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Leasing Equipment: What Trucking Fleet Owners Need to Know

Whether your trucking fleet has a dozen or a hundred trucks in it, those machines are an invaluable asset for your company. They enable you to live up to your service promises and drive your business toward prosperity. However, when your old trucks need constant repair or you want to expand, you can find yourself facing a serious financial burden. You might want to consider leasing equipment instead of buying it. Here is what you need to know about leasing equipment:

A Smaller Down Payment Is Required

When you buy equipment, especially big-ticket items like a fleet of semi-trucks, lenders often expect a large down payment — up to 25 percent in some cases. This can put a damper on your cash flow and make it more difficult to meet your existing financial obligations.

When you lease your new trucks, or whatever other equipment you have your eye on, you can expect to be required to give little or no down payment. This frees up your cash flow and frees you from the pressure of having to make a large initial payment on your new assets.

The Monthly Payments Are Smaller, Too

 Leasing equipment often comes with significantly smaller payments than if you bought and financed the equipment. Your monthly budget will be easier to manage.

If your business has poor to mediocre credit, the nature of a lease with its smaller payments may make you more likely to be approved for your new equipment.

Leasing Makes It Easier to Update

How is your old fleet of trucks doing? Maybe they need constant repairs. When this happens, it can slow down your deliveries and make you feel like you’re being nickeled and dimed to death. You might want to invest in new vehicles, but you hesitate to go through the troublesome process of selling your old equipment.

With a lease, you do not own your trucks. Therefore, when the lease ends, it is a breeze to update. Your drivers will have the latest and most efficient models at their disposal.

Other Advantages of Leasing

Leasing equipment comes with other advantages as well. For example, it may even be able to help you when the time comes to file your taxes. You can usually treat your lease payments as pre-tax business expenses so you’ll end up owing less to Uncle Sam.

Another perk of leasing is that since you won’t use existing bank credit for it, you keep your credit lines open. You’ll have something to fall back on it if necessary.

 Is it time to give your fleet a new shine? Why not give leasing a try?

Why Small Businesses Benefit From Leasing Manufacturing Equipment

Many small businesses struggle with cash flow from time to time. However, some business owners know that leasing manufacturing equipment is one of the best ways to remain financially secure in uncertain times and allow their business to still thrive. Why do small businesses benefit from leasing equipment?

One advantage of leasing that small businesses benefit from is having equipment that is always up to date. As technology advances, equipment is upgraded and replaced by newer, more efficient models. If a business were to purchase equipment instead of leasing they would need to have reserves set aside to regular purchase replacement equipment or risk using less than optimal equipment in their operations. However, small business that lease are able to return obsolete equipment at the completion of their lease agreement and have the option to renew the rental of the most state of the art hardware and tools. This helps a small business remain relevant in changing times.

Small businesses also benefit from leasing manufacturing equipment because the payments are regular and fixed, making monthly cash flow projections, expenses and budgeting easier and more efficient. The payments made to the leasing company are also deductible as a business expenses which helps small businesses during tax time. Also, a small business owner would not have to concern themselves with the depreciation of the equipment or the cost of maintenance. Maintenance and repair of leased equipment falls under the responsibility of the leasing company. That benefits small businesses greatly because if a piece of equipment breaks they have no out of pocket costs, outside of their regular monthly lease payment.

Another advantage of leasing equipment is if a small business is attempting to break into a new market or manufacture a new product. They are able to explore all avenues of a new venture without the risk associated with buying new equipment. If the venture fails or the market is uncertain and the small business decides to downscale or eliminate the new venture altogether the cost of ending the lease agreement is less than the cost of returning or selling equipment that is no longer needed.

For small businesses, there are many benefits of leasing manufacturing equipment which can help your business manage cash flow and grow to its full potential. Each business and situation is different so research and thought is imperative before making a final decision. But like many small business owners you may find that leasing is the best for your business.

Why You Should Consider Medical Practice Acquisitions

If you own a hospital and are looking for ways to expand your reach and your customer base, medical practice acquisitions may be an option worth deep consideration. This is a purchase in which a hospital or other healthcare institution acquires smaller practices which are associated with it and include them in its circle of assets. In the end, this can be a very beneficial option for both the hospital or institution in question as well as the owners of the acquired practice as well as existing staff and the customer base which it already services.

First and foremost, the financial aspects involved with medical practice acquisitions. With the rising costs associated with owning a practice, many doctors and owners are looking to liquidate these assets in a way which will allow them to live comfortably while still practicing medicine. This is where a hospital can step in. Because hospitals normally already have a great deal of funding from other sources, acquiring another practice is normally a manageable venture.

