The XBanker
Business Financing eXpert
Archive for the 'Equipment Leasing' Category
Fast Cash For Your Business!
June 10th, 2008
Do you need fast cash for your business? Want a small business loan with no personal guarantee? Are you looking for immediate business financing? Chances are that you answered “yes” to all three of those questions. We all want cash for our business and we want it as soon as possible. Unfortunately, the financing world doesn’t always tell us what we want to hear. If you are properly prepared and have a proven track record (as demonstrated by your revenues and your credit) you can probably get more money - and faster than you think. If you are not prepared … well, you reap what you sow.
Most people don’t start looking for capital for their business until it is too late. “Too late” can mean a lot of things: damaged credit, out-of-line ratios, too short of a time frame, etc. These oversights, plus the procrastinator’s itch for a quick fix, are two of the most common ailments we deal with. I wish every entrepreneur understood this truth: accessing capital is a process.
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Business Financing For Those With Bad Personal Credit
April 24th, 2008
The harsh reality for most business owners is that they can’t escape their personal credit. With the rise of the McBanks, business lending (particularly for loan amounts under $100,000) have become auto-scored and personal credit driven. This is what we lovingly refer to as the Bank Lending Matrix. In this system, you either fit the mold or not. It is even tighter these days due to the mortgage melt-down and irresponsibility of lenders and consumers.So if you have poor personal credit (by bank standards that means a score under 670) you need to forget about bank small business loans until you get your score up. If you need the cash now, you may need to consider bringing on a partner with good personal credit or trying to raise money from investors.I’d prefer to see you get the money you need without giving up equity. So, depending on your borrowing needs and the status of your business, here are some potential solutions for you:
You may just find that you can get all the money you need from one or more of these solutions. Feel free to speak with one of our associates if you have any questions or need help with one of these solutions.
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How Equipment Leasing Can Benefit Your Business
April 16th, 2008
One of the biggest mistakes that I’ve seen entrepreneurs make is to confuse capital and cash. Confusing the two can lead to wasting valuable cash and limiting your business’s potential. I’m a huge believer in using a mix of capital including loans & lines of credit, trade credit, and equipment leasing.
When it comes to financing your business, the name of the game is preserving your cash and limiting your personal exposure. I’m surprised at how many people come to us seeking cash to purchase equipment, vehicles, or machinery for their business. If you have access to cash, the last think you want to do is spend it on equipment. Cash is king, and without it a company can not operate and pay its bills. Just about any piece of equipment can be leased (most of the time with little or no money down!). In most cases, it is the equipment that generates revenue for the business - so the equipment literally pays for itself. All the while, you are still holding your cash and enjoying the tax benefit associated with the lease.
Another advantage to leasing is that it is much easier to obtain approvals than with a bank small business loan or line of credit - because there is a secured asset involved. This also leads to more lenient approval criteria, which means you don’t need perfect personal credit to qualify. In fact, if you’ve properly built your personal credit, you can obtain corporation-only leases with no personal guarantees! There is also a lot of flexibility in payment terms and buyout options. Take advantage of this by customizing the lease to best match your situation and business needs. The process is quick, usually consisting of a one page application and a fast turnaround.
As you consider the capital requirements for your business, keep leasing in mind. Not only can you save money, but you can preserve precious cash for growing your business.
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