Author : Jonathan PowellUtilizing a Collateral Lease Program may be the best solution for you if you are having problems getting approved for the new equipment that you need, either to replace something that just broke down or that you need to expand your business because you just landed a new contract for your services

What is a Collateral Lease?

A Collateral Lease uses your additional collateral in your currently owned hard asset equipment(see examples of these below) and/or your real estate equity, either in your business or your personal residence

By utilizing this type of lease, you are not restricted on the equipment type being leased, your credit scores, or your time in business Also, financials are usually not required with this type of lease since additional collateral is being provided to secure the lease for your new equipment

Lease deals that can be helped by using a this type of lease program include some of the following:

*Traditional Asset-Based deals
*Sale-Leasebacks
*Private-Party Sales
*Start-Ups
*Working Capital
*Owner/operator Trucks
*Prior Bankruptcies
*Tax Liens
*Judgements
*Repossessions
*Slow Payments

If you have experienced any of the above and have been turned down by traditional banks and leasing companies then you need to take a cold hard look at how a collateral lease can help you

A terrific way to use this type of lease would be during the start-up period of your business During these tough times the banks are frowning upon lending money to start-up businesses, but if you are able to provide collateral a lease may be the way to go to finance your start-up equipment needs

Another good idea is to use this type when you have a private-party sale For example: You are selling a backhoe to someone who really needs it, but they don’t have the ability to pay in cash and the bank is out of the question If they have some collateral to put up against the amount needed for the lease, be it a hard asset or real estate equity, the deal can usually be done quickly

Some of the best equipment that can used as a Hard Asset would be:

*Trucks and Trailers
*Construction/Yellow Iron
*Loaders
*Excavators
*Cranes
*Bulldozers
*Logging Equipment
*Machine Shop Tools
*Large Forklifts

Other types of collateral that can be used as additional collateral for this program would be: stocks, bonds, CDs, Mutual Funds, Non-Tax-Advantage Accounts and personal vehicles with a value greater than ten thousand dollars

The above is just a sample of the equipment that can be used as collateral This type of lease may work well for you if you have been turned down for traditional forms of leasing or financing There are other types of equipment that can be used, but they are not as valuable as the lists above

In these tough times you need to gain any bit of good financial knowledge that you can grab and this type of program can help assist you in these times when the banks and other lending sources tighten up their guide lines, but these are the times that you really need the money to get the equipment you need This is a possible solution for you and is available for your business to use today Rob Renk writes about Alternative Financing for Small Businesses. He has over 15 years experience in financial services and is owner of EquiLeaseOne.com. If you want more information about a Collateral Lease,
you can contact Rob directly at 303-521-7622 or click here. Submitted By ArticleUnited.com

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Author : Christine OKellyStarting a new business is an exciting time filled with hopeful expectations Indeed, the promise of future success can feel exhilarating For many types of businesses, new owners are often stunned by the amount of capital required to get started It’s not uncommon for the dreams of a newly-minted enterprise to turn into a case study of financial limitations

Depending upon the industry in which your company operates, you may need industrial tools, landscaping gear, heavy-duty vehicles, or computers Your decision regarding whether to purchase or lease these items will be based upon your unique situation Below, we’ll explore the choice between equipment financing and leasing We’ll look at the decision in the context of your short and long-term needs, cash flow circumstances, and tax considerations

Short-Term Vs Long Term Use

Some of the assets that your business needs may have limited use according to the requirements of short-term projects Once a project has reached its end, the assets may no longer be useful to you On the other hand, other tools may have long-term utility because they can be applied to ongoing projects This should be a key factor in your choice to either purchase or lease

A leasing arrangement may be appropriate when the tools you require quickly outlive their usefulness Rather than being saddled with the assets, along with the responsibility of selling them, a lease provides a helpful escape hatch When you’re planning to use the assets for the foreseeable future, equipment financing may be more appropriate because it grants you ownership of the property

Technological Advances

A lot of industries require companies to upgrade their tools frequently in order to remain competitive For example, banks, commercial printers, and laboratories employ tools that tend to become outdated quickly When they do, they need to be replaced which can require a significant cash outlay

By contrast, other industries use assets that are less susceptible to replacement due to technological advances Restaurants are a prime example; refrigerators, freezers, and grills can last several years without needing to be replaced As a result, restaurant equipment financing is often a better choice than leasing

Impact On Cash Flow

For small and medium-sized businesses, preserving cash flow is a perpetual challenge If your company has rigid cash flow constraints, leasing assets can provide financial breathing room It offers access to the property you need without requiring a significant upfront investment Equipment financing agreements often require a sizable down payment That cash outlay can force you to allocate limited capital that might be better directed elsewhere

Tax Considerations

Equipment financing and leasing arrangements have different tax implications In most cases, your monthly lease payments represent a deductible business expense (which you should factor into the cost of the lease) Tax law treats purchased assets (some types are excluded) based upon a system of graduated deductions Excluded property may be eligible for tax deductions based upon a scale of depreciation You should consult a tax advisor to identify the best route for your circumstances

Finding Flexible Terms

With credit markets remaining constricted, banks have become more vigilant concerning the equipment financing terms they’re willing to offer business owners What’s more, when a loan is extended, it can affect a company’s access to further credit

If your business requires expensive equipment and securing a loan from your bank isn’t a promising solution, it may be time to consider alternatives Many companies specialize in helping other businesses find the equipment financing they need With flexible terms, they can help you preserve your limited cash flow while providing immediate access to the tools your company needs in order to compete Christine O’Kelly is a writer for Landmark Financial Corporation, an industry leader in restaurant equipment financing. They offer professional underwriting services, minimal paperwork, and access to critical investment capital. As specialists in equipment financing, they serve clients in several industries.