While the benefits for the buyer are clear, there are perhaps even more benefits for the practice which is undergoing the process. The top two things which medical practice acquisitions offer to the purchased office is better overall cost efficiency and a generally higher place in a competitive industry. Because this transition will link the existing practice will several others which the hospital or healthcare institution owns, the networks of professionals and doctors is expanded greatly. Because doctors often refer their patients to other professionals within their own network, this is sure to increase the number of patients seen by the acquired practice over time. Thanks to its association with a larger institution, the practice also has more access to better equipment and training programs than ever before, allowing the business to grow and develop as needed as medical technology advances. Of course, this is beneficial to patients as well as those who are directly involved in the purchase, so the seller can rest assured that in the end they are truly doing what is best for everyone involved.

There are many crucial aspects of medical practice acquisitions which should be closely considered before moving ahead with this deal. Speaking with a professional or a representative in charge of these types of transactions can help to define any available options and set a hospital or practice on the right track to finding their ideal match. Finding a buying establishment and a selling practice which have goals and values which align is the key to success in arrangement.

Sale Leaseback Financing For Construction Equipment

Are you interested in using the proper equipment for your construction business while raising the capital you need? If so, equipment sale leaseback financing may be for you. This type of financing can create excellent funds for you, and you can use them for things like growing your business or upgrading your equipment. You can even use them to pay a lender off if you need to. During the process, you will transfer your equipment title to a financial institution for a specific price that both parties have agreed on. You will then receive the funds from them and you will make payments to them in return.

As for the application process, it is actually much simpler as compared to other financing methods. With equipment sale leaseback financing, you will choose a good company to work with and send them an application that states the equipment you would like them to consider. If your equipment works and is relatively new, you may not need an appraisal. Once your application has been sent, the company will likely respond in a day or two. If you are approved, you can receive funds in one to two weeks. Because you are selling the equipment to the company then leasing it from them, the process is very straightforward.

Equipment sale leaseback financing comes with numerous benefits. It is especially advantageous for those who cannot qualify for a traditional loan. For example, you will be able to enhance balance sheets, supply tax benefits or finance growth. This method is a great way to raise cash for your business as well. In addition, in terms of taxes, with this type of funding, the transaction can be a taxable sale.

So how can you tell if your equipment qualifies for sale leaseback financing? You can get the funds if you don’t have open tax liens or bankruptcies, you’ve got a FICO score that is 620 or higher, your financial statements show that you have the ability to make lease payments, your business has been running for two years at the minimum and you are the equipment owner. When it comes to transaction size, difference companies have different minimums in place. Research a variety of companies to see which would best suit your needs. In addition, companies can specialize in a certain type of equipment, so make sure the one you choose works with construction equipment. Are you ready to get access to financing? Check out this method today.

The 12 Best Seasonal Business Ideas

Are you thinking about starting a seasonal business but simply can’t decide on what type of business you want to get into? Here is a list of some of the best seasonal ideas.

Food Truck

 If you live in an area that has a tourist season, you might be able to make some good money if you feed all those hungry visitors as they explore your town.

Lawn Care

 Many people simply don’t have the time to mow their yards, weed their flower beds, and trim their bushes. This might be especially successful if you have a lot of affluent neighborhoods in your area.

Wedding Planning

While it is true that weddings happen throughout the year, they’re especially prevalent during spring and summer. Show off your event planning prowess and make some extra money in the process.

Photography

 Professional photographers are always busy during wedding season, but you could have work during other times, too. You could take holiday family photos, graduation pictures, and new baby portraits.

Catering

 Whether it is office parties in December or weddings and graduations in the summer, your ability to create delicious food and present it beautifully could serve you well.

Pool Maintenance

Forget the clichés about pool boys. People will often pay a good price to have someone come in and keep their backyard oasis in good shape.

Holiday Decorations

Are you good with crafts? You could create a range of unique holiday decorations and sell them online, or you could set up a kiosk in a local mall.

Snow Removal

If you don’t mind a bit of hard physical labor, pack up your shovels and your snow blower. The startup costs aren’t too high, and you’ll probably earn some repeat customers.

Tour Guide

Whether you’re a history buff or you just like interacting with all sorts of different people, you might purchase a comfy van and find an inspiring way to get tourists to fall in love with the sights in your community.

Personal Shopper

 A lot of people hate venturing into malls during the holiday season. If you’re a shopaholic, however, you’ll probably loving checking off the items on other people’s gift lists.

Tutor

 If you’re good at simplifying complex subjects, tutoring could be a good seasonal business for you. You’d have a lot of work around tests like the SATs and important state examinations.

