Single-payment car leases can save you some money, but probably not as much as you might think. Furthermore, there are some disadvantages that are worth noting.

Car leases are normally paid off in monthly payments over a specified period of time, the "term" of the lease. Each payment includes a portion of the amount by which the vehicle will depreciate in value over the lease term, a finance charge (interest), and possibly sales tax (in most states).

By making a single payment up-front, you avoid monthly payments and save some money that would normally be paid as finance charges. However, you don’t avoid all finance charges, only some of them. Since you never pay off part of the value of the vehicle (the lease-end residual value), you will pay interest on that value. By pre-paying your lease, you only avoid interest on the depreciation value portion of your lease.

There are also some other reasons that pre-paying a lease may not be a good idea. First, it negates one of the primary reasons for leasing, which is the fact that, with leasing, you don’t tie up your cash in a depreciating asset -- an automobile. Your cash could likely be put to better use elsewhere. Second, if your vehicle is stolen or destroyed in an accident, your insurance only pays the market value of the vehicle and you stand to lose much of the money you paid into the lease. Without the pre-paid lease, the gap waiver in the lease would pay for any difference between insurance payoff and lease balance. You lose nothing. Furthermoe, you may have difficulty getting a sales tax refund from your state/county.

In summary, if you are thinking of pre-paying your next car lease, you should carefully consider the benefits versus the possible disadvantages.

A lease, by legal definition, is considered to be a contract that allows the use or occupation of property for a specific period of time, with a specified amount of rent. There are different lease types, all with variable conditions and subject to the laws governing each state.

Different types of lease:

Finance lease

Also called a financial sale, it allows for the benefits of flexibility as payments are spread out to a period of several years, often the equivalent of the actual cost of the equipment or property.

A common misconception is that payments made for a finance lease equals to ownership, but this is not always true. Nevertheless, the lessee does have the option to purchase the property after the lease expires, for a significantly much lower percentage of the actual cost.

This kind of lease, however, is not suitable for individuals who wish to acquire rapid tax benefits.

True lease

Also referred to as a tax lease, this is the better choice when one wants to have rapid tax benefits.

It is also advantageous to professional institutions, as the lessor still remains the owner of the equipment, thereby trimming down costly investments when it comes to computers and other office-related gadgets that are prone to becoming technologically obsolete.

You will get the advantage of lower monthly payments as compared to that of a financial lease, and in some instances, these could actually be tax-deductible. When the contract expires, the lessee is given the option of purchasing the property for a very minimal amount.

Operating lease

This is considered, in general, as a short-term lease, usually three years or less. It is often associated with high-tech equipment, or property that is prone to becoming technologically obsolete.

In this type of lease, the lessor takes more of a risk in ownership, therefore allowing for much lower monthly payments for the lessee. The lessee also has the advantage of the lease being considered as neither an asset nor a liability when it comes to taxes.

The lessee also has the option of buying the property at fair market value after the contract expires, similar to a tax lease.

Skip lease

Yet another flexible lease type, wherein lessee and lessor agree to a payment schedule where some months, a set period of time, have no payment and penalty.

This kind of lease is typical for business institutions and organizations whose operations rely on a seasonal schedule. This is most common in school systems, and the agricultural and recreational industries.

Sixty or ninety-day deferred lease

This type of lease allows businesses that rely on income-producing equipments that take several months to generate revenue. A sixty or ninety-day deferred lease can be similarly structured to a finance and true lease. Lessees are required to make an advance payment, to be followed by the next ones after a sixty or ninety-day period.

Pre-paid purchase lease

This is an option often taken by new businesses which have no credit history. Lessees are required to make a one-time advanced payment of ten to twenty percent of the property’s total amount, thus reducing the monthly payments significantly.

When the contract expires, the lessee is given the option of purchasing the property for a very minimal amount.

As a decision-maker in the construction industry, weighing all equipment acquisition options is a critical aspect of the job - especially given today’s fluid marketplace.

With construction equipment leasing you don’t have to worry about the overhead of the purchase while keeping your cash accessible. No matter how big or small your project you can always find leasing options from the financial institutions who specialise in this type of product. Plus, payments you make under an operating lease are tax deductible.

65% of the top businesses lease equipment, according to an ELA survey. The top reasons these businesses cite for leasing include consistent expenses in budget management, increased cash flow, and the ability to have the latest equipment.

As businesses prepare to compete and grow in a new millennium, many are searching for proven new ways to address their equipment financing needs. And the choice for an increasing number in construction is clear: equipment leasing.

If structured properly, as a "true" lease, construction equipment leasing has some very important tax benefits. The payments can be considered a rental resulting in a 100% expense write-off. At the end of the year you would simply total your payments and deduct them entirely as an expense. This is a much more rapid write-off than interest expense and depreciation.

Most leases do not have to be shown on your financial statement as a liability, since theoretically it is a contingent liability, and only has to be shown as a footnote. This keeps your financial statement from becoming overloaded with debt and is important if your bank lines require maintaining certain ratios.

The biggest benefit, however, is that you can get the most money with the least information.... Up to approx. $100,000 with a single page application!

For many in construction equipment leasing makes perfect sense. Especially when you consider the upside: Leasing allows you to keep your machine stock flexible. When your work changes, your machines can too.

It provides a planned schedule for equipment replacement, helping you run newer, up-to-date equipment so you’ll have less downtime. It generally requires smaller amounts of money up front and monthly payments on your construction equipment leasing are generally lower than installment payments, thus freeing up cash and increasing the liquidity of your assets. And it doesn’t lock you into a long-term commitment to purchase.

It would therefore be wise for any business executive to investigate the advantages to equipment leasing in order to make the best use of current financial resources.

The future of equipment leasing is firmly hand in hand with business development, small, large and everything in between. Equipment leasing is synonymous with possibilities and what business does not benefit from possibilities? Equipment leasing offers businesses:

* Financial Options
* Growth or Expansion Options
* Business Potential

Financial Options

Businesses need financial capital to grow. Capital provides a business with options from loans to investments. Equipment leasing is tax deductible, whereas initial large investments are deductible the first year but only a percentage thereof is after that. Businesses hire accountants and tax experts to help them maximize their capital. The future of equipment leasing is in the financial options they offer to businesses, large and small.

Growth & Expansion Options

Small businesses and the self-employed may find their growth and expansion options limited without the options equipment leasing can provide them. From construction to accounting to medicine, equipment leasing provides a future for both. The rapid growth industry for equipment lessors is matched only by the needs of lessees.

