. Thus, if he/she finds that his/her credit score is low or unimpressive, the necessary steps can be done to boost the rating.
Capability to pay. A bank also considers the business owner’s capability to make repayments. This is why banks require business loan applicants to submit their
financial statements for at least the past two years to make sure that the business can produce sufficient cash flow and keep up with loan repayments at the same time.
Working capital. This is the amount of money you intend to borrow. Is it within a reasonable range? Asking for an amount that is larger than your capacity as a business would will most likely result to a rejection. Thus, consider carefully about exactly how much money you can afford to loan before submitting your application.
Loan Security. Lenders love borrowers who have properties that can be submitted as a security for their loan. Properties could be a home or a lot which can be used as collateral. If you have assets in your account, you can expect that the bank will approve your application.
Your reputation. Aside from your credit score, the lender will also measure you credit worthiness based upon your reputation. This is especially true from small businesses seeking a business loan. Expect that the bank will be conducting a background check on your business’s reputation as well as your personal reputation as an entrepreneur.
Reason for loan. A lender will also consider your purpose in obtaining a loan. What would you do with the money you wish to loan? Are you going to use it as working capital to start up a business or for expansion? Whatever your reason is, your lender would consider if it counts as a sensible reason for getting loan.
Read More How to Obtain Business Loan from a Bank
Resources for Start up business loans and new business loans.
It is a fact that a business isn’t always guaranteed to succeed. In some cases, despite all your best efforts to save the business, you are left with no other choice but to sell. But selling a business doesn’t always mean that it was a failure. Some business owners are faced with the need to sell because they don’t have the time or the energy to run it or sometimes because they just don’t want to continue with it. Whatever your reason is for selling your business, there are different ways on how you can get through with your selling. One way to do so is by seller financing.
What is seller financing?
Simply put, it is where the business seller offers to finance the business so that the buyer will not need to apply for a financing loan of his own. This helps a seller find more prospective buyers, especially those who do not have the requirements needed to secure a loan from a lender.
As part of the deal, the buyer of the business will only pay the agreed upfront payment, and continue with his payments in installments within the time period that is agreed upon between both of them (the buyer and the seller). The seller will take a lien against the business until the buyer completely pays all his balance in time. As the seller, it will give you the benefit of continuously profiting from your sale with a higher interest.
Naturally, the price of the business will be much higher since higher interest rates will be incurred. However, most buyers prefer this way of selling, because it gives them ample time to make repayments and it also gives them more confidence on the profitability and potential the business. Since the business seller is willing to finance it, then surely it still has a strong potential in the market.
Should You Offer Seller Financing?
Given that seller financing has its benefits, it also has its risks. First of all, if the business will not be a success, then you won’t be able to claim the full repayment that you originally planned. Yes, there is a lien on the business but it doesn’t guarantee that it will be enough to give you the complete price you spent on the business. For this reason, some business sellers ask for additional security or collateral from their buyer just in case the business fails.
If you intend to sell your business, seller financing is an option you can consider but remember that this option may not be the best option for all business owners. It does give you an opportunity to get more from your investment, but it is also accompanied by risks. Furthermore, if you’re selling the business because you need the cash, then definitely this isn’t the way to go. Thus, study your situation carefully before deciding to choose this method of selling.
If however, you do choose to go on with seller financing, remember to carefully check on the buyer’s background and reputation. Also, consider asking for an additional collateral to give yourself more security and protection.
Read More Who Will Finance The Purchase of Your Business?
Resources for Equipment Lease for Startup Business, start up business loan and start up business 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
June 18 (Bloomberg) -- The government’s bailouts of General Motors Corp. and Chrysler LLC are unpopular among large numbers of Americans, and that is helping to drag down President Barack Obama’s approval ratings, according to three new polls.
A survey published today by the Pew Research Center for the People & the Press found that the percentage of respondents approving of the way Obama is handling the economy dropped to 52 percent from 60 percent in April. Fifty-eight percent said they opposed spending billions of U.S. taxpayer dollars to keep the automakers afloat, compared with 36 percent in favor.
A New York Times-CBS News poll found 46 percent disapproved
of the government’s handling of the auto industry’s problems,
while 41 percent approved. And in a Wall Street Journal/NBC
survey, 53 percent disapproved of the U.S. providing financial
aid to the automakers. Detroit-based General Motors filed for
bankruptcy protection June 1 and Turin, Italy-based Fiat SpA
bought a stake in Chrysler, which is also partially owned by the
U.S. government.