Moving

People can move at any time, but moving is especially common in college cities when school gets out for the summer or when class is starting in the fall.

There are countless seasonal business ideas from which to choose. Find one that suits your interests, abilities, and area.

Small Business Financing For Your Next Venture

Congratulations! You have decided to start your own business. Now that you have charted your course, it’s time to think about financing your endeavor. When it comes to small business financing, there are a variety of options to choose from.

Family and Friends

In many cases, your best investors may be closest to you. Your friends and family may be willing to loan you a sum of money to help you get started. You may not need to put your house up as collateral and they may be happy to sell their interest back to you once your business is up and running.

Customers

If you have customers lined up to purchase your new product or service, they might be willing to advance you some of the cash that you need. If you offer them a discount, they may be eager to help you get the initial version of your product out the door.

Small Business Loans

Many banks provide federally-backed SBA 7(a) loans. Since any losses are guaranteed by the government, lenders are able to offer loan packages for new businesses. Interest rates vary according to the size of the loan, so shop around for the best deals.

Traditional Bank Loans

Banks have the most options for small business financing. You can obtain short and long-term loans for a variety of needs, such as real estate, working capital and equipment. You must demonstrate that you can generate sufficient cash flow to cover the principal and interest payments.

Local Organizations

Local and state economic development organizations offer loans with attractive rates and terms.  They are commonly partnered with business loans, so you can borrow more money at a lower overall cost.  Contact your local chamber of commerce for more information on these programs.

Small Business Innovation Research Grants

If you are transforming your intellectual property into a tangible product, an SBIR grant might be one way to pay the bills. Though the application process is a bit involved, you can get the government to help you fund your new business.

Tax Planning

The IRS is not a bank, but proper tax planning can generate extra cash for your business. Work with your accountant to identify the deductions you should be taking. When your business starts to generate a profit, see if you can use some of those funds to expand your business.

Small business financing encompasses a variety of options. Before you move forward, take some time to see which choices make sense for your new business. Your financial strategy may impact the success of your new venture.

Getting A Small Business Loan: What Lenders Require

Applying for a small business loan can be a stressful experience whether you’ve done it before or not. When a business seeks out a loan, it often means that they are in serious need of financial assistance. A lot may be riding on this loan. Luckily, there are a few ways to make the whole situation less stressful and easier for everyone involved. The best way to prepare yourself for this is to do the proper research. Find out what lenders require and make sure you adhere to these standards.

Different sources for your small business loan will often have different requirements. The main thing that lenders need in order to approve a potential client is information. You must prove that your business is reliable and is worth putting money into. Often you will need to provide paperwork like P&L or profit and loss statements. This will show a lender how well your business is doing from month to month. It also demonstrates important qualities like professionalism and honesty.

Something that many small business owners do is use this loan to start a new company. If this is the case for you, the lender may require you and your team to provide personal resumes. This will prove that you have previous experience in management and other related areas. Lenders will see that you can be trusted with the responsibility.

No matter what kind of lender you choose to go to, most of them will want to see a business credit report if your company is already established. If you are just getting started, they might want to see a personal credit report instead. Make sure what you turn in is as accurate as possible. Look over the report to weed out any mistakes and other things that could hurt your chances of getting approved for a small business loan. It may even be a good idea to get several reports from different sources and compare them.

Getting the small business loan that you need is often crucial. The success of the company may depend on it. All of this pressure can understandably make someone nervous. The intimidating nature of securing a loan is what keeps many business owners away from attempting it in the first place. Ease your mind and help guarantee the success of your business by being as prepared as possible. Educate yourself on all of the things that lenders require and make sure that you can provide it all. Now you can feel more confident and emerge victorious.

Small Business Structure And Taxes: What You Need To Know

In the world of business, even the smallest decisions can have a huge impact on the financial stability of a company and, by extension, those who own it. This is especially true when selecting a small business structure which the operations of a business will revolve around. The various options available for selection have huge impacts on how a business functions, one of the most important of which is taxes. Knowing what each option means for a business and its owners when tax season rolls around is important when undergoing this selection process, as each functions very differently and offers owners both benefits and drawbacks.

A nonprofit organization is perhaps the most preferred small business structure for many owners when it comes to taxes. This options is entirely tax exempt. However, there are strict requirements for those who wish their businesses to be included in this group. The owners of these businesses cannot earn a profit, and the applications to become a nonprofit company must be filed within 15 months of the formation of said business in order to be considered. At such an early stage, many businesses are unable to support this transition financially.