What a company needs more than anything else is capital to invest not only in themselves, but also their future. Equipment leasing keeps the capital in their pockets and helps physicians, engineers, computer specialists and even writers develop their businesses. The future of equipment leasing is tied firmly to the package that is the American Dream.

Business Potential

While financial, growth and expansion options are definitely part of the future of equipment leasing. There is an untapped source that will find its future in equipment leasing. That source is the business potential in the entrepreneur. More and more business entrepreneurs are leaving the wildly hectic corporate world to start their own business.

When you go into business for yourself, there are a lot of trepidations. First and foremost, starting a business can be a risk for the individual and the family. Equipment leasing can help an entrepreneur minimize their risks, plan for a future and deal with unforeseen eventualities.

Equipment leasing can be the difference between achieving a dream and being stuck in a dead-end job. There is a surge in the growth of small business in the country, specializing in personal services from web building to direct marketing to selling homemade clothing. Equipment leasing can make all those possibilities happen and for fraction of the cost it would take to purchase the equipment outright.

Farmers and Other Opportunities

There’s a lot of focus placed on equipment leasing for private physicians, medical practices, construction companies and computer and Internet technologies. Another untapped market that benefits from equipment leasing is farmers that work small and large farm operations. Equipment leasing can keep the small farmer moving on a tractor or helping to rebuild a damaged barn.

Large equipment like tractors, backhoes, ditch witches and scoops are a hefty investment. Farms are a tricky operation and take a lot of backbreaking work and labor investment. When a piece of heavy equipment breaks down, farmers have a choice to repair it or do without. If they can’t affect the repairs themselves or afford them, then it is more than likely they can’t afford to go out and buy a new one. Equipment leasing would provide the farmer not only with the equipment to get the job done, but also to the maintenance support without the huge output of cash.

The future of equipment leasing is in business, industry and primarily people. It only takes a small investment to get started and that small investment returns the dividends to the lessee as their business and financial opportunities grow.

Leasing Explained Leasing consists on hiring an asset which remains the property of the lender but can be used by the borrower. The contract lasts for a certain time at the end of which the borrower has the option to buy the asset by paying a lump sum (usually a small percentage of the asset’s value). If he chooses not to do so, the contract ends or it can be renewed by replacing the leased asset with a new one. It’s widely used for cars and business equipment.

Benefits of Leasing Equipment Leasing equipment has many benefits; it combines the advantages of renting equipment with those of possession by means of loan financing. Furthermore, the main advantage leasing provides is flexibility. Due to it’s mixed nature, most terms are subject to negotiation.

No Money Down When buying equipment you need either to put money down or request a loan in order to purchase the equipment. When you lease, you pay monthly installments and get immediate tenure. It’s just like if you were renting the equipment only you’ll be able to acquire it if you want to at a later occasion.

Tax Benefits When you purchase equipment, it adds up to your taxable assets. If you requested a loan in order to pay for it, you can deduct the costs, but the equipment remains your property. When Leasing, you only hold possession of the equipment, it remains property of the lender and thus, you can deduct the monthly payments and it won’t add up to your taxable assets.

Flexibility If the equipment becomes obsolete, you can always request it to be replaced with a new one. Thus, you won’t suffer the consequences of obsolescence. You can have up to date equipment just by paying a monthly fee for it. Once you have no more use of it, disposing of it becomes the lender’s problem and not yours. Given all the technological changes that occur everyday, chances are that you will make an excellent use of this leasing characteristic. When it comes to starting businesses and businesses in the technological field or technology dependent, leasing is definitely the best financial alternative.

Fast Approval Since the asset remains property of the lender, leasing doesn’t have many requirements. The contract usually includes insurance policies attached to it so the lender get’s rid of certain risks related to the equipment and concentrates on its concern (financing).

Nevertheless a good credit history contributes a lot to getting a good deal on a leasing transaction. Bad Credit can increase the costs of leasing operations and since leasing is not the cheapest financial option, if you have really bad credit, it might be wise to consider other alternatives first.

Financing your Dump Truck You’re looking to buy a dump truck. Maybe you’ve been in business for a while or have just decided to start your own business. There are obviously many things to consider. Let’s focus on one of them. How will you pay for the truck?

Most people, including many bankers, only know of two options. Pay for the truck in cash or get a loan. Paying in cash is usually not an option for most people. Not too many of us have $50,000 or more in cash ready to spend. Even if they do, paying in cash may not be the best use of that money. That aside, let’s talk about a third option and compare it to a loan.

Equipment leasing is the third option but that certainly doesn’t mean it is third best. In fact it is commonly a better financial decision than a loan and is generally a lot easer to get an approval.

What is Equipment Leasing? Before we discuss why it may be a better option, describing what equipment leasing is and how it works is in order. Equipment leasing is essentially a long-term rental agreement with a buyout clause. The equipment is owned by the leasing company during the lease while the business has possession of and continual use of the equipment. Since the lender owns the equipment, the equipment itself is usually the only collateral. The buyout clause determines the business’s options at the end of the lease. Some typical buyout examples are based upon a percentage of the original sale price (e.g. 10% or 20% buyout) or a fair market value (FMV).

Why would you want an Equipment Lease instead of a Loan?

1. Easier to qualify. Banks usually require financial history of at least 2 or 3 years. Some leasing companies will finance equipment for start-ups with a simple credit application.
2. Improve your cash flow. A new or growing business needs to control cash expenditures. Equipment leases rarely require a down payment. -- if anything, only a few payments in advance. Loans require a significant down payment of up to 25% or more.
3. Tax advantages. Leases are frequently 100% tax deductible. If you are shopping the cost of a loan vs a lease, this is a very important factor that can make the lease a significantly better financial solution.
4. More for your money. Since the initial cash outlay is lower you can get more or higher quality equipment.
5. Other advantages. There are some other advantages depending upon specific situations including balance sheet impacts, seasonal payment options, protection from equipment obsolescence, to name a few.

Who provides Equipment Leases? Many large institutions and small companies provide leases. Some of these lenders are focused on credit (good or bad), a specific type of equipment (e.g. dump truck financing or medical equipment), large or small ticket, leaseback financing.

Many lenders specialize to be more competitive. If they are working with clients who have less than perfect credit they need to effectively manage any defaults. If a typical bank were to give out a loan on a dump truck and the business defaults, the bank would likely loose a lot of value when trying to sell it. To offset this risk, banks usually require a significant down payment. A specialized leasing company can minimize this default loss and can therefore provide better terms.

How do you find an appropriate lender? A good small business loan broker will have access to many funding sources and will be best able to find the right lender for a client. These brokers are similar in function to a mortgage broker where they select the lender and process the paperwork to facilitate the entire lending cycle.