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Author : Thomas PrettyLooking at the myriad of business bank accounts available on the market it is often difficult to decide which provides the best service and the most efficient monetary assistance Choosing a business account is a necessary process whenever starting a business, it allows companies to manage their finances effectively and ultimately give monetary control and clarity Unfortunately for many, knowing exactly what to look for in an account is a mystery; hopefully the following article will highlight some of the more important considerations

Many business owners when looking at accounts become transfixed with the interest rates that come with a banking package While interest is an important aspect it should rarely be the most important consideration for business owners More advisable when looking at accounts is to study the charges that are applicable For example, choosing an account with a high rate of interest will normally mean that penalties for going into the overdraft will be greater This is why when at the early stages of starting a business it is advisable to choose an account with lower penalty charges and a lower rate of interest

Some at this stage may wonder why they need business accounts; it is certainly possible to conduct finances without specialist accounts but this is only the case if operating as a sole trader Limited companies are legally required to have business accounts, mainly due to reasons of clarity once tax calculations have to be made Having a dedicated account certainly makes auditing processes easier but is also worth having due to the fact that banks will often offer support, in the way of advice and financial assistance

Accounts come hand in hand with various services created to ease financial processes and make businesses more efficient However it should be remembered that some of the services offered by banks are not always needed When starting a business the main services that will be required are simply withdrawals and pay-ins In the majority of cases using a savings account will be pointless as in the early years of trading it is unlikely that the profits made will warrant a special account to hold them That said, in later years when decent and consistent profits are being made business savings accounts can be advisable

While many may believe that it is the correct course of action is to use the same bank that holds your personal account for business purposes, this is rarely advisable There is an argument that ‘putting all of your eggs in one basket’ is a bad idea This can be considered especially true in these times of economic uncertainty where holding finances in different financial institutions can be advisable

The actual process of opening an account requires a number of different pieces of paperwork Most banks will require companies to produce a business plan, especially if they are going to give the operation financial assistance in the form of a loan Additionally limited companies will need a certificate of incorporation They may also want to see where the start up capital is coming from and will most likely wish to see a list of signatories for the account and the names of the company’s directors

Hopefully this article has provided the key information needed for those opening business accounts With so many considerations to be made it is only through careful planning and comparing the many products on the market that a company can find its ideal financial support Financial expert Thomas Pretty studies the key considerations needed when choosing business bank accounts for start up companies and established operations.

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Author : Uchenna Ani-OkoyeIt should then be obvious that the banks in this country are neither speedy nor generous in giving loans to the beginning or small business entrepreneur Such business people usually ask for loans of longer duration than the banks are willing to grant It is easy to see that in a beginning business, smaller instalment payments will reduce pressure on the borrower, and allow him to put more of the profits back into the business In most cases, these small business owners need much more than the banks are willing to allow without all kinds of guaranteed collateral

And that, of course, is the reason why people needing money for their business success turn to business financing consultants, which provides you the opportunity for success in this field You’ll find that beginning or small business persons are always on the lookout for professional business financing services They always seem to need more money than they have available, and they never seem to get quite the help or satisfaction they seek from the banks The pressing need for more capital is not something that plagues only the beginning or new business

It is an ongoing need in almost every growing business also In fact, the need for a continuing input of new money is a necessary part of the growth cycle of every business Generally, the “little guy”‘ just doesn’t have the extra cash from last year; he does not have the money it takes to set up a stock market program; and he doesn’t have the time to devote to (or he doesn’t want to attempt to “sell” his friends) an investment program in his business

Sometimes these small business people will talk with their accountants, lawyers or stockbrokers and ask them to help in finding people with money to invest Most accountants, lawyers and stockbrokers are in touch with clients who have money they are willing to invest in growing businesses or people with “sure-fire” money-making ideas

Whether these professional people do or do not have special clients with money to invest in special “deals” is of no consequence The important thing is that these people are always being asked by someone if they know of a source of money, or if they know of someone who can locate an investor for them With this in mind, and once you’re set up in business, it will behove you to contact these people - the accountants, lawyers, and stockbrokers in your area - to get to know as many of them as you can, and to leave your business card, so they will be aware of your services

The services you’ll provide:

Generally, the money broker or person operating a business financing service will work with his or her clients in putting the loan application package together in such a way that it will receive favourable consideration by the lender You’ll have the names, addresses and telephone numbers of lenders from all over the world, people and firms interested in investing in all kinds of different business ideas and for virtually any amount of money When you have a complete loan application ready for presentation, you’ll select the lenders or firms interested in that kind of business or investment

