How To Put Equipment Leasing And Small Commercial Mortgages To Work For Your Business?
Topics: equipment lease, commercial mortgage, small business financing, small commercial mortgage $100000+
What is the first thing that comes to a small business owner’s mind when they need money to start or grow their business? More often than not, it’s a bank loan. Unfortunately, it is also one of the most difficult ways to finance a small company since banks are regulated institutions and have to adhere to many rules that are difficult for small businesses to satisfy. What are the alternatives? The two options that we will look at today are equipment leasing and commercial mortgages. Both of these tools present an excellent opportunity for business owners and yet are often overlooked.
Equipment Leasing
Equipment leasing is an excellent choice for a startup or existing business especially if your business uses a significant amount of equipment to make their operations efficient. What are the examples of equipment that can be financed? Just about anything that is used for a business: landscaping equipment, auto shop equipment, telecommunication equipment, medical equipment, metalworking, bakery equipment, restaurant equipment, etc.
Why does equipment leasing present an excellent option for business owners? It is usually a quick and efficient way to obtain financing. In many cases startups can get up to $20,000 by providing an application only. Companies that have been in business for 2-3 years are looking at up to $50,000 with an application only. That means there is no need to gather paperwork and a quick and easy submission and decision. In many cases you will hear back within 24-48 hours about a decision on your lease, which means you are closer to your goal so much faster. Larger amounts are usually available with full documentation packages. Many lease programs also have special features such as 3-6 month deferrals that allow businesses time to start earning revenue with their equipment.
In addition there are many more benefits to equipment leases including potential tax savings, predictable fixed payments, and 2-7 year terms. Many people do not want to consider leasing for fear they would not own the equipment at the end of the lease. Modern lease programs offer you a variety of end of the lease options including $1 buyouts where you pay $1 at the end and the equipment is yours. Another thing that comes up – people actually want to use their cash and not borrowed funds. That might sound like a great idea, but actually it is not since debt provides a business owner with leverage to catapult them to higher growth. Debt when used correctly is an excellent instrument for growth. Cash is best used for working capital needs.
Commercial Mortgage
Commercial mortgage is another excellent financing tool for a small business. If a company owns their current location, it is a great idea to consider pulling equity out to finance business expansion, consolidate debt, remodel or open another location. For companies that do not own their locations and are paying rent, it is always a great idea to run the numbers to see if it would make more sense for them to own the property.
One thing that usually stops business from pursuing this option is the lack of small commercial mortgage options. The options that maybe available typically require large down payments and strong tax returns. These are all valid reasons unless you know a business consultant that works with small commercial loans.
Preferred Capital Alliance, Inc. has started offering small commercial mortgages this week. These are the loans specifically targeted at small business owners. The maximum loan amounts are $1.5 million and they cover such property types as office, retail, warehouse, mixed use, self-storage, multifamily, mobile home parks and more! What’s even better is now a qualifying small business can acquire their business location with as little as 3% down. In addition to full document programs we also offer stated income programs that would benefit many business owners, which for one reason or another are not able to prove their income with tax returns.
In addition to acquiring property for your business, you can also refinance your existing property and/or invest into an income producing commercial property. The process is quite simple and we will walk you through each step. Just imagine in about 45 days you can own your business location or supplement your income with a commercial investment property! The possibilities are endless.
Pulling out equity from your commercial property often represents one of the cheapest options to finance your growth. Acquiring a commercial property instead of renting is also a smart decision in many cases.
All in all, there are many ways to finance companies, and bank loans are certainly not the only option. The smart thing to do is to find a reputable business finance company that can narrow down the options and help you obtain financing.
Tiana Nelson, CMA, CFM is a Business Development Officer at Preferred Capital Alliance, Inc. (www.prefcapital.com) a Better Business Bureau accredited business finance company that helps small- and medium-size businesses obtain financing to start and expand their operations.
Previous Articles Highlighter:
Writing Articles - A Great Traffic Generator For Your Website (1)
So, why do all of these authors take the time and put in the effort to write these articles and then release them on the internet for free? The answer is simple: exposure.
How To Make A Great Sales Letter That Pulls! (2)
Solving a problem should always be your focus when creating a product. Step 8 - Give your reader your guarantee, headline of why they should buy today and price.