Back to your Dump Truck.

So you may want to talk to a business loan broker regarding the advantages of leasing your dump truck. A lease may help you get started sooner, get a better truck, and save more of your cash. And it might just save you a lot of money in the long run.

Leasing a luxury car imposes lower costs, generally comparable to the interest rate of financing a loan. However, if you terminate a lease early or default on a monthly lease payment, you can face major financial penalties and ruin your credit rating. The decision of whether to buy or lease a vehicle also depends on your unique lifestyle. If you drive many miles each year and don’t mind paying repair bills, you probably should purchase your car. If, on the other hand, you exceed the mileage limitation or if the car shows considerable wear and tear at the end of the lease, you may find yourself paying large end-of-lease costs.

When you are thinking about getting a new car, the question always comes up: is it better to buy or lease? There is, of course, no one single answer. Each choice has benefits and disadvantages, so the choice depends on your own particular personal and financial circumstances.

A key issue is affordability. Is your job situation stable? Are you in overall good financial shape? The short-term monthly expense associated with leasing a car is much lower than the monthly payments required when purchasing a vehicle. With leasing, you pay only for the part of the vehicle’s cost used during the period of time you drive it. If you have the cash on hand, and you can pay the down payment and sales taxes – either in cash or via a loan – as well as the interest rate buying a car gives you that feeling of ownership and may be the best financial option.

If you want to get your hands on a luxury car, but you can’t afford the initial costs associated with buying one, leasing is your best option. Leasing a luxury car imposes lower costs, generally comparable to the interest rate of financing a loan. However, if you terminate a lease early or default on a monthly lease payment, you can face major financial penalties and ruin your credit rating. Before you decide to lease, make sure you adjust your budget for the monthly lease payment for the duration of the contract.

The decision of whether to buy or lease a vehicle also depends on your unique lifestyle. What does it mean to you to own a car? Do you bond with your car, or do you like having something new? If you plan to drive a vehicle for more than five years, buying it – through careful negotiations – is probably your best bet. On the other hand, if you would rather drive a new car every two or three years, leasing is for you.

You should also consider your actual transportation needs. Think about how many miles per year you drive and how you handle car maintenance. If you drive many miles each year and don’t mind paying repair bills, you probably should purchase your car. With leasing, contracts are made with assumptions of limited mileage, typically between 12,000 to 15,000 miles driven per year, as well as considerations of wear-and-tear on the vehicle. If you can stay within the stated mileage limits and keep the automobile in good condition throughout the duration of your lease, leasing is a reasonable option. If, on the other hand, you exceed the mileage limitation or if the car shows considerable wear and tear at the end of the lease, you may find yourself paying large end-of-lease costs.

"The most important contribution of the equipment leasing industry lies in providing access to capital," said Michael Fleming, the leader of the Equipment Leasing Association for the last 25 years. This summarizes the work done by equipment leasing companies in enabling the growth of other industries.

Role of an equipment leasing company

A company wishing to lease equipment goes to an equipment leasing company. An equipment leasing company buys equipment from the manufacturer or other sources and leases it to the customer for use, charging a fixed monthly fee for the duration of the lease. The customer does not have to pay huge down payment that would be required to finance the purchase of that equipment.

How to choose a leasing company?

There are so many equipment leasing companies that it is very difficult to find the right one for the desired equipment. Of course, the company offering the lowest fixed monthly rate is the best. But the requirements for the disclosure of business transaction in leasing are less than in the consumer market, so finding the best lease can be difficult.

First, contact the manufacturer of the equipment you wish to lease. Usually, manufacturers of the equipment will refer to a leasing company with which it does business. Get the quote from the leasing company and check it with the manufacturer. The manufacturer wishes to sell the equipment to you so he will check that you are not getting a raw deal. It is a good idea to get a quote from more than one leasing company. Then choose the one giving the overall best deal.

An equipment leasing company may be different in the sense that it might specialize in transportation equipment or medical equipment and even add free insurance coverage for the equipment. Also some companies might offer special packages for a new start-up, etc.

Conclusion

The role of equipment leasing companies in the everyday life of industries is well represented by this remark by Michael Fleming: ""If leasing were unavailable, many entities, from non-profit to private organizations, from tax-exempt entities to public companies, would not be able to acquire the equipment they need.”

Trying to find a house for rent can be very frustrating, to say the least. Most people complain that there just is not enough houses for rent to choose from. You might find the perfect house for rent, but it is not in the right area. Conversely, you may find houses for rent in areas, other than in your desired neighborhood.

As a means to finding more houses for rent, you might want to consider a rent-to-own program. Generally there are more houses available for rent-to-own, then there are only for rent. No need to worry that you have now committed yourself to buying the house. Signing a rent-to-own contract simply means that if you want to buy the house at a later date, you have that option.

But what if your credit is bad, or you have no credit? For most investors bad credit is not a big concern. Typically, they work with a loan officer who will help you repair your credit, often in 6 months or less.
The great thing about rent to own houses is that typically, you get a rent credit, which can be applied to the purchase price of the house. Often, as much as 20% per month for all on-time payments!

Look at the following example:
You find a house for rent, on a rent-to-own program. The option to purchase price is 200,000. After 24 months this rent to own house appreciates in value by the industry average of 4% per year, making it worth 216,320. Now, let's say your rent payment is $1,500 per month. At the end of two years you will have paid $36,000 in rent. But wait! You have a 20% rent credit of $7,200!

IF you choose to exercise your Option to Purchase, you can buy this $216K house for $192,800! The best part is, there will be NO REALTOR FEES! What bank would say no to a loan like that?

So if you are trying to find a house for rent, you just might want to consider rent to own houses too.

Buying a car can be rather complicated, as the whole process tends to be somewhat mysterious. It’s often hard to know if you’re getting a good deal or not, even as the salesman claims that he’s selling you the car “at invoice.” Leasing a car is much the same way, except that the terminology is different and you don’t get to keep the car. You’re still going to spend a lot of money, though, so it makes sense to be as well informed about leasing as possible.

For most consumers, leasing makes less sense than buying. When you buy, you have a tangible product that you can resell later or trade in for a new one. With a lease, the only thing you are buying is the right to use the vehicle for a while. If you don’t drive a lot or if you just like having a new vehicle every couple of years, leasing may be a good choice for you. Before you get involved, here are some things you may wish to consider:

# The money factor – This is the equivalent of an interest rate on a car sale. The money factor, in order to remain mysterious, will be presented as an odd number with a lot of decimal places. To convert it to an approximate interest rate, multiply it by 24. The money factor, like just about everything else in a lease, should be negotiable.

