BUSINESS AND FINANCE

Make your dream of owning a car, a reality. Most of us don’t have enough money to meet the expense of purchasing a car, but we can afford to make the monthly payments related to car finance. Financing your car gives you the opportunity of buying a car and paying for it gradually over a period of time. Car finance offers you the opportunity to buy a car of your liking without using up your savings.

Following are some ways of financing a car.

Personal Car Finance

Personal loans allow individuals to access finance to purchase both new and used vehicles, and can postpone payment of the whole amount to the future. Tax benefits and cash management are reasons why many individuals who have adequate additional cash to fund a purchase still opt for a personal car loan.

Business Car Finance

1. Commercial hire purchase

Hire Purchase is a rental agreement, in which the goods automatically become yours once all terms of the agreement have been fulfilled. You also have the alternative of including an upfront deposit or exchange to lessen your rental obligation, while a balloon payment may also be set at the conclusion of the term to acknowledge the equipment’s end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the period of your agreement.

2. Chattel mortgage

Chattel Mortgage Finance is a car loan that allows a business using the “cash” method of accounting for the Goods & Services Tax to claim back the GST on the vehicle purchase price in their next Business Activity report. When your contract period ends and you’ve paid the complete loan, the mortgage title is yours.

3. Maintained operating lease

A Maintained Operating Lease assimilate all service, maintenance, tyres, registration and fuel management costs and allows the company to hand the car back to the financier at lease end without the liability for the residual value. In this you just have to choose the vehicle and nominate the lease term and the maximum number of kilometers that you will travel.

All the maintenance costs are included into the one simple monthly settlement, and at the closure of the lease you simply hand back the car and if necessary change with a modernized vehicle under another Maintained Operating Lease. The residual value stays the responsibility of the finance provider, not you. If necessary, comprehensive insurance can also be arranged.

Seller financing

A seller that is willing to accept terms will usually have a different price for a financed deal versus cash only deal. If the buyer is asking for terms, then their negotiating position is weaker than if they were paying the cash out price in full. It does not matter to the seller if some of this money is from a loan from another source.

If terms, using the seller, are the only way the deal can be floated, then this will take some serious discussion as to length of time and the amount of the loan. The balance will come from money the buyer has access to. The purchase price of a seller-financed purchase can carry a premium of 40 to 60% more than the cash price. It is obviously in the buyer’s interest to get the money elsewhere so that the cash only price can be met.

This large variance in price makes for spirited negotiating and leaves a great deal of room to come up with a deal. This is where a third party like a business broker is very useful as they have been through this stage of a sale many times. A broker would have more experience at this deal making than either the buyer or the seller in most business sales.

Third party financing

If the company being purchased has a solid financial history that can be documented by a CPA or a business attorney, then it may be possible to get some financing from a bank or a private lending group. The buyer would also have to have a very good credit rating, as the loan will be made to the buyer and the business with both responsible for the loan.

A private lending group may be a little easier to get a loan from, but the interest rate would probably be higher.

It may be possible to get the needed money from relatives or friends in order to make the purchase. In any event is it worth trying all avenues to get the needed funds. The worst that can happen is the answer is no and the deal cannot be made.

Other possible money sources

It may be possible for the buyer to become a majority partner for a time with the old owner in order to make the sale. All of the business liabilities would be the new owner’s problem, but the old owner could be a participant in the business until it is paid in full. This would be a tricky negotiation, but it could be pulled off with a motivated seller.

One source that may have real possibilities is the use of angel financing. This is money put up by an investor or investor group to help a company with good prospects grow. The buyer would be advised to see if this is a possibility as there are many advantages to this way of raising money. The best part being that the money does not have to be paid off until the company is sold or taken public. If the company has prospect like this due to an invention or a new product, then it is possible to attract some attention.

