Small Business Finance Site

Business Equipment Finance ? 4 Tips on How to Find the Right Provider

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.

Loans for Small Business-Securities Finance is the Easiest Solution

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.

Become a Certified Success in the World of Business and Finance

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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.

Business Loan Investment Solutions – Business Opportunity Finance

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.