# The amount due at signing – The size of the check that you have to submit when you sign the lease can be sizable. You’ll hear a lot about low payments in the commercials, but little (except in the fine print) about the amount you have to pay upfront. That will include title fees, license fees, deposits and a reduction in the capital cost that will reduce the size of your monthly payments. Ask about this ahead of time; you don’t want “sticker shock” when you see the total.

# Duration of the lease – Make sure you understand how long the lease will last. If you want a car for three years, make sure the lease isn’t for 24 months.

# What happens at lease end? You may have to pay, or you may get to walk away, or you may have the opportunity to buy the vehicle. The end of lease situation is spelled out in the document; make sure you understand it before you sign.

# Total mileage allowance – The lease will stipulate how many miles you may drive over the course of the lease; you will have to pay a per mile charge if you exceed that. The per mile fee can be excessive, so make sure that the number of miles that you are given matches your driving expectations. Keep in mind that the mileage amount and the per mile fee is negotiable.

Each of these things can be an expensive nightmare if you aren’t prepared for them. Leasing a car is different from buying one and you need to understand that long before you sign your name on the contract. Otherwise, you could be in for an expensive ride.

When it comes to leasing equipment, understanding what it can do for your business is only part of the equation. Understanding and choosing the best lease for your business is another matter altogether. The market is primed for the use of equipment leasing to expand, grow and hone a businesses assets, but at the same time there is little material out there to help a business judge what’s a good lease and what isn’t.

What You See Is What You Get

There is an old truism that says you get what you pay for. When it comes to equipment leasing, you want a lease that clearly defines your responsibilities versus the lessor’s responsibilities. You really want it to be what you see is what you get. So how do you go about choosing the best type of lease for your business?

Shop the options is the best way to get started. If you know what type of equipment you need, then comparison-shop the options with different companies. Some key figures to make sure are included in any lease option are:

• Cost Per Month
• Maintenance Contract
• Cost of Maintenance Contract
• Training Available
• Customer Service
• Availability for Software and Hardware Support
• Obsolescence Upgrades
• Term of Contract
• Renewal Terms

When it comes to long-term leases, it’s better to set the terms from the outset to deliver the best possible results to the company overhead. When it comes to maintenance, many leasing companies package that as a separate component. If a piece of equipment fails altogether, it’s likely the leasing company will replace it. But what if the piece of equipment goes down? Will there be a 2-hour, 4-hour or 24-hour response time to getting a service technician on-site and the equipment back into operation?

This information is critical because when a piece of equipment is operable, it’s just a piece of junk taking up room and preventing the business from operating normally. Upgraded maintenance contracts will have to be negotiated. But there’s also the concern about what happens when a newer, better model of equipment becomes available? Does the lease terms support an upgrade to this model of equipment or will it require waiting until the contract is up for renewal?

Beware Hidden Costs

By getting the information up front, a business can avoid hidden expenses. They can plan budgetary requirements and potentially for long-term leases, bring up training requirements for their staff. This is another concern that some companies don’t consider when negotiating a lease. Will the operator of the equipment receive training from the leasing corporation? Do they have representatives that understand the operation of the equipment and provide certified instruction? If not, how is that handled?

While this will not be a concern for every piece of equipment leased, for those businesses that require certified training it’s good to know if it will be available. Also in the case of leasing computer equipment, how is software licensing handled? Is packaged into the hardware lease or do those licenses need to be obtained separately?

Finally, understanding the renewal terms can help circumvent a rise in cost for renewing an equipment lease. Some contracts will allow locking a price for a period of five years. The lease may only last two years, but at the renewal point the cost is locked in for that particular piece of equipment. When it comes to a long-term budgetary forecast, every piece of information can help.

Clearly defining what an individual contract delivers from a leasing company can provide a business with the opportunity to comparison shop. By comparing the different options, price levels and services from one leasing company to the next, a business will be choosing the best equipment lease for their business.

Bulldozer Financing

Ok, you’re ready to go out on your own. You’re tired of working for the man. You have been grading and clearing land for years and know what it takes. You have great contacts that have plenty of work for you but you don’t own your own dozer. And you certainly don’t have $100K or $60K or even $30K to buy something decent that will keep working for you.

So what are your options? Borrow money from a friend? We all wish we had friends with this kind of money ready to hand out. How about a loan from the bank. Well, it might be worth a try. But banks are not usually interested in lending to new businesses and would likely require excellent credit and a huge down payment. Even if you were able to convince them to take a closer look they would probably require a rock solid business plan and financial covenants to oversee your progress.

There is another option. Equipment Leasing. Getting a lease for the bulldozer you need may be easier that you think. If you have decent credit you could be making money with that bulldozer next week.

What is Equipment Leasing?

Equipment leasing is essentially a long-term rental agreement with a buyout clause. The equipment is owned by the leasing company during the lease while the business has possession of and continual use of the equipment. Since the lender owns the equipment, the equipment itself is usually the only collateral. The buyout clause determines the business’s options at the end of the lease. Typically, buyout options are based upon a percentage of the original sale price (e.g. 10% or 20% buyout) or a fair market value (FMV).

Why would you want an equipment lease instead of a loan?

1. Easier to qualify. Banks usually require financial history of at least 2 or 3 years. Some leasing companies will finance equipment for start-ups with a simple credit application.
2. Improve your cash flow. A new or growing business needs to control cash expenditures. Equipment leases rarely require a down payment. -- if anything, only a few payments in advance. Loans require a significant down payment of up to 25% or more.
3. Tax advantages. Leases are frequently 100% tax deductible. If you are shopping the cost of a loan vs a lease, this is a very important factor that can make the lease a significantly better financial solution.
4. More for your money. Since the initial cash outlay is lower you can get more or higher quality equipment.
5. Other advantages. There are some other advantages depending upon specific situations including balance sheet impacts, seasonal payment options, protection from equipment obsolescence, to name a few.

Who provides equipment leases?

Many large institutions and small companies provide leases. Some of these lenders are focused on credit (good or bad), a specific type of equipment (e.g. bulldozer financing or medical equipment), large or small ticket equipment, or leaseback financing.

Many lenders specialize to be more competitive. If they are working with clients who have less than perfect credit they need to effectively manage any defaults. If a typical bank were to give out a loan on a bulldozer and the business defaults, the bank would likely loose a lot of value when trying to sell it. To offset this risk, banks usually require a significant down payment. A specialized leasing company can minimize this default loss and can therefore provide better terms.

How do you find an appropriate lender?