Another popular option for those who are just starting their business is a sole proprietorship. In this arrangement, there is only one owner who is entirely responsible for all legal and financial aspects of the business as well as tax burdens. While this might sound like a bit of a problem, this small business structure does have some distinct benefits. Sole proprietors are able to bypass the hassle of filing taxes through the business and can simply file the information through their income statements each year.

Partnerships are another viable options for those looking to choose a good model for their business. In a partnership, the partners themselves pay the taxes associated with the business. This allows them to bypass corporate tax rates, which can run very high. Unfortunately, like with a sole proprietorship, there is a great deal of liability placed on the shoulders of the partners with this structure, and those who cannot pay their debts are sure to encounter strict penalties which could be catastrophic for the business in question.

While these are three of the more popular structures which everyday small business owners utilize in successful companies around the globe, there are others. Speaking to a professional and closely considering the best option for your small business structure is the key to ensuring that your business has exactly the benefits it needs when tax season rolls around each year.

Turned Down for a Bank Loan? 8 Ways to Get Startup Financing

Securing startup financing is the first step to starting your business, but for many people, procuring a traditional loan from the bank is simply not an option. If your credit history is less than stable, there is a strong possibility that the bank may deny your request for a loan. This is enough to dash the hopes of even the most resilient entrepreneur, but there are alternative ways to secure startup financing. If you have ever found yourself in this situation, you may be able to finance your dreams using the eight methods below.

1. Microloans

Banks usually subject loan applicants to stringent standards, but there are smaller, private companies that offer loans to small businesses. Many of these companies can provide you with a microloan (small loan) to finance your startup if you do not qualify for a bank loan.

2. Personal Savings

If you have money in your savings account, you may want to put it towards startup costs. Before you sink your funds into the company, be sure that you have a solid business plan to rely on.

3. Credit

 There are many entrepreneurs who utilize credit cards and personal loans in order to cover startup costs. If your credit history is stable and you can make the minimum monthly payments, this may be an option for you.

4. Purchase Order Financing

If you need the funds to fulfill a large order, PO financing companies may be willing to provide you with the money. They will accept repayment after you have fulfilled the order.

5. Crowdfunding

Crowdfunding involves finding a group of like-minded investors via internet platforms and convincing them to contribute small amounts of money to your startup. Crowdfunding has become a more acceptable form of startup financing over the past few years.

6. Family and Friends

If your family and friends support your dream to start a business, they may be willing to contribute some of their own funds. Before accepting the money of others, be sure to draft a concrete and realistic business plan first.

7. Vendor Financing

As a startup owner, there may be times when you need items for your inventory. If this occurs, many manufacturers and distributors may be willing to accept payment after your goods are sold. Their decision to do this will usually be based on your creditworthiness.

8. Self-Directed IRA

Investment Retirement Account funds can provide many people with the funds they need. See if you can use your IRA or 401(k) to cover startup costs.

If you need startup funds, but don’t want to involve the bank, consider using one of the methods above. This will free you from payments that accompany traditional bank-backed loans for good.

Can Your Business Use Venture Capital Financing?

If you’re starting a new business, you’re probably looking for all the reasonable financial help you can get. For some businesses, this can be easier said than done. With increasing frequency, products and services are being released onto the market which have no comparable business models, but offer innovative, brand-new ways to approach a problem or accomplish tasks. While this is certainly a good idea in the eyes of the entrepreneur in question, most banks and other lenders are simply not confident in the success of new ideas and therefore will refuse financial assistance based on the risks involved. Venture capital financing is made for these sorts of business endeavors, and can help ensure that a business has what they need in order to be successful.

Venture capital financing through and institution is largely based on the potential gains of the product or service in question. Lending institutions analyze the business proposal from a myriad number of angles in order to decide whether or not the investment will be a profitable one, which can sometimes take an exhausting amount of time. However, if your business is approved by these lending organizations, you can get the funds you need to get going, whereas otherwise you might need to other, less official options such as crowdfunding or borrowing cash from family, friends or private savings, all of which are options which offer less security than a bank loan and are prone to fluctuation over time.

Of course, there are always tradeoffs when it comes to accepting venture capital financing from an institution. Because the lender is accepting a large financial risk, they will have a say in how the business in question operates and proceeds throughout its various developmental phases. This can be a boon for those who are new to the business world and are very concerned with generating a profit, but less than desirable for those who want to run their business in their own way and fulfill other, non-monetary goals. Furthermore the lender obtains a part of the equity of the business in question, which impacts the amount of incoming profits.

When deciding whether or not your business can use venture capital financing, it’s important to consider the negative aspects as well as the positive. What works for one business may not work for another, so weighing the pros and cons carefully is imperative during the decision-making process. Speaking to a professional can always help to clear the air of any confusing concepts or misconceptions about the process.