Tag Archives: acquisition

Up To $250,000 Financing, Start Ups and Marginal Credit Welcome

If you are looking to start up and/or expand a business, finding capital is always one of the most difficult adventures the entrepreneur will encounter. Two key components to the financing side is the credit qualifications and the amount of money required either to start up and/or expand the operations.

One of the solutions, that I can offer to you in a leveraged world is the concept of leasing. Leasing is an unique opportunity for the individual and/or business to utilize very little front money and acquire financing up to $250,000, application only. An application only means there are no financial statements, income tax returns, personal financial statements and bank statements required. The collateral of the acquisition and your good credit is the key to this approval, no additional collateral is required.

In this equation, you must asking yourself what good credit is, a personal credit score of 680, 700 and maybe 725 or higher. In this imperfect world where the economy is somewhat unstable, this opens up a unique opportunity for dealer financing with small and large U.S lenders. One particular program offers the start up and seasoned business an unique opportunity where the minimal personal credit must be 575 or higher. Wow, are you kidding and no bankruptcies discharged within five years. With an unstable economy and a shrinking labor pool, this offers an unique opportunity for the start up business and the seasoned one as well.

You probably asking what the catch to this is? Really none except this is a dealer financed inventory and you must select the items out of the lender’s inventory. This inventory includes approximately 300 work trucks, trailers, and construction equipment. These items range from basically new to ten years old and all items are reconditioned prior to being re-leased. The front money on these deals, at this time of year, range from 3-5% of the acquisition cost and financing up to 60 months. Wow! All of the dealer financed inventory has residual buyout clauses at the end of their leases from ten to twenty percent, Therefore you can take title to the acquisition. If you don’t have the funds available at the end of the lease, the lender permits you to continue making payments on the residual until it is paid off, so either way you will take title to the item financed.

Examples of what is in the dealer financed inventory: dump trucks, over the road trucks, day cabs, garbage trucks, landscape and grapple trucks, flatbed trailers, dry van and reefer trailers, backhoes, excavators, dozers, forklifts etc…

One of the additional features of this dealer/finance program is that shipping to your location is an additional option for you. The location of the dealership is in the Midwest. The decision that you have is whether you want to fly out and inspect the acquisition and drive it home. The other option is that the dealer can have it shipped to where you live. This additional charge can be financed, however requires some additional front money, the decision is yours whatever is best for you.

In conclusion, whether you are a start up business or a seasoned one, there are many leasing programs available. You should be careful and understand the details behind the lease and the lender requirements. Many banks and lenders also offer repos and off lease commercial vehicles and heavy equipment for lease with advantageous terms. Check it out and find yourself a deal.

Copyright (c) 2008 JM Luna

Lease or Buy – Which Way for Office Equipment Procurement? (Page 1 of 2)

On the subject of how best to acquire office equipment and supplies, for the small to medium sized business enterprise the first step must always be to contact a financial adviser to discuss how best to make the acquisition. In this summary, however, I offer some pointers to outline possible routes to a cost-effctive acquisition. Outright purchase or leasing are broadly speaking, the usual choices, with hire-purchase schemes making a third route to explore.

Purchasing an asset is nearly always the most convenient method of acquisition. However, in some cases, especially for some high-end multifunctional office equipment purchases, purchasing may be seen as impossible because of lack of funds in the current finacial year, or in any case a high cost which discourages those all-important upgrades toward a more efficient, productive business.

However, many companies have found that Leasing becomes a favourable option, if necessary by funding from an agreed budget deficit against under spending in future years. Several options now exist where leasing can provide the best overall value for money.

To expand on this, some different ways of obtaining higher-cost equipment are outlined below. This is a brief summary only, designed to assist with conversations with suppliers or with internal finance departments.

Office Equipment Leasing vs. Hiring or Rental

The Equipment Leasing Association defines a lease as “A contract between lessor and lessee for hire of a specific asset selected from a manufacturer or vendor of such assets by lessee”. In this scenario, ownership stays with the lessor. The lessee has possession and use of the goods over a period on payment of the specified rentals.

This system is different from hiring (including rental and contract hire). Hiring requires the user to select from specialised stock already held by the hiring organisation which usually charges a fixed tariff. Leasing enables the user to select the goods from a manufacturer or other supplier of the required goods.

A lease is negotiated usually on terms specific to the deal, with the lessor. The lessor acquires the goods chosen by the lessee. Uniquely, this can allow the lessee to use the goods by making payments out of revenue. Office equipment (including photocopiers and fax machines) and furniture, cars and commercial vehicles, computers, machine tools, laboratory equipment and contractors’ plant are allcandidates for leasing.

Some Advantages of Leasing:

– All costs are fixed in advance, so budgeting is exact – Goods cannot be wihdrawn once the contract is signed (as long as agreed conditions are complied with. – Removes the need to tie up capital. – Allowances, depreciation and other calculations are not required – Leasing is simply about the rental cost. – Leasing releases capital which may not be available elsewhere. – Leasing is inflation-proof as payments are made out of future funds, in fixed money terms. Hence real costs fall against any inflation. – Possibility of immediate use of cost-saving equipment.