Equipment Finance Options

If you want to speed up your business in 2007, you’ll need to fine-tune your business approach and utilise your resources to their full extent. However, like many business owners, you may be reluctant to tie up your capital. So where can you turn to if you’re looking to finance major business-related purchases such as commercial vehicles, manufacturing machinery or IT equipment?

The answer is simple: asset finance. Asset finance works in such a way that the money you borrow is secured upon the business assets you acquire. For instance, if you’re planning to invest in a fleet of commercial vehicles, the money you borrow for your purchase will be secured solely on those vehicles. This means no other part of your business will be committed to – or at risk from – the deal.

But asset finance has even more to offer: because this type of finance plan is secured on the assets concerned, it’s very cost effective. It can, for example, release your business capital and free up your cash flow, allowing you to invest in new opportunities. Asset finance can also improve your return on investment and profit margins, as well as help you make the most of tax-saving allowances. And because many financial institutions can fund up to 100 per cent of the cost of your purchase, you can acquire the assets your business needs without risking your cash reserve.

Asset finance arrangements are also often fast and flexible: repayment can be tailored to match your cash flow, and deposits and repayments can be structured depending on your circumstances. Ultimately, solutions are tailored to suit the particular needs and objectives of your business – so the result is finance that works with – and for – you.

When it comes to expanding your business, a bit of extra capital can make a world of difference. Asset finance has the power to give you just that, enabling you to react quickly to new opportunities and keep ahead of the competition, whilst maintaining a minimum cost to your business. And there’s always an expert financial team ready to cater to your unique business needs, so there’s no reason to wait. Apply for an asset finance plan today – you can get a quote in minutes, have a decision in a few hours and secure funds within one day!

Martin Mcallister
http://www.articlesbase.com/business-articles/make-2007-your-business-fastest-growing-year-yet-with-asset-finance-101874.html

GoGetta helps businesses fund their equipment needs through our go.Rent go.Grow go.Own Equipment Finance Solution. This keeps their options open and preserves their cash to grow their business.

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http://www.johnsonreed.co.uk/leaseback.htm Market leaders for equipment re-finance, equipment refinance, equipment sale & lease back, business equipment sale & lease back, equipment sale & leaseback

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When you first decide to take up Commercial Finance from a Commercial Lender, you need to consider what you have to offer as security for the loan. Items that you can use to secure a Commercial Finance package are generally property, revenue and equipment.

In the UK, most Commercial Lenders will require up 75% of the value of the loan. You will need to come up with as much as possible to secure the loan. The items you put up to secure the loan will be confiscated by the Commercial Lender should your fail to honor the terms of the loan. Let’s look at each of the things that can be used and how they work.

Property
This can be in the form of residential property owned by the principles involved in the business. It can also be existing commercial property that is owned by the business. Finally, it may also include the property you are purchasing, if the Commercial Finance package is being used to purchase property.

When you put up property to secure the loan, the lender will be looking at the equity value of the property first and the total value of the property second. They will also look at the payment history of any property that has not been paid for outright. When the lender has finished looking at the property you have, they will look at your account receivables.

Revenue
The amount of revenue generated on a regular basis. This can be weekly, monthly, quarterly and even annually to see if the income is there to support the payments on the Commercial Finance package. The lender will also look at what your potential for grow is for your receivables. Your previous growth history will help them figure that out. They will look at how much is left when you subtract all your account payables, except the loan repayment and it should be greater than 1.35:1.

Equipment
The degree to which this is helpful will depend on the type of commercial financing you are looking for and the type of equipment you are planning to use to secure the loan. If the equipment has a long shelf life, it will be more desirable than things that have a short shelf life. If your business is a trucking company, the vehicles and the equipment used to fix them could be used to secure commercial financing.

The parts that you would use to keep them running could not be used to secure commercial financing. This is because, once the part is used, it no longer exists to secure the loan. The use of a truck to secure the loan is better because it will presumably be around for a much longer period of time.

If your business is a factory, you could use the equipment you use to make the product you sell to secure commercial financing or a Commercial Mortgage. The supplies used to make the finished product would not be good because they are not going to be around once the product has been made.

This does not mean that short life-span materials cannot be used, but they are counted as general inventory in much the same way as office supplies would be. You need to keep in mind that anything you use to secure the financing from your lender will be lost if you fail to honor the terms of the finance package. The longevity of the equipment is something that will be looked at carefully by the lender.

This is because some equipment, in some industries, out date very quickly and loose value very quickly as well. If you work primarily with computers, your equipment and software will be outdated and worthless long before a loan would be paid off. Factory equipment, on the other hand, will still retain its value many years after the Commercial Finance start date and should satisfy your Commercial Lender.

Darren Yates
http://www.articlesbase.com/non-fiction-articles/securing-commercial-finance-89838.html

Every business has a vision and a mission to follow. But, to achieve these, entrepreneurs need to have leadership expertise and adequate capital to finance the business. You may have the vision to reach the new heights in the world of business, but lack of funds may be stopping you from using your skills. You need not feel disheartened, unsecured business loans can provide you with the funds you need for making a mark for yourself as a “business tycoon”.

