Equipment Sale And Leaseback Turns Assets Iinto Cash

There is a new approach for any business owner of any size to raise quick capital. Get up to 70% of the original purchase price against equipment you own. Even more, the money received can be used for any purpose whatsoever. No restrictions.

Equipment sale leasebacks, what are they?

The sale of an asset for cash while the asset remains on the seller’s property with a contract to lease the asset back from the source purchasing the asset.

Why would I use my equipment to get working capital?

◦Get up to 70% of the purchase price against existing equipment you own

◦The equipment stays on your property

◦You can write the monthly payments off up to 100%

◦No interruption in the use of the equipment

◦No restrictions on how the money is used

◦No other collateral needed

◦Does not interfere with your credit lines at the bank

Accounts Receivable Financing

Accounts Receivable Financing- The Fine Art of Happiness explores the history of factoring; it offers suggestions, questions and answers to the question of whether or not accounts receivable financing will bring you and your business happiness and success.

merchants happy? Because they would be paid for their merchandise many months before payment for their merchandise was received. With this cash in hand, suppliers, employees and Imperial taxing authorities could be paid. These financing agreements were based on long term relationships and trust.

Two hundred years ago accounts receivable financing evolved in the United States of America, primarily for the textile industry, for the same reason: to accelerate growth and profitability by accelerating cash flow. Again, long term relationships and trust were the main basis for these financing arrangements because there was no effective court system to enforce international contracts for the purchase of European fabrics for American factories.

Thirty years ago the concept of accounts receivable financing, or factoring, was considered to be on the fringes of respectable financing for products or services other than textiles. It was considered radical to finance the accounts receivable of relatively high risk businesses. Since then accounts receivable financing has evolved into a multi-billion dollar industry. Long term relationships and trust are still very important because when you utilize accounts receivable financing you are entrusting a commercial finance company with the lifeblood of your business- your cash flow.

Let’s make some assumptions. The purpose of life is to be happy. As a business owner, you are happier if your customers pay immediately when they receive your invoice as opposed to many months later. As a business owner, you are happier if you are more profitable when you are selling more goods or services at greater profits.

Accounts receivable financing may be the enabling tool for more capacity, more flexibility, more fluidity, more efficiency, and more sales if you have to give credit terms to your customers and your internal cash flow, or bank financing will not keep up with you need for cash to grow. So you need to ask yourself, are you happy with the status quo? Do you feel like you are stuck because your capital expenditures and operational costs are too high? In the life of your business, do you feel like you are being held back from succeeding- like receiving the “Do not Pass go, do not Collect $200” card from the game, Monopoly?Here are some questions to ask yourself regarding overcoming obstacles to your happiness and success: What is your market? Is it local, national and/or international? What are your short term and long term challenges? What is your customer base? What is your company sales and distribution strategy? What is your strategy for accelerating growth, market presence and penetration? Do you have strong gross margins with additional opportunities to drive operating efficiencies as you business scales upward? Will you realize increasing margins as a result of increasing sales? Query: could your business be expanded exponentially if you had virtually unlimited financing? Is this a reasonable goal and would this make you happy? You need to evaluate the cost-effectiveness of accounts receivable financing versus the scalability and capability of your own company. Accounts receivable financing may be your solution to the fine art of happiness and your success as a business owner.

Government Loans For Beginners

Government loans are those that the government of a country provides to the citizens of that country in order to fulfill there needs and for their uplfitment or betterment. This helps in reducing the wide gap between the rich and the poor and streamlines the economy of the country. Government loans almost are for all sorts of purposes like education loan, loan for purchasing a house- home loan, loan for setting a business- SBA- Small Business Loan, purchasing a car, heavy machine etc.

Government loans are broadly divided into two categories- VA and FHA. The former i.e. VA loans are quite beneficial for they require no down payment and mortgage insurance. They are under the sponsorship of the Veterans Administration from where the name is derived. These loans are provided at fixed rates which are not subject to modification. VA loans are meant only for qualified veterans and not to the rest of the public.
FHA loans can be given to any qualified person who wants it. They need a little extensive paper work and are most often opted by those who seek to purchase multi family properties since they have a seemingly low down payment.

If we do a comparative analysis of the loans provided by the private companies and banks and those provided by the government, the latter outweighs the former in many respects. The sole motive behind a private bank or company’s lending money to people is to earn profits or to accumulate more wealth. But the government works for the noble cause of benefit of its citizens. It does not seek to fulfill any private purpose but the whole idea is to strengthen the country’s economy.

It is not that the government unlike any other private company giving loan has no criteria or a set of parameters to adjudicate who all are eligible for the loan they apply for. But this criterion is often a mild one. Government at times gives loan to even those who do not have the potential to repay it. Not just this but in case of any natural calamity or disaster if those who have taken the loan become inefficient to pay it back, the government simply excuses the loan amount.

As compared to the private banks and companies the rate of interest at which the government loans are offered are significantly low. Moreover the government can provide large amount of loan for a considerable period of time. This enables one to have relatively small monthly installments and more security. Private companies in order to make large profits usually charge high rates of interests from their customers. They lure the customers by promising of instant delivery of loan amount at their doorstep and with least documentation. The government loans generally require more documents but that should not undermine their benefits. While going for any government loan the best one can do to avoid running around is to opt for a well qualified agent. These agents do all the official work (like collecting documents, checking and submitting them) by going from one office to another. The finest part is that they are not too expensive and provide you with sufficient knowledge, guidance and service at your ease.

Thus make a prudent choice, take loans through government. They can be of tremendous help since the government is always meant for the welfare of public.