How To Learn To Build Your Own Car By Belonging To A Car Club (3)
If you ever need help you don't even have to ask most of the time. If a person from inside the car club gave you the part that you are working on you better know it that they are watching you to make sure that you can do it and do it right.
The Downside To Becoming A Private Investigator (4)
Check with your local college or university and sign up to do a course. While colleges don't have private investigation courses as part of their curriculum, there are those who administer courses on behalf of G.E.S.
Investing In Orlando Real Estate (5)
Are you looking for Orlando Real Estate Investments? We have a list of available wholesale real estate investment homes for you to view. No sign up up is required just visit our site at www.realnetusa.com
Types Of Bank Accounts (6)
For many people, checking and savings is all that is needed, but many other people need a more robust variety of financial tools. Let's look at some of the more common types of bank accounts.
Finding Your Products To Sell On EBay Or Any Online Retail Business (7)
They put up the prices of the stock and simply pass on the orders received to the real wholesaler. By this point the prices are so high, it will be practically impossible for you to sell the goods and make any money.
Some Highlights About Visiting Hawaii (8)
So if you haven't already you need to buy your plane ticket. Gregg Hall is an author living with his 18 year old son in Jensen Beach, Florida. Find more about travel as well as luggage at www.nsearch.com
Three Must Have Internet Marketing Solutions For Your Success (9)
Add your messages to your autoresponder and then paste the sign up code into your site. Now you're ready to go. Another internet marketing solution you should consider is your website.
The Fine Art Of Removal And Storage (10)
Apparently, they will come in at a time convenient to myself and my husband, pack up all our goods with the delicate care they require and then project manage the removal and storage of the entire contents of our home.
Newer Articles Highlighter:
Online Shopping - Better Choice For Traditional Shopping (1)
Maybe the best possible places for that are online shopping malls. You can find hundreds or thousands of stores and millions of products in one place with easy search what ever product you are looking for.
Online Photoshop Training- Digital Image Editing And Composing (2)
Unless you're visual effects professional on a Hollywood film shoot, Photoshop is the best and only CGI tool you'll ever need. And if you want to be visual effects professional for film and television, mastering Photoshop is the best way to get your first job in the industry.
Making Money Flipping Real Estate (3)
Then, make modest and practical improvements, like attractive yet inexpensive kitchen improvements, fresh paint and vinyl siding. Also, you will need to research tax law when it comes to flipping properties.
Log Cabins And Lincoln Rear Ends: The Strange World Of Collectible Cigar Boxes (4)
New customers, new tobaccos, new products - companies were willing to try anything to distinguish themselves from the competition, and, not incidentally, to tempt smokers into buying not an individual cigar but the entire box.
Ten Steps To A New San Diego Real Estate Loan Part One (5)
Be sure to verify your agents credentials and expertise, and make certain that the agent you choose is a person that you trust and feel comfortable sharing your personal financial information with.
Using Ceremonial Drums For Unique Southwestern Home Decorating (6)
Today, Native Indian drums are not only used in Indian ceremonies such as Indian drumming groups and as Native American musical instruments, but they are also gaining popularity as pieces of decorative art, instruments used in school music classes and even as canvases for Native American art projects and southwestern paintings.
Trekking Poles Can Save Your Hips (7)
Baker, is an expert on natural health and fitness who has helped people from across the world sky-rocket their health and well-being. To find the best natural health information anywhere on the web visit: www.DietHealthAndFitness.com
The Terminator: Small Business Guru - Who Knew? (8)
Do you have a lead-capture plan in place? If not, get one. Make sure you have a prominently placed opt-in area on your home page -- preferably "above the fold." Offer a free report, coupon, discount or other promotional offer to encourage conversions of that traffic.
Online Success With Affiliate Marketing Program (9)
It is always wise to keep a backup of new affiliate partners because you never know when anyone would discontinue. The best way to protect you is to recruit new partners by listing in affiliate directories, promoting your affiliate program on your web site or by directly contacting potential affiliates.
Simple Steps To Avoid Holidays From Hell (10)
Ambar Hamid is a business strategist, a marketer and an avid world traveller. He has travelled in almost all continents of the world. Watch, Feel, Participate and Experience the Wonders of World Travel all via www.AmbarTravelBlog.com
Permalink to How To Put Equipment Leasing And Small Commercial Mortgages To Work For Your Business?