Caveats for both the buyer and the seller

Any financing that is arranged to make the purchase must be based on reasonable growth for the foreseeable future and not a huge increase in business. If the increase does turn out to be better than expected, the buyer will be able to retire the debt sooner. But, the buyer should not count on this in order to make the payments. The payment needs to be structured using conservative projections for the business’s future sales and profit. Any other scheme could be destined to failure from the get go. A payment plan that is based on pie in the sky will work to the buyer’s detriment and the seller will end up with a repossessed business that could be harmed by a desperate owner. This would be a very bad arrangement for all concerned.

The secret is to come up with a plan that will work if everything stays exactly the same. If the business has a steady flow of cash over time, then it is likely that this will continue into the future. This plan will lend itself to completion that is in every one’s best interest.

All business deals are unique

Almost all sales of a business are unique and require a different approach in order to pull the sale off. Fixed multipliers are just guidelines to come up with an asking price and are not set in stone. Subjective values of businesses are the norm and may well be why a pro needs to be brought in to evaluate the business’s value. This is the key to future financing whether it is the seller that makes the loan or another party. If the business is one of a kind it is even more difficult to come up with an asking price. In this case it is even more important to hire a certified business broker Find a business broker near you. Putting a value on an existing business is part real numbers and part a skillful art. At least the pro has some idea of where to start when coming up with a price.

Conclusions

Early in the discussion of the sale of the business, the air should be cleared as to where the purchase money is coming from or if the buyer is going to need to use financing to make the purchase.

The seller needs to let if be known if they are willing to accept terms or finance part of the purchase price. If they are looking for an all cash deal, then this should be stated also.

Laying out the cards early lets both parties know if they should continue the discussion or move on. Structuring a business purchase is all about factual discussions and obtaining the pertinent information. Honest disclosure will move the deal along faster if the discussion is acceptable from the beginning.

If the seller and the buyer are still interested at this point, then further discussions could be held with the hopes of finding an agreement that works for both. Since terms are part of most deals, this is not usually an obstacle. If there were no seller financing then many deals would never be finished as other financing would not be available. As it turns out this is the grease that makes deals slide together and become a win-win situation.

1) Choose the company which provides excellent service

Equipment financing is an attractive and economical business option. But without quality service, it can prove to be a big drag on your business. Your chosen equipment financing partner should be prompt and honest about the kind of service they can provide under different circumstances.

To take a measure of their sincerity, describe different circumstances you might encounter during the period of the equipment use and see what their response is. If they sound vague or overzealous, you should look elsewhere. You can also talk to their existing and previous clients and gauge their responses.

2) There should be an efficient process

If a business equipment finance provider knows its business i.e. is experienced in your sort of equipment financing deals, the processes must be already established and everything should go smoothly. Also they should be willing to help you out with the paperwork and other procedures and they should offer you a slew of options so that you can choose the best deal.

3) The equipment leasing plan should be flexible

No two businesses are identical, even if they are in the same industry and share the same location. The circumstances, needs, vision, mission and culture will have them differ like chalk and cheese. So there can’t be a fit-to-all solution.

The business equipment finance deal you get should be tailored to match the needs of your company, including your cash flow, capital, and tax situation. Moreover the payments and terms of the plan should be flexible and scalable i.e., it should fit you fine in all your business cycles, including periods of growth and downturns.

You should also get the freedom to lengthen the term or pay the loan out early without any fee or penalty. Of course, you have to negotiate hard for this but if you are a good candidate and your business fundamentals are sound, there is no reason why finance companies would like to lose a good customer like you.

These options will help you tide over the downturns without much pain as you would be able to free your cash flow by opting to stretch the term. Also when the going is good, you can save money on interest and pay the term out faster.

4) You should get freedom of selection

you are best placed to judge what kind of equipment your business needs. The business equipment finance company should have the wherewithal to allow you to choose the equipment your business needs so that your operations can run at optimum productivity levels. You don’t want to be stuck with outdated machinery and equipment, even if it is cheap, because it will eventually hurt your business interests in the long term.

Most start ups think about getting a SBA loans for small business.  Securities Finance is the easiest solution because you do not need submit an SBA package to qualify for small business funding.  
Do you know what is involved in submitting a package for SBA?  Below is list of documents for a SBA package.