A good small business loan broker will have access to many funding sources and will be best able to find the right lender for a client. These brokers are similar in function to a mortgage broker where they select the lender and process the paperwork to facilitate the entire lending process.

Back to your Bulldozer.

So, looking for some bulldozer financing? You may want to talk to a business loan broker regarding the advantages of leasing your bulldozer. A lease may help you get started sooner, get a better dozer, and save more of your cash. And it might just save you a lot of money in the long run.

Advancing technology is bringing with it new medical innovations. We are certainly benefiting from these innovations, as in the case of new scanning equipment. This equipment is at the forefront of research and is very costly. To keep up with the technology, hospitals have to update their expensive equipments regularly; otherwise, they cannot offer the best health care to their patients. Every time a medical establishment upgrades the equipment, it has to sell off the old equipment.

Advantages of leasing medical equipment

Doctors starting a new practice might have modest capital and therefore not be able to afford to buy the best, new equipment. This will certainly hamper their business prospectus. Who will go to a new doctor with obsolete equipment? By leasing, the doctors can get the latest equipment and can use their cash to run the practice efficiently.

Large hospitals might have the capital required to buy the latest equipment, but they are in danger of getting burdened by the obsolete, costly equipment in near future. By leasing, the risk of ending up with an obsolete machine is minimized, as you can build, upgrade, or add-on to the lease. In the process, hospitals also save lot of cash, as there is hardly any upfront amount required for leasing the medical equipment. As a result, the hospitals can expand their business with the saved money.

Medical equipments available on lease

According to a study, the medical industry in the United States leased approximately $ 3 billion worth of equipment in the last year. Examples of the equipment that can be leased are blood analyzers, CT scanners, heart monitors, and X-ray machines.

In the medical industry, businesses need to stay equipped with the latest machines. Therefore, in such a technologically driven business, leasing medical equipment is a more profitable choice than purchasing it.

Leasing office space is a chief concern for many businesses. Besides the influence of the cost of office space lease, there are several other vital factors. Some important factors that play a role in office space selection is satisfaction of the employees, output, limitations for growth and, very importantly, the corporate look. To get a fair deal, it is important to have an expert who has knowledge of the current market trend and, of course, the person must have a good understanding of your needs. A veteran tenant representative can successfully get you a very suitable deal.

Tenants do not look for new office space very often but landlords are used to renting out their office spaces repeatedly. Therefore, the tenant has to be really smart and alert and should get a representative exclusively for this purpose. Even if it requires a nominal fee, it will save you from further expenses and keep you from having major complications. In the long run, you will realize that the money spent to hire a tenant representative for dealing with your office space lease issue, is well worth it!

To buy or to lease office space? –This is a question that every business has to consider carefully. The future is absolutely uncertain, especially owing to the ever-changing nature in the rate of the U.S office vacancy and stock markets. So it is essential that the business owner carefully studies the pros and cons of buying or leasing office space.

Now let us see, what are the pros of leasing office space.

First, leasing gives the tenant the option of making a choice of places and the image the area projects. The leasing option is indeed favorable, especially if you are in retail or the restaurant business. The reason is, these businesses depend upon location and image.

One important plus of leasing is that you won’t have to invest a lot of money in office space and therefore you can easily devote that money to running your business,

Also, you don’t have to bear the responsibilities of ownership. An owner of a property has too many responsibilities and carrying them out eats up a lot of time. Thus leasing office space allows you to be focused on your venture and run it smoothly.

Among the cons of the leasing process, the first thing that deserves a mention is the erratic cost factor. With leasing, your rent may increase annually, subjecting you to high costs by the end of your lease. Another downside of leasing is not having any equity. You will be funding someone else’s retirement with your lease payments.

However, office space leasing is a fairly flexible process. The cost of office space depends on the actual footage that is leased. Usually, the tenant has to pay a one-month security deposit in advance for the leased space and for services in a yearly contract. All services are prepaid. The usual price range of leasing single offices, two office suites, three office suites and four office suites are $90-$150, $200-$350, $280-$425, $400-$750 per month, respectively.

There are many important differences to consider when you are deciding whether to get a loan to purchase a car or lease a car from a dealership. Some of the considerations are whether it is business or personal, how many miles you will drive and how long you intend to keep the vehicle.

With a conventional loan the car belongs to the bank that gave you the loan until you have paid off the loan. Then, the car becomes yours. If you are the type that keeps a car forever this is probably for you.

With a lease you are essentially renting the car from the dealership. The lease is like a rental agreement. You make monthly payments to the dealership. But the car does not belong to you. When the lease ends, you have to return the car to the dealership.

Now let's look at some other considerations and comparisons between a lease and a regular loan.

Wear and tear:

No additional costs for wear and tear in your loan agreement. Most leases charge you extra money for any damage they find at the end of the lease that goes beyond "normal wear and tear."

Monthly payments:

Payments are higher with a loan; however, at the end of the loan, you own the car. Payments are lower with a lease. This is because you are not purchasing the car; the dealership still owns it. Once your lease ends, you turn the car back in and the dealership can sell it or lease it to another customer. You may decide to purchase the car at the end of the lease; however, the total cost ends up being more than it would have been if you bought the car instead of leasing it.

Mileage:

No mileage restrictions with a loan. Leases restrict the number of miles you can drive the car each year. If you exceed the mileage allowed, you have to pay the dealer for each mile over the limit, in accordance with your lease. For example, a dealer may charge you 15 cents for every mile that you drive over 24,000 miles in 2 years. If you drive the car an additional 3,000 miles, you would owe the dealer $450 for those miles.

Auto insurance rates:

May cost more during the loan than it will after the loan is paid, because the lender may require more coverage, but usually still less expensive than auto insurance for leased cars.

Usually costs more if you lease a car than it does if you buy. Most car leases require you to carry higher levels of coverage than purchase agreements do. Some insurance carriers may also calculate leasing to be higher risk than purchasing.

These days it seems every where you turn car dealers are trying to sell you on leasing a car instead of buying. While leasing may be good for some, for the majority of people it is not. Here are a few things to watch out for when negotiating a lease, and yes just like a purchase they are negotiable.

When you lease a car you need to pay particular attention to the terminology for what you are responsible for at the end of the lease. Sometimes they charge a vehicle disposition fee which I have seen as high as $500! They may charge you for excessive mileage, excessive wear on tires, etc. Let’s take a closer look at these things.

First off, we have the disposition fee which is the fee charged by the leasing company or bank if you decide to turn the vehicle in instead of buying it at the end of the lease term. The fee is usually described as necessary to cover expenses that the company will incur to sell the vehicle such as getting it ready to sell, auction expenses, and commissions. Be sure that the fee is stated clearly and remember that you can negotiate.

