Asset financing is all about getting a loan by using your company’s assets. Assets, in this case, can be anything from FFE (furniture, fixtures, and other equipment), a company’s accounts receivable, or inventory. However, according to the guys at Equipment Loans Online, the current trend in the industry has seen companies using their inventory asset as collateral.
What is asset financing used for? Most of the time, the money generated from this type of borrowing is used as working capital. If you search for them online, you will see that there are many asset financing companies out there. And while we would tell you that all of them are good companies since the industry is regulated, the fact is that there are lenders that are better than others.
If you need money for additional capital, shop for it like you would shop for an expensive piece of equipment. Get a quote from at least three lenders and then compare and contrast their terms and conditions. Most asset financing companies have streamlined their process to the point where you can actually get a response on your application within the day and get the money shortly thereafter.
But rather than applying for a loan individually with several lenders, you might want to compare different loan products from one so-called portal website where you only search once and you get several results later.
In order to better narrow your search, search for a website that caters to your industry. There are lenders that specialize in lease financing for car rental companies, equipment financing for businesses in the hospitality industry. Basically, whatever industry you belong to, there would be a lending company that caters to it. So, connect to the Internet and get more information now.
While you are at it, take a look at your assets and see which ones you can afford to lose.Continue Reading...
You don’t have to pay for a full priced piece of equipment up front. It’s smart to work with equipment finance if you know what you are doing. This information should help you to research your options first so you can enjoy your time.
Consult with someone in your industry to see who they got financing from if they did at all. Sometimes you can get a great tip from someone that wants to help others that may be in the same position they were. Of course, some people may not tell you all of the things they are doing to help you out. This is why you need to do some research on anything you are told. You may end up getting things financed for a terrible price and can’t be able to work a deal that ends in your favor later one.
Don’t gloss over the terms and conditions and tell yourself you will worry about it later. This is why debt is a problem for a lot of people right now. They just take whatever they can get and think sometime in the future their business will take off. You may never be able to make a lot of money with your equipment or job you’re doing and need to make sure you can afford it until you do turn a profit. You’ll probably have to work hard and work at this with most of your time if you want to make it in this world today.
The equipment should be gone over by you and someone else that is not a part of the deal if possible. Then you can see if there are any issues that you should be made aware of, and if so you need to get a better deal that can be worked out then. However, if they lie to you and say that you aren’t seeing it the right way or something similar it’s better to use your time finding different help. The problem with a company that tells half of the truth or none at all is that you can get into some bad legal situations if things turn ridiculous.
There are many equipment finance companies you can work with no matter what kind of job you are needing them to get you equipment for. The people that you are able to work with the financing by following the tips here will get you started without too many problems.Continue Reading...