Resources for
Applying for a business loan can be very difficult if you have poor credit. Most lenders prefer clients with good to excellent credit history because they are considered as low risk borrowers. Nevertheless, because there is a big market for bad credit loans, some lenders are willing to extend new credit even to those with poor credit scores.
Secured and unsecured Bad credit Loans
A bad credit loan can be secured or unsecured. Secured bad credit loans are those that require collateral to make up for the applicant’s bad credit. In this case, the property submitted acts as a guarantee for the lender in case the borrower fails to keep up with his payments.
On the other hand, unsecured loans for businesses with bad credit can be acquired without submitting any form of collateral but with higher interest charges. For those who do not have a property to submit or who do not want to put their homes on the line, an unsecured bad credit loan is an option.
Repayment terms range from 1 year to 30 years depending on the amount loaned and the lender. Ideally, a bad credit loan with a fixed rate of interest and a longer term is a better choice especially for those with bad credit. A longer repayment term would mean a lower monthly payment and a fixed interest gives you the security that your payments would remain the same despite changes in the Prime Rate.
Benefits of a Poor Credit Business Loan
What benefits can you get from acquiring a poor credit business loan? First of all, it gives you the opportunity to obtain the funds you need for the development or enhancement of your business. Although these loans come with higher rates, you can still get the cash you need right when you need it.
Another benefit is the chance to improve or repair your damaged credit history. After getting approved on your loan, you can prove your credit worthiness by timely submitting your payments. After about 6 months of consistent payment, you should be able to see a progress in your credit score. More importantly, improving your credit history would also enable you to qualify for loans with lower interest rate and better deals in the future.
Consequences of a Poor Credit Business Loan
Bad credit loans do offer a great opportunity for business owners. However, before deciding to apply for a secured or an unsecured poor credit loan, it’s crucial to be sure that you can keep up with your payments. Defaulting on your poor credit business loan would only hurt your credit history even more. Aside from this, you’ll be jeopardizing the business since it would be very difficult to get approved for another business loan.
Do not sign up for any type of loan without taking the time to read and understand the complete terms and conditions of your lender. See to it that there are no hidden costs that can make repayment more difficult for you. Lastly, borrow only a realistic amount that you need for your business and use the money with care and discretion.
Read More Getting A Business Loan Despite Your Poor Credit
Resources for
Vendor Equipment Leasing Programs
The demand for new and/or additional medical equipment continues to rise among heath care facilities. Quick Medical has recognized the need to offer hospitals, medical clinics, and other health care facilities the option of leasing new and/or additional medical equipment versus paying cash or long-term high interest rate financing.
Snoqualmie, WA (PRWEB) May 28, 2009 -- With the continued fluctuations in interest rates, slowing of the economy, and competition for new patients, a number of hospitals, dental and medical clinics are struggling with reduced cash flow and the dilemma of how to purchase new or additional medical equipment to meet the needs and requests of their patients.
"The medical industry continues to remain strong with the constant and increasing need for health care goods and services," said Bobby Beaulieu, IT Director at Quick Medical. "For many health care facilities, profit margins and cash flow are lower and the cost of providing newer or additional medical equipment is higher. At the request of our customers, we made the decision that we would offer a new medical leasing program designed specifically for hospitals, medical clinics and other health care facilities."
Resources for
Vendor Equipment Leasing Program
Spencer Richman, of Shaker Heights, Ohio, became president of the largest equipment leasing association in the United States at the Annual Meeting of the National Association of Equipment Leasing Brokers (NAELBä) on May 2, 2009 in Las Vegas.
PRLog (Press Release) – May 11, 2009 – Mr. Richman is the owner of American Financial Network, Inc., a commercial equipment leasing and financing company in Beachwood, Ohio. American Financial Network has been providing equipment leasing and financing to businesses and municipalities nationwide for over twenty years. The company offers leasing and financing for nearly all types of business equipment including computers, manufacturing equipment, software, vehicles, construction, medical, office equipment and more. Leases range in size from as little as $5,000 to as much as a few million dollars. While bank financing is very difficult to obtain these days, American Financial Network continues to provide funds for companies who need to acquire equipment.
The National Association of Equipment Leasing Brokers was formed more than twenty years ago to serve the interest of equipment leasing companies who broker or sell their leases in the secondary market. The association has experienced phenomenal growth, increasing from a few hundred member companies just a few years ago to over one thousand leasing companies at the end of 2008. NAELB member companies are in all fifty states and Canada and range from small one to two person operations to large national bank owned leasing companies.
Resources for