One of the biggies that nails a lot of people who lease is the excess mileage charge. Nearly all leases charge these penalties; as a matter of fact I have never seen one that didn’t. These charges can add up quickly with some companies charging as much as 30 cents per mile for every mile over the mileage allowed in the contract which is typically only 10,000 to 12,000.

I don’t know about you but I drive more than that and so do most people. The average is around 15,000 miles a year. This can be negotiated into the lease so be sure that you get extra miles upfront, it’s a whole lot cheaper that what you will pay on the backend.

Another way that you get stuck is by vague “excess wear and tear” clauses. You need to make sure it is spelled out in the contract what the definition of excessive wear and tear is. If there is no description telling you what the standards are that they go by then it will be up to the leasing company and the person inspecting the car when you turn it in and you will left holding the bag. If you have minor damage you are better off having it repaired yourself than turning it in and letting the lease company handle it. They will always charge more than what you can get it done for.

My suggestion as a former automobile sales manager is that if you are stuck on leasing that you make sure you stay under the mileage allowed, keep maintenance records, repair any damage, and get the vehicle looked over and appraised before turning it end at the end of the lease. If you have all of your records in this way you are far less likely to be hassled.

Buying a new car is not a simple task. Before purchasing a new vehicle, you must consider a lot of factors such as cost, insurance, interest on loans, and so on. You must also visit several showrooms in your area and check different websites sites on the Internet. Getting hold of and comparing several price quotations from different sources will definitely help you discover the best deal.

Research on new cars include reading published articles from auto magazines or car websites regarding new car models, features, prices and reviews. You should look for ads in print and online. You should visit several car showrooms and negotiate with different dealers. You may also want to enlist assistance from a car-buying service or broker-buying service to obtain many price quotations. When agreeing on a price, car dealers may be willing to negotiate on their profit margin.

With the technology of the Internet, many of those interested to buy a new car are also researching online. Surfing the Net, you do not have to leave your home or office to swing from different showrooms and deal with very persistent dealers face-to-face. The Internet also offers windows for more information. It posts not just reviews from car experts but from regular car users as well. What’s more, online car sellers sometimes even offer lower prices.

New car quotes can be obtained online following very simply steps. You just visit a site, or better yet, visit several sites, and ask for a quotation on the vehicle you are eyeing. You just have to choose the car type (convertibles, passenger sedans, sports utility vehicles, sports car, luxury cars, compacts, vans minivans, pickup trucks, wagon, etc.), make (Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, Honda, Hummer, Hyundai, Isuzu, Jaguar, Jeep, Kia, Land Rover, Lexus, Mazda, Mercedes Benz, Mercury, Mini, Mitsubishi, Nissan, Pontiac, Porsche, Saturn, Scion, Subaru, Suzuki, Toyota, Volkswagen, Volvo, etc.), model and year made. You can also ask for quotations depending on your mode of payment (cash or loan). Some services even compute how much you have to pay monthly depending on how big or small your down payment is. The quotation is then given right then or sent via email in as fast as a few minutes.

New Internet-based office space firms have reduced the amount of time it takes to find the perfect office for your growing business–whether you need a single office or an entire floor or building. Additionally, using the Internet as a tool to find office space should also reduce the amount of money you will pay by giving you a wider range of options to choose between. Office space varies greatly in price and options and using the internet to locate a new office makes it so much easier to find a space within your budget and with the options you need.

You can simply contact companies like Regus or HQ over the phone or at their respective websites to get office space quotes on the spot. You can sort your results using all sorts of criteria, including area, office type, and price range. These features of searching for office space sure do make it quick and easy to find the space you need.

If you are looking for office space quotes on the lower end of the spectrum, you may want to ask Regus or HQ to look for office space in areas with less-competitive real estate markets–and, subsequently cheaper offices. You may actually find something that is closer to your home and to your other employees. It is entirely possible to loose some employees in a move to another office space so considering them will go a long ways in keeping the attrition down to an acceptable level.

In addition to looking for office space quotes for different areas, you will also consider the different office types available. Unless you absolutely need a full-time office, you may want to consider getting a cheaper office with a shared-hour plan–or a virtual office that will take your calls and faxes full time, but will only allow you a small amount of hours in the actual office. These are just some of the possibilities available for office space.

Conversely, you may have more money to spend and a broader goal in mind; in this case, you may want to purchase or rent a conference room with a full suite of features, including teleconferencing and computers with Internet connections. Make sure you understand all the features you will need in an office space before committing to any lease plan.

In either case, contacting Regus or HQ for an office space quote will make your selection easier, cheaper, and better suited to your specific needs. Check them out today for your ideal office space requirements.

Businesses have different needs, and one of the most important is the transportation of raw material to the place of manufacturing and/or the finished goods to the various markets. Various transportation vehicles, sometimes very special ones like vacuum tank trailers, are needed for the transportation of goods. Let us first see the advantages of leasing the vehicles over buying them.
Advantages of leasing transportation equipment
Leasing transportation equipment allows a company to get the new transportation equipment immediately without shelling out all the money at the time of buying the equipment. This way, the company can use these funds for other everyday running expenses. A leasing term corresponding with the manufacturer’s warranty period will make sure that the company does not have to pay for the repair costs of the vehicle.
The cash generated by operations or conventional finance by many transportation companies is not sufficient for buying the new equipment. In this case, such companies can lease this new equipment to expand their business.
In case of a new transport company, it can avail itself of many tailor-made contracts, like transportation equipment for construction. Under this, the company can get all the construction related transportation and other equipment on lease for a special price. It can also get fast financing for leasing.
Transportation equipment that can be leased
All kinds of surface, air and water transportation equipment can be leased. For example, aircraft, railroad cars, and steamships, can be leased. A company can lease from one vehicle up to a fleet of vehicles. Also one can lease used vehicles.
Transportation industries strive to minimize the fixed costs supporting each vehicle. Also the old or obsolete equipment is disposed off regularly, and to balance for that, the transportation firms need to buy new equipment. They have to satisfy these demands using the limited capital. Therefore leasing of transportation equipment is necessary for the growth of the transportation business.