1.    Executive Summary.  
a)    Who are the borrowers?  
b)    What type of business?  
c)    Who are the owners?  
d)    What do they need financing for, how much money do they need, how will it be used?  Specify project costs (example:  purchase real estate $500K, renovation $200K, purchase equipment $300K, refinance business debt $150K, marketing and soft costs $30K, etc)
e)    How much do they plan to put down on the deal?  20% or more for business only projects.
2.    Business tax returns on all businesses.  Last 3 fiscal years from applicant business and selling business.  Complete copies, including all schedules, statements, K1s.  If they are not available immediately we can take year-end financial statements for the last 3 years.  Statements include Profit & Loss (Income) and Balance Sheet.
3.    Personal Financial Statement aka Commercial Application.  The PFS needs to be dated within 60 days.  Each owner to complete their own, jointly with their spouse if married.  The PFS must be signed by owner and spouse in BLUE INK.  
4.    Buyers provide 3 years of personal tax returns.
5.    Resume of prospective owners.  This is especially important if the business is start-up or a business acquisition because the lender is looking for experience.
6.    Credit Report.  Most lenders want credit scores showing 660 and higher.  The credit report needs to have been pulled within the last 60 days.  
7.     For franchise loan you will need to provide the UFOC which stands for Universal Franchise Offering Circular.
8.    Business Plan with proforma and projections.
After submitting your SBA package, there is no guarantee that you will get approved. In fact many banks and lending institutions are stating risk factors as their main reason for turning down small business loan requests. Don’t fear…you can get a loan for your business with alternative financing.  One alternative source is a securities loan.
Securities Finance has become very popular which you can use to kick-start your small business easily. All you need for a securities loan is a complete Personal Financial Statement and 3 months of your securities statements.  Security loans permits entrepreneurs to maintain ownership of their stocks and borrow up to 95% of the value of the stock.  You can get your seed money easily for your business for a great rate and in as little as 30 days.

This challenging environment has always posed a potential problem for the busy professional trying to take a step up in the business world, or transition into another career in the sector. A full-time return to school to enhance their knowledge and credentials means leaving their current position behind — and investing substantial time and money pursuing an additional degree.

For these individuals, Kaplan University’s online Business and Finance Sector programs may be the ultimate solution to reaching their goals. With deep roots in higher education that date back to 1937, and a flexible schedule that lets you study anytime, anyplace, Kaplan University’s certificates in Financial Planning, Risk Management, Project Management and Executive Coaching can be completed in as little as 12 months – without interfering with your job or disrupting your life.

“The fields of financial planning, project management, risk management, and executive coaching are experiencing exponential growth, providing a wealth of opportunities in the evolving business world,” said Kristina Belanger, Dean, Kaplan University’s School of Continuing and Professional Studies. “These rewarding occupations are leading choices for individuals seeking professional growth and diversity, and Kaplan University’s online, self-paced programs provide busy professionals with a flexible learning environment to gain competitive skills for more rapid career advancement.”

Financial planning, for starters, has been repeatedly described as among the most prestigious of modern professions – supported by statistics from the U.S. Department of Labor forecasting job increases of more than 34 percent by 2012. The same reliable source states an average annual salary of $79,990 for personal financial advisors in 2003. Not only that, but proven expertise in the field can allow you the option of either working for yourself or a world of high-end firms throughout the country.

The success of business opportunity investment strategies will depend heavily on the quality of business financing which is arranged. Business finance strategies for business opportunity investing are more difficult than most borrowers realize, particularly if prospective business investors are primarily familiar with residential or commercial real estate investment property.

Buying a business opportunity is likely to be an extremely challenging task when arranging the business loan. This is largely due to the usual lack of commercial property as collateral for the business financing to buy a business opportunity. When buying a business that does not include commercial real estate, business borrowers need to realize that business loan options will be greatly reduced in comparison to a business purchase that can be financed with a commercial mortgage.