Businesses vary on the basis of size. A business could be of small, medium and big size depending on the capital invested and the scale on which business operate. Businesses are also categorized on the basis of ownership or on the way they are managed such as sole proprietorship, partnership and corporations. An individual requires capital to start up or expand the business irrespective of the size of the business. Unsecured business loans can work as a great help in such cases.

Unsecured business loans are designed specifically for UK businesspersons to finance their need for capital to start up or expand a business. Unsecured business loan offers flexibility to a borrower; he can use the loan for any purpose. Purpose of borrowing an unsecured business loan may vary from person to person. The amount borrowed with an unsecured business loan can be used for the commencement of business, expansion purpose, to finance the asset or equipment purchase and refinance or to restructure finances. Some entrepreneurs use the loan proceeds as a working capital. It allows a borrower to preserve his cash and working capital.

The best thing about an unsecured business loan is that it does not require a borrower to put a security against the loan. Thus, the borrower’s property is not under any risk of repossession.

Unsecured business loans are available for amounts ranging form £15,000 to £ 250,000. The repayment period of the loan vary from 1 to 20 years depending on the amount of loan a borrower wants and his or her credit history. This loan is best suited for short term and small cash needs.

A borrower by applying for an unsecured business loan gets the following benefits:-

o Retention of the Ownership — An entrepreneur can retain the current ownership in his company instead of raising funds by selling interest in his company to an outsider.o Cash Flow management- Unsecured business loan provides borrower an access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances. o Tax Advantage- Interest on the loan is tax deductible. Thus, can help in saving hard earned money of the borrower.

Each loan requires a borrower to pay interest on the amount borrowed. Unsecured business loan are usually provided at higher rate of interest as no collateral is put against the loan. You can either choose to pay a fixed interest rate or variable interest rate on the amount borrowed. In a fixed rate business loan, the interest rate applied to the outstanding principal remains constant for an agreed period that may be the loan term. Variable interest rate imply that rate of interest on the loan is not constant and fluctuates to common standard rate.

You need to understand the fact that the lender is entitled only to the interest on its loan. You are not liable to pay any percentage of the profits or a share in the company that an investor would expect.

A good credit history is always useful while applying for a loan. In case of an unsecured business loan, absence of collateral makes it necessary for a lender to recognize or identify the credit worthiness of the borrower to avoid any default by the borrower in the future. Higher the credit score, higher is the possibility of getting a cheap and fast loan, so work on your credit score and you will see it doing wonders for you.

Though, there are various lenders in the finance market. Online lenders can help you overcome all the shortcomings that you must have faced while borrowing from the traditional lenders. Apply for an online unsecured business loan that will save your time and money. You just need to fill up a small application form online which hardly takes few minutes and the lender will get back to you with the appropriate loan option. If you are looking for the best loan, then don’t relax. Collect loan quotes from various lenders and compare them, I assure you will definitely end up with the best deal.

Profit maximization is the main objective behind every business. But, to accomplish it, requires a lot of hard work and dedication on the part of the entrepreneur matched with adequate capital investment. Unsecured business loan can provide with the funds for your business, follow your intuition and work with dedication. And one day you will be known among the top businessman of the world.

Maria Smith
http://www.articlesbase.com/finance-articles/unsecured-business-loans-fuel-your-business-with-a-low-cost-finance-10751.html

How to finance your small or medium sized business in this crazy economy.

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There are specific and measurable strategies and benefits to using business credit to build your business faster and cheaper than without business credit. The old adage is, “the banks will only give it to you if you don’t need it.” The key is to maintain at least twice as much business credit as you need to hedge against any slow times or to be liquid enough to take advantage of once-in-a-lifetime opportunities. It’s not easy for most people to raise $250,000 or more for a small business to expand but if you understand the options available and take the steps necessary it can easily be realized.

The most important thing about obtaining large amounts of business credit is to have an officer of the company, with impeccable credit, personally guarantee the loans. If this isn’t possible, you will still be able to access a significant amount of credit but the process it will not happen overnight. For those small business owners with no credit or bad personal credit there are still options to access quick financing, one being bringing on a silent partner to do nothing but guarantee the financing. Make sure and run this by professional counsel before trying to implement.

The easiest business credit to obtain is business credit cards and the majority of which have phenomenal promotional deals such as 0% for 12 months or 2.9% for life, just for example and it is very possible to have access to $50,000 to $150,000 in revolving business credit in within a short period of time. There are even cards that will easily hand out $25,000 and allow you to balance transfer that amount into your business checking account so during the promotional period you have free access to these additional funds.

Traditional banks also offer two other widely used business credit options, the line of credit and equipment financing. A line of credit is similar to a credit card with the only difference being that you have cash access to 100% of your available credit. The best part of having at least one line of credit is that you can write yourself checks and not pay the fees that are typically associated with credit cards. Depending on the age and financial state of your business you can qualify for anywhere from $10,000 up to $1,000,000 in a cash access line of credit, think of the possibilities. These are typically thought of as unsecured financing because there is typically no collateral or equity that secures the financing.