Everybody must have come across the term “leasing,” in one context or another. Take, for example, leasing a car. If we wish to drive a car that we can’t afford to buy or wish to change the car often, say every three years, then leasing the car is the best option.
When a company is short on cash but needs equipment, it can lease it. The owner buys the equipment with a loan and then rents it to a company for a fixed monthly fee. All kinds of equipment, like medical or transportation equipment, can be leased. There are different companies specializing in leasing such equipment.
Should my company lease or buy the equipment?
One has to consider different parameters before making the decision about leasing or buying the equipment. The most important consideration is the financial aspect. If we wish to buy the equipment, are we going to get the necessary credit? The equipment might be prohibitively expensive for an emerging business. When this is the case, a company may be better off leasing the equipment.
If we buy the equipment, we can claim a tax benefit equivalent to the depreciation value of the equipment. On the other hand, if we lease it, are we going to get the tax deduction equivalent to the lease amount we pay? Therefore one has to be very careful about the tax guidelines and the respective lease terms while finalizing the lease. Also remember the lease financing is usually more expensive than bank financing. But it is easier to obtain for small amounts. Also we can easily upgrade the equipment after the end of the lease without worrying about selling the outdated equipment.
How to lease the equipment
Once we decide to lease the equipment we have to search for the best deal. A good deal will make a business success story. On the other hand, an unfavorable deal might prove to be the end of the emerging business. So, it is extremely important to scrutinize the legal fine points when choosing the lease. The leasing company will look for the best deals and will take care of the legal issues related to the deal.
Equipment leasing is an option to look for a company that is diversifying and may not wish to buy the equipment. Or it may be a good choice for a company that is just starting up. Even so, leasing might be more expensive than buying the equipment.

You open the curtains, look out, and blocking your view is a shiny new Pontiac G6 or otherwise expensive car sitting in your neighbor's drive. You wonder where your neighbors get the money to buy a new car every year or so. Well, they could be automobile leasing.
What is automotive leasing?
With automobile leasing you pay for the use of the car not for the car itself, ie: you never actually own the car, and it stays the property of the leasing company. Monthly lease payments are based on the estimated cost of the vehicle’s depreciation over the period covered by the lease. For instance, suppose you lease a car valued at $20,000. Over the course of a three-year lease term, the car may depreciate in value to $10,500. This depreciated value, or residual value, is subtracted from the car’s initial value. The difference between the two values, in this case $9,500, is what you will be paying for the duration of the lease. Leases typically last for two four years, with leases on high-end vehicles and luxury cars sometimes stretching up to five years. When your lease expires, you have the option of either buying the vehicle or moving on to a new lease, and most leasing companies give you the option of upgrading your car at the expiration of your lease.
What are the benefits and drawbacks of leasing?
Monthly lease payments are generally lower than monthly loan payments on the same vehicle, assuming that the lease and the loan have the same duration. Leasing lets you drive a new vehicle every few years depending on the length of your lease. Additionally, leasing allows you to drive a more expensive and feature-packed vehicle for the same monthly payment you’d be making to buy a lower-priced model. Your leased vehicle comes with a warranty while it’s in your use. Furthermore, automobile leasing saves you the trouble of selling your used car or trading it in when you’re ready to buy a new one. Moreover, you may also write off a portion of your lease payments as a business expense if you have a legitimate business use for the vehicle. Ask a qualified accountant or tax professional about the eligibility requirements for the tax write-off.
While leasing offers several benefits, it also has its share of drawbacks. One disadvantage is that vehicles on lease programs have annual mileage limits, usually 15,000 miles per year. If you exceed the mileage limit, you will be charged a predetermined amount for every excess mile. Another drawback to leasing is the slew of fees and charges that you will have to pay at the beginning and end of the lease. Among these additional fees are the lease acquisition fee, the lease disposal fee, and the lease finance charge. There are also extra charges for extended warranties, insurance coverage, and other items. Furthermore, if you terminate the lease before the lease period is over, you will be assessed an early termination penalty. Another disadvantage to leasing is that you will have to return the vehicle when the lease expires, unless you choose to purchase the vehicle at lease-end.

Having a new car is one of the biggest achievements that most people can have. Other than financing education and buying a home, there is really nothing else that can compare to the huge expenditure that comes with purchasing a new car.
Therefore, only a few people can really afford to pay for a car outright. Most people rely on car financing in order to purchase a new car. But with the many car financing options available nowadays, it is wise to research thoroughly for a car financing company that offers the best rates.
Most car financing companies offer better deals compared to local car dealers. While it is convenient to have your car dealer provide you with the loan and plan, it is still better to get pre-approval from a car financing company because they offer more reasonable interest rates and payment options. To choose the car financing company with which to conduct your transactions, you have to consider two things: their rates and reliability.
Car financing companies vary on the interest rates they offer to customers. If they have seen that you have good credit history, the interest rate on your car financing loan may not be as high compared to a person with bad credit history. And if you really want to secure car financing with low interest rates, you should try looking for an online car financing company. By applying for your loan online, you save the company time and money, thus the savings from the cost of doing business are passed on to you.
In addition, you should also check the credibility of the company, especially if you want to do your transactions online. You have to make sure that the company you choose has been in operation for years. Aside from this, you can also ask your colleagues and friends who have already secured car financing from a car financing company about their experiences in loan application. They can recommend a suitable company to you.
Finding a car financing company for your loan application can be difficult if you do not know what to consider and where to start your search. But if you go online and ask trusted sources for their recommendations, you can easily compare car financing rates and select the best deal for you.

Have you been thinking about the car of your dreams for years now but you just can’t purchase it because you are still short of cash? You don’t have to wait any further because there are lots of car financing options available in the market nowadays.
Car financing enables you to purchase and own your dream car without having to wait until you save the needed funds to pay for the car outright. You can always pay an amount now for a down payment and pay the rest in installments. However, you have to be careful when choosing the company to conduct your transaction with. One aspect that you should carefully look into is their car financing rate package.
Car financing rates vary from company to company. There are companies that offer higher interest rates than others, while there are some that offer a rate of 1.9 percent for the first year and increase the rate the following year without prior notice. This kind of increase can be very inconvenient if you are a fixed-income earner.
If you are on the lookout for really low rates, you can always go online and check online car financing companies. They can offer lower rates compared to other car financing companies. This is because the online company saves a great deal in doing business with you online, which can prove to be more efficient than most personal transactions. They are able to save time and effort explaining because you can understand the details of what they offer through their website’s contents. Thus, the savings they get from the online transactions are passed on to you as their customer.
Getting the best car financing loan can be very confusing. However, if you have the determination and patience to compare car financing rates from different car financing companies, you will be sure get the best deal for your car purchase.

