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Sale and Leaseback Financing
Sale and Leaseback Financing – What is it?
A sale and leaseback financing transaction is where the company sells it free and clear assets and leases it back simultaneously. These transactions can range anywhere from $50,000 to $6,000,000. This article will encompass the following types of industries and discuss its particulars:
Construction equipment,manufacturing equipment, production equipment, yellow iron, dump trucks and trailers, agricultural and farm equipment, and other heavy equipment
Many seasoned lenders have come up with many industries standards to make the available credit pretty much standard. The first area that the lender will consider is the the value of the free and clear asset that is going to be sold and leased back. Each lender’s formula is somewhat similar but they usually value the acquired asset somewhere between 50%-70% of the auction value. This auction value will come from trade publications and other standards in the industry for these particular assets.
Once the auction value of the asset and/or assets is established, the lender will look at the applicant’s credit. Some lenders will consider the credit irrelevant as they focus on the auction value of the asset. Other lenders will obtain the credit and grade them according. These lenders will come up with a score and give the applicants different lending rates depending upon their credit and the asset involved.
The lender will lease these bought assets anywhere from 24-85 months back to the applicant. Additionally, the lender will offer residual buyout clauses anywhere from 25% residual to fair market value of the asset at the end of the lease. This will keep the applicant’s monthly payment as low as possible.
Sale and Leaseback Financing – What is Required? Usually, what is required from the applicant is:
Personal financial statements, a lease application, a summary telling about the deal and its particulars, and a detailed equipment list, identifying the assets to sold and leased back Obviously – bills of sale and title work will have to be performed by the lender.
The proceeds of the these funds can be used for working capital, debt re-structuring, equipment acquisitions, and paying off judgements and other liens.
Sale and Leaseback Financing – Unique Features Some other unique features of the sales and leaseback program is that usually these transactions are:
Non-bankable type transactions, home ownership isn’t required, and poor credit isn’t an issue!
In conclusion, we suggest you shop around for the best deal for yourself and understand all the particulars of the transaction. Hopefully, this article about “Sales and Leaseback” financing assists you with your decision making.
Economic Payday Loans (Page 1 of 2)
We`ve all found ourselves low on funds at the end of any given month. The money we earn sometimes doesn`t cover all the bills that might come in, especially if there was an unexpected expense such as a car repair or an illness. Even with working hard and being thrifty, sometimes the money just can`t be stretched out any further. A payday loan can be somewhat of a safety valve and an alternative to borrowing money from family and friends.
A payday loan is a short term unsecured consumer loan. You do need to be working full time and have a bank account to apply for one. Usually the amount borrowed is a relatively small amount – between $100 to $500. It`s up to the consumer to shop around and get as much information as they possibly can before applying for this type of loan. There are definitely some pros and cons here, but the more informed your choice is, the better the end result will be.
First it`s absolutely necessary to find out about the lending institution and how long they`ve been in business. It`s wise to begin with the better known lenders. You will need to consider the fees and terms of this loan and just compare the rates among several lenders. The fees charged for these loans is usually a percentage of the amount you borrow, which is why you need to get the best one you can find. This fee has to by law be disclosed to you ahead of time. If a lender isn`t up front about either the fees or the terms, rule them out right away. This applies to whether you are looking online or in person. Before you sign or agree to anything, find out if the interest rate would change should you want to or be able to pay the loan back early. Some firms offer rebates for paying the loan back before the due date.
Another important fact to find out about are any additional fees should you require an extension for the loan. The typical term for payday loans ranges from 5 to 30 days and usually coincides with your next payday. It`s best to borrow the least amount you possibly can to save on fees and to make repayment easier. Shopping and applying for these loans online makes the whole process a bit faster.
As a smart shopper, you should also know that payday loans aren`t the only way to get quick needed cash advances. There are salary advances, credit card advances (though theses tend to have very high fees), and working out some kind of repayment plan for the bills you owe on is also an option. Secured credit cards can be a good way to go. They are tied to your savings account and so they usually have a much lower interest rate than regular credit card cash advances. You might also consider religious institutions or social service agencies. They are there to help and might be a good resource to tap into. It will just take a little research on your part.
Also, most creditors will negotiate partial payments once you establish a repayment plan with them.This will allow you some extra time to pay off your bills without the stress of having to come up with a lump sum. There are also emergency assistance programs and community organizations which are sometimes partnered with social service or state agencies. They have programs set up to help with home heating and cooling costs for households that qualify. Life is expensive and no family should have to be cold in their own home, nor should they suffer during the hottest summer months without any relief.