Either send or present the loan application package to them One thing is most important: When you present a loan application package to a lender, be sure to have the date and time of your presentation certified by a notary public When you send a loan application to a lender, be sure to certify the mailing of your package with the Post Office Uchenna Ani-Okoye is an internet marketing advisor and co founder of Top Affiliate Programs

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Author : Uchenna Ani-OkoyeWhen you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you’re ready to start looking for investors

As simple as it seems, one of the easiest ways of raising money is by advertising in a newspaper or a national publication featuring such ads Your ad should state the amount of money you want - always ask for more money than you need so you have room for negotiating Your ad should also state the type of business involved (to separate the curious from the truly interested), and the kind of return you’re promising on the investment

Take a page from the party plan merchandisers Set up a party and invite your friends over Explain your business plan, the profit potentials, and how much you need Give them each a copy of your prospectus and ask that they pledge a thousand dollars as a non-participating partner in your business Check with the current tax regulations You may be allowed up to 25 partners in Sub Chapter 5 enterprises, opening the door for anyone to gather a group of friends around himself with something to offer them in return for their assistance in capitalizing his business

You can also issue and sell up to $300,000 worth of stock in your company with out going through the Federal Trade Commission You’ll need the help of an attorney to do this, however, and of course a good tax accountant as well wouldn’t hurt

It’s always a good idea to have an attorney and an accountant help you make up your business prospectus As you explain your plan to them, and ask for their advice, casually ask them if they’d mind letting you know of, or steer your way any potential investors they might happen to meet Do the same with your banker Give him a copy of your prospectus and ask him if he’d look it over and offer any suggestions for improving it, and of course, let you know of any potential investors In either case, it’s always a good idea to let them know you’re willing to pay a “finder’s fee” if you can be directed to the right investor

Professional people such as doctors and dentists are known to have a tendency to join occupational investment groups The next time you talk with your doctor or dentist, give him a prospectus and explain your plan He may want to invest on his own or perhaps set up an appointment for you to talk with the manager of his investment group Either way, you win because when you’re looking for money, it’s essential that you get the word out to as many potential investors as possible

Don’t overlook the possibilities of the Small Business Investment Companies in your area Look them up in your telephone book under “Investment Services ” These companies exist for the sole purpose of lending money to businesses which they feel has a good chance of making money In many instances, they trade their help for a small interest in your company Uchenna Ani-Okoye is an internet marketing advisor and co founder of Top Affiliate Programs

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Author : Susan AtkinsonIf your debts have become so large and unmanageable that you feel like you are in over your head, you might be tempted to file for one of the three types of bankruptcies available to individuals and business owners in the United States After all, that would mean getting all of your creditors off your back so you can start over and build yourself up again Although that could conceivably happen, the process does not often unfold as quickly or as smoothly as you would like In addition,any bankruptcies that you file will stay on your credit record for 7 to 10 years and will make it difficult for you to get loans or credit cards at reasonable interest rates during that period of time In other words you should consider a bankruptcy alternative before committing yourself to such a drastic step

There are several bankruptcy alternatives that can help you pay off your debts while allowing you to maintain a reasonably comfortable lifestyle The first thing you can try to do is negotiate with your creditors You can either do this yourself or hire a professional credit counselor to do it for you Most of the time, you will find that your creditors will be more than happy to accept 75 or 50 cents on the dollar for the amount of your debt because they realize it is better than getting nothing at all

A second bankruptcy alternative that you should consider is refinancing your home When you refinance your home, you are basically getting a new loan to pay off your original one Depending on how much equity you have built up, you might be left with enough cash to settle all of your other outstanding debts In addition, if your new loan has a lower interest rate than your old one, you will probably have lower monthly payments, too There is no question that refinancing your home is a great bankruptcy alternative, so be sure to check out this option thoroughly

Refinancing is wonderful, but that is assuming you own a home If you do not, you will have to continue looking for other bankruptcy alternatives, such as debt consolidation There are lots of consumer credit counseling services that can help you with debt consolidation Instead of paying your creditors directly, you will send a single payment to the credit counseling service and they will divvy up the money to all of the people or organizations you owe The credit counseling service might also offer you the chance to take out a personal loan, which does not have to be secured by collateral Depending on the interest rate, you might consider applying for one If you are approved, you will be able to pay off your high interest credit card debts and save money that way

Another sound bankruptcy alternative would be to downscale as much as possible This means moving into a smaller house or apartment, taking on roommates, driving a less expensive car, selling off any assets that you can part with, etc The more money you can scrape together on your own, the less additional debt you will have to incur in the future

As you can see, there are several sound bankruptcy alternatives for you to choose from Everybody makes financial mistakes from time to time, however, you should not compound your problems by declaring insolvency and blowing off your creditors Instead, choose the bankruptcy alternative that sounds the best for your particular situation and start working to repair your credit now Susan Atkinson writes articles for CanAm College, this article is posted on Money Schooling Submitted By ArticleUnited.com

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