Tag Archives: equipment
Trends in Financing Your Business In 2010
Business trends change over the years and for people who run businesses, being aware of those changes is an important factor to survive the market. In the following paragraphs, we will take a look at the developments in financing a business for the year 2010.
Angel Investment
Angel investors can be individuals or groups in search for promising business ventures. Angel Investors started to become a favorite financing option in the late 90s and since that time, has went on to be one of the most highly regarded methods of business financing, especially with small enterprises.
Equipment lease financing
Equipment leasing has become the most recommended methods for business financing not just for small enterprises but for large and established companies as well. Through equipment leasing, a small working capital doesn’t need to be a major barrier in delivering those brilliant business ideas to reality. Business equipment lease is paid in installment so the business owner gets the chance to acquire all equipment needed for the operations without a great deal of upfront cost.
Supplier Credit
A number of wholesale vendors provide credit lines to their small business customers particularly if they can present an outstanding credit history. Be sure to check out prospective vendors who can provide you with your needed supplies and if you can be extended a credit line.
SBA Loan Programs
For business owners who are having trouble acquiring a business loan from banks or commercial lending companies, they can get support from the Small Business Administration (SBA). By being guaranteed by the SBA, it will be easier to get approved for small business financing. Nevertheless, remember that the SBA has its own requirements in approving small business loan applications. Check from the SBAs website for the prerequisites in applying for a small business loan.
Business Credit Cards
At present, a growing number of business owners are realizing the benefits of using small business credit cards. As opposed to using their personal credit cards for business expenses, entrepreneurs are making use of business credit cards to separate their personal and business finances. Business credit cards are also perfect tools in building business credit history. Over time, maintaining an impressive business credit rating will be a major advantage in the future development of a business and one of the simplest strategies to build credit is by using a credit card for business.
Bank Business Loans
Despite the emergence of fast loans, a lot of small business enterprisers still favor the traditional approach to business financing. The reason for this is that banking institutions generally provide a bigger amount of funding and when matched up against other types of loans, a bank loan is still more reliable. For business owners who are willing to use their homes as collateral, a secured small business loan gives them the opportunity to obtain the financial assistance they need for starting a business. Secured business loans are known to have lower interest rates and longer repayment period compared to unsecured business loans.
Equipment Lease In Australia
There are many choices in commercial equipment finance in Australia. A preference today can be to enter an equipment lease contract. A Car lease and equipment leasing are more or less similar to each other. If the business survives and flourishes, the company will always have the option of buying the equipment once they are done with the loan. However, there are certain basic points that one must always keep in mind while entering equipment lease contracts.
When it comes to equipment leasing, your responsibilities will be a lot more than the leaser, whose responsibilities end with his just signing the contract. You must make sure that you will successfully be able to fulfill all your responsibilities, as from then on, you will have to do almost everything starting from taking good care of the equipment, paying the lease contract every month, and even the insurance and rental fees on certain occasions.
If you are a company the directors might also be required to be guarantor when it comes to the equipment lease contract. This is done by the leasing companies in order to ensure the safety of the equipment being leased out. In case any damage is done to the equipment or the loan is not repaid, the guarantor will also be answerable to them in that case.
As long as you are in charge of the machinery, expenses will not at all be incurred on the part of the real owner. That is why equipment lease contracts are also called triple-net contracts, since the consumer has to undertake the responsibilities of equipment maintenance, liability and casualty insurances and the payment of taxes associated to it.
When the hell-or-high water clause is present on the lease contract, it means the consumer is bound to pay the rent as long as the lease lasts, irrespective of any kind of external event that affects either the equipment or the contract itself. If there are any claims to be made against the leasing company, it is regarded as something for which legal steps need to be taken separately.
Once the equipment lease contracts end, normally the lease agreement asks to buy the equipment at the residual One can also renew the contract. However, establishment fees can be charged and is subject to the lenders approval.