The second type of bank financing is called equipment financing, which is can be thought of as secured financing for things that a business needs to operate. The best thing about this type of financing is that banks are much more lenient as to the amount of funds they will approve your business because the funds are secured by the equipment you purchase. So whether you need a printing press, a new lawnmower or in some cases a new company car this financing option might be for you.

No matter what, you need to have good personal credit in order to secure the highest form of business credit. If you are building business credit to obtain this same financing without a personal guarantee I suggest you work on perfecting your personal credit at the same time. You will be happy you did when you are trying for those $1MM lines of credit.

Shane Stone
http://www.articlesbase.com/entrepreneurship-articles/strategies-for-using-business-credit-to-finance-your-business-252062.html

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There are companies that help a business in hire purchasing and arranging for leasing. You can approach such dedicated companies for such services. UK Finance for hardware funding for the information technology business is also available in companies. Leasing services for small businesses, agricultural and industrial funding operations are available in companies dedicated to that service. A company called Richard Mares Asset Finance in UK finances for agricultural and industrial setups. If you need information on UK finance for equipment leasing, mortgages and commercial finance then you can approach companies like 1st Leasing Company and 1pm.co.uk. Many options for UK finance are available with them. Just check out their website for more details on the different types of finance available with them. For UK finance from 5,000 upwards you can approach companies like 1pm. They work closely with their clients to provide what they need.

Running a business and becoming successful in that venture requires a lot finance and financial assistance. In UK finance for business can be got from different sources. Business related financial services are provided by many organizations in that field. UK finance for leasing a company or organization, UK finance for debt collection, UK finance for Venture Capital can also be arranged.

Companies like Corporate Business Finance fund you for Plant, Machinery and for other corporate financial services. They provide finance in UK for many services like hire purchase, leasing, operating leases, factoring, release of capital, and commercial mortgages. Each and every business may need a unique funding requirement and it is a tedious task to arrange for funding when you need to run your business. A lot of time is wasted in searching for proper funding. Under such circumstances you can approach companies like these for UK finance for your funding requirements.

There are companies that fund only the big companies. Finance for big companies is given by UK finance companies like the Benington Securities. It is a private enterprise brokerage. They cover only the corporate investments. There are many companies that provide UK finance for even individuals. Companies like Troman finance provide funds for the individuals and small business firms.

For new start ups it is difficult to get finance in UK or elsewhere. Most of the finance companies will fund only the established businesses. But companies like Oak Leasing help even the start ups since they understand the difficulties that the startups face. The problems that the start ups face are only initially. If they have a proper business plan they could come up. The team at Oak leasing would finance your startups and for any new equipments that you need. More details are available in their website.

nicholas maben
http://www.articlesbase.com/finance-articles/business-finance-in-uk-113798.html

All you hear these days is that credit markets are tightening and small business is having a harder time financing equipment. That’s not always true, though. You just have to know where to look.

Financing equipment for your small business becomes an even more important strategy when the economy is down. As it may be harder to obtain any new lines of credit, it is important to preserve your current lines of credit and working capital.

Most businesses need some sort of equipment in order to operate. If you are looking to financing medical equipment, IT software and equipment, trucking or commercial, construction and heavy equipment, the needs may vary but the common goal is the same.

The primary goal of business equipment financing is to invest in capital while managing your cash flow and balance sheet. Financing comes in two basic forms: secured lending and leasing. In secured financing you own the equipment while the lender has a lien against it, and you make regular payments until the lien is paid off. In leasing, a lessor controls the asset, and transfers possession of that asset to the business for a specific time period in exchange for periodic payments.

So what are the advantages of financing?

Preserving your working capital is one such advantage. Paying cash for a large expenditure creates a risk on many levels, especially for a small business. What if your business equipment does not have the effects you hoped for, i.e. increased profits, efficiency, etc? If you paid cash, your cash flow can become tighter. Using your existing lines of credit can be risk as well; what if your lines of credit are maxed out by purchasing equipment and the bank is not willing to open any more lines for you?

You can even still find lenders that do not require a down payment. When you finance the full cost of equipment, it reduces your risk and transfers it to the lender.

Financing equipment also offers a hedge against inflation. When you finance equipment, the lender has a delayed use of funds because it does not get its money all at once. You pay over time. Your money loses value over time due to inflation. However, because you are locked in to a set payment, the risk of inflation is transferred to the lender.

Another thing to consider are the tax advantages. In addition to the usual tax advantages, from time to time Congress may vote for additional benefits as well, as they did for 2008. You lose certain tax advantages when you pay cash rather than finance your equipment.

You could also acquire more or better equipment by the use of equipment financing rather than dipping into your cash.

If you do your research, you can still find small business equipment financing loan options. The internet is a good source. There are still lenders who are willing to invest in your business, even in down times.

Jeffrey Roh
http://www.articlesbase.com/business-articles/equipment-leasing-finance-still-available-when-you-know-where-to-look-714166.html