The benefits of leasing are many as evidenced by the fact that 80% of US companies lease some or all of their equipment. These benefits range from conservation of working capital to tremendous tax advantages.
While leasing does deliver a number of benefits there are also a few risks that you should be aware of. These risks can create frustration and could cost your company valuable time, energy, and a significant amount of money. With the right due diligence your company will be able to avoid these potential pitfalls and use leasing to help your business grow.
The following items are key elements to lease agreements and should be reviewed and scrutinized prior to signing your agreement. In order to ensure all risks are accounted for your agreement should be reviewed by your attorney.
1) Purchase, Return, & Renewal
These agreements are notoriously vague in regards to end-of-lease provisions on leases with a fair-market value residual. Specifically, the provisions dealing with purchase or renewal of the leased equipment at the end of term. The verbiage fails to provide steps for determining fair-market value. Without an agreed upon way of determining fair-market value the lessor may have the right to dictate what that value is. If an astronomical value is set by the lessor and you do not agree to pay that value then you could automatically enter into another agreement for a specified term. Terms on these extended agreements could range from 6-12 months.
Obviously the scenario described above could cost you a considerable amount of money if you signed the bottom line. To avoid these agreements make sure you read your lease agreement in it's entirety and ensure that your end-of-lease provisions are clearly defined.
2) End of Lease Notices
Every lease with a significant residual, fair-market value or 10% for example, will have contract language regarding end of lease notices. These notices typically state the window of time you have to notify the lessor of your intentions on the residual. These notices are necessary for the lessor to be able to take action in re-marketing the equipment, if necessary.
For example, a notice may state that you must contact the lessor in writing 180 to 120 days in advance of the end of term. If you fail to make your intentions known within this window then you could be automatically entered into another 12 month agreement. The tip here is to be aware of your end of lease notices and prepare for the action needed.
3) Extremely Low Rates
Most leasing companies draw from the same source of funds so lease rates are fairly competitive in the market. You should take extra caution if a leasing company is offering you a lease rate that is significantly lower than other companies you have gotten quotes from.
One way a leasing company can represent a lower rate and payment is by disguising a fair-market value residual lease as a $1 Buy-Out lease. You may request a $1 Buy-Out, the leasing company may tell you that they are setting you up with a $1 Buy-Out residual, but the actual contract language may be very different. If a lease is set up with a fair-market value residual the payments over the term are lower than a $1 Buy-Out given the same rate on both. The payments are lower because you are essentially back loading the lease with a fair-market value residual.
If a leasing company disguises a fair-market value residual lease as a $1 Buy-Out lease then they can present a much lower rate. Upfront you will think you are getting a great deal on the rate until you reach the end of term and are surprised with a significant residual value to purchase the equipment. Instead of paying the dollar you were expecting you could be paying thousands.
The tip here is "If it sounds too good to be true then it probably is". To avoid this potential pitfall make sure the residual value to purchase the equipment at end of term is clearly defined.
Conclusion
Leasing equipment has significant benefits over paying cash and financing. In order to take advantage of those benefits you will want to safeguard yourself by doing the necessary diligence in reviewing your lease agreement prior to signing the agreement. You need to ensure that what is discussed and negotiated with your leasing company is properly represented in the agreement. A final word of advice, in most cases it would be beneficial for you to have your attorney review any and all agreements and contracts that you enter into.
Jimmy Chandler is the President and CEO of Forward Capital Group, LLC. Mr. Chandler is the co-founder and Managing Director of Forward Capital Group and is responsible for overseeing and running all facets of the business. Mr. Chandler has been in the finance and lease finance industry for many years and frequently writes articles and shares experiences in regards to lease financing.
Headquartered in Temcula, CA, Southern California's wine country, Forward Capital Group is one of the fastest growing leasing companies in the nation focused on providing leasing and financing programs to companies nationwide.

“We would be out of business without vendor financing” according to the president of a distributor of commercial strength and cardio equipment. Almost 65 percent of this company’s revenues are generated utilizing a vendor financing program implemented over ten years ago. Vendor financing programs provide manufacturers, distributors and dealers from a wide variety of industries the capability to offer customers a convenient way to acquire their products at the point of sale. A few of the key benefits vendor financing provides include:
· Improved vendor cash flow through pre-funding, or financing of the down payment, and reduced receivables through collection of the balance upon delivery of the product
· Improved margins and higher sales by focusing the customer on monthly payments instead of price reductions
· A faster selling cycle – fewer worries about whether your customer has the money in its capital budget or if they can (or will try to) find financing on their own
· Transfer of the financing risk to a third party through non-recourse programs
· The ability to open up new markets including selling your products outside the United States With programs that can provide financing in amounts as little as $5 thousand, vendor financing can be implemented to cover most asset types and a variety of customer credit profiles including start-ups and early stage companies. For amounts up to $100 thousand (and higher), many financings can be approved in as little as four hours after your customer completes a one page application. For larger transactions, approvals can be obtained as quickly as two business days following the submission of financial statements and tax returns. Lease terms can extend to 84 months for equipment with long useful lives sold to qualifying credits. According to a southeastern manufacturer of equipment, the flexibility, creativity and extraordinary support it enjoys through its vendor financing program provides it with a competitive advantage. Its vice president of sales firmly believes that choosing the right programs and leasing company can be the difference in winning a sales competition.
A few questions to ask in selecting the best leasing company for your business include:
· Flexibility – Can the financier fund my A, B & C credits? Can soft costs be included in the financing amount? Will all credits be financed without recourse to the vendor?
· Minimums and maximums – How small and how large of a deal can the financier fund? Any limitations on how much credit it can extend to any given buyer? Any overall minimum or maximum volume requirements to create a program for your company?
· Creativity – How many different programs structures and end user offerings can the financier provide? Will the financier create unique programs to meet the special needs of certain customers?
· Service – What levels of support do you require for sales, marketing, administration and deal structuring? Do your customers require a personal touch or will a highly automated system be a better fit with your sales methods? If you can visualize your company as a one-stop solution provider to your customer’s needs through having the ability to offer fast and easy equipment financing, then vendor financing may provide you with new and profitable opportunities.

If you’re ready to rent out your house or apartment, it is time to scout for the right tenant. Whether you’re a newbie or an old-hand to renting out properties, it is always a bit hard to determine if the person you find for your property is the right kind of tenant.
You have the right to screen and investigate your prospective tenants. However, to prevent misunderstandings and to avoid ugly surprises later on, here are some basic steps you can follow when doing your investigation:
First Time Call – Prepare a list of questions you want to ask when prospective tenants call in to find out about your property and also keep in mind all that you have to let them know regarding your rental. Prepare a comprehensive list of questions – eg. reason for moving, number of people, pets etc. Base your questions on the concerns that are relevant to you. Find out, if you can, what