Aug
12
2019

Business Financing Solutions – Equipment Leasing and Used Equipment Financing

To run a company efficiently, it is crucial to have complete access to the supplies and equipment needed to successfully compete within an industry. A trucking company will fail without trucks, a retail sales business needs computers for inventory and registers to assist consumers in making a purchase, and a dentist’s office cannot effectively provide dental procedures to patients without the right specialized dental equipment.

While businesses need the proper equipment to function and compete within an industry, many businesses do not have the funding to fork over thousands of dollars to purchase these crucial pieces. Many businesses do not realize there is a solution for acquiring new equipment or for replacing outdated equipment through leasing. By taking advantage of equipment leasing, companies can get the supplies they need, even if they do not have the funds to purchase them outright.

The Advantages Of Leasing Equipment

There are many advantages to equipment leasing. The following three benefits in particular show how leasing can make more sense than buying. First, many leasing companies offer fast approvals, allowing a business to get the equipment they need quick. Second, leasing provides businesses with beneficial stepped payment plans, custom and flexible terms, and seasonal schedules.

Lastly, there is much less paperwork with equipment leasing. Typically, a business only needs to fill out a short application to get the process started. Most companies that lease equipment directly review and approve applications, so there is no need to sit and wait by the phone for a credit approval company to give the thumbs up. Equipment leasing companies do not have to follow the same regulations required of banks. That means businesses will most often receive competitive rates that will not bust their budget.

Any company requiring the purchase of expensive equipment should consider the benefits and cost effectiveness of equipment leasing.

The Advantages Of Financing Used Equipment

Another option for businesses interested in equipment leasing is used equipment financing. Businesses who cannot function without necessary specialty equipment, but who have a problem financing due to limited cash flow, should consider financing solutions. Used equipment financing offers businesses a way to purchase the high quality equipment needed on a budget.

Used equipment financing is provided for businesses in a large list of industries, including seasonal, recreational, transportation, restaurant, landscaping, office, computer, industrial, construction, and more. Through used equipment financing, businesses short on cash can still purchase the equipment needed but avoid the high cost of new equipment. New companies often have a hard time obtaining financing simply because they are a new company. By purchasing used equipment through a financing company, a business can still startup with quality equipment while avoiding the debt often brought on by purchasing new equipment.

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Aug
05
2019

Finance Solutions For Companies Venturing In The Import Industry

Importing pertains to the process of bringing in goods or services from another country. They come from foreign countries and are usually brought in for resale. Many companies find this type of business quite attractive since the products or services from other countries are really affordable and they can be resold for a nice profit margin.

Although the process of importing and reselling goods seems like a simple concept, entrepreneurs who are considering starting this kind of business will have to overcome various hurdles. One of these is finding the right financing solution.

At present, there are various finance solutions or methods you can choose from. The most recommended one by finance experts are:

Factoring in accounts receivables.

Also known as asset-based loans, this method involves selling your credit accounts or accounts receivable to a bank, lending company, or other financing institution. Accounts receivables are usually sold at a discount, between 80-90% of the face value of your credit accounts. An advance payment will be given to you by the factoring company, about of 2-3%, for the accounts you would normally have to wait on for payment.

Purchase order financing.

This method has similarities with asset-based loans. The main difference with this financing solution is that you take your invoices or purchase orders and assign or sell them to a financing company. This company will then assume the risk and the task of billing and collecting. When the goods are produced, the financing company collects the payment from the customers, takes its cut of the proceeds, and pays you the profit. This option is highly recommended if your profit margin is high enough on the goods you are importing. Having a good and reliable supply chain and creditworthy customers are important factors to consider as well.

Inventory financing.

Although inventory financing is an expensive solution, it is still a highly effective way of financing an importing business. Under this method, you will have to use your present inventory to secure a loan that will permit you to buy the imported goods your customers want or need. Because of this, you can effectively increase your inventory without impacting your cash flow. However, with this option, it is crucial to make sure that you can service or repay your debt. Inventory financing comes in three types: blanket inventory lien, floor planning, and field warehousing. Choose the type that best meets your requirements.

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