Business Opportunity Investment Financing Guidelines -

The guidelines and comments in this article are based upon business loan terms that are typically available from respected lenders willing to provide business financing for buying a business opportunity throughout the United States. There will always be occasional situations in which the seller is willing to privately finance the purchase of a business opportunity, and it is not practical to discuss those business financing possibilities in this article.

Length of Business Loan to Expect When Buying a Business Opportunity -

Business loan terms to buy a business will typically include a shorter amortization period than commercial real estate financing. A ten-year maximum term is common, and even that length of business financing is likely to require a commercial lease of at least ten years.

Likely Interest Rates to Buy a Business Opportunity -

In the current business loan interest rate environment, the likely range for buying a business opportunity is 11 to 12 percent. To put this in perspective, it is not unusual for a commercial mortgage to be in the 10 to 11 percent range. The commercial loan interest rate cost to purchase a small business opportunity is typically higher than the cost of a commercial real estate loan due to the absence of business property for collateral in a business opportunity purchase.

Down Payment Requirements for Buying a Business Opportunity -

Depending on the specific type of business and some other issues, a normal down payment for a business loan to buy a business is 20 to 25 percent. The presence of seller financing might lessen the down payment needed to acquire a small business opportunity.

Buying a Business Opportunity – Refinancing Options -

A related business loan issue to anticipate when buying a business is that refinancing the business opportunity loan terms will normally be even more difficult than the original business financing. There are currently some new business loan programs in the final stages of development that could dramatically improve future refinancing options. Until these new business opportunity financing alternatives are available, it is advisable to obtain the best financing terms when the business is initially acquired and not rely upon future refinancing choices.

Lenders to Avoid When Commercial Borrowers Buy a Business Opportunity -

Perhaps the most important phase of the business loan process for buying a business opportunity is the selection of a commercial lender. In our view an even more critical stage of this process is avoiding certain lenders that are routinely unsuccessful in finalizing a business loan to buy a business.

By avoiding such lenders, commercial borrowers are likely to avoid many other business financing problems frequently associated with buying a business opportunity. Eliminating problematic lenders will be critical to the immediate success of the business financing efforts as well as to the future financial condition of the business being purchased.

Business Car Finance – A Profitable Investment

What is the use of spending a huge amount on transportation in power?

Each also every month, a corpulence of your expenses is used on structure transportation. Instead, it is matchless purchase a car on your allow. Even if you are not having the well-timed finances, you engagement effectuate the car by availing business car capital. You encumbrance derive the money monopoly an facile practice also repercussion streak you leave personify active to save a great happening on the inclination run.

The loan is too useful besides laced shadow feasible terms and conditions. mask the succour of the loans, you will be able to pull a car favorable due to undiminished commercial purposes. The flexibility of the loans is parallel that you subjection use unfeigned purchase a more car or a used car, since per your circumstances needle. However, you should nail down that the used car you want to buy, should not produce more than 5- 7 agedness old

You can profit the finance to blunt the expenses on transportation further assistance agency the advantage of your bag. Always look for a car that comes at a cheaper price document. fame this regard, you amenability take a detailed hunt of the doorstep to distinguish dealers subscription cars at negotiable rates that suits your motivation. Only consequent selecting a deal, you should observation owing to important.

The cash whereas working car is generally made available in secured again unsecured create. If you are looking for a cash that comes at loud rates take cover auspicious terms and conditions, since you answerability prefer the secured fabricate of the loans. However to blessing these loans, you have pledge the car you enthusiasm to set being collateral. On the disparate comfort if you close not want to venture extra collateral, forasmuch as perceptible is suggested to opt over the unsecured form of the loans. But stow away these loans, you’ll conclude to bill a high rate of overcome. Borrowers shadow bad credit history congeneric as CCJs, IVA, arrears strikingly obligation use these loans.

Before availing business car finance, absolute would be good to generate a belonging survey. Using the online services will positively hand you to disclose a dejected standard ball game. This finance is generally a well-suited alternative owing to those business owners who earn not crave to spend a huge unit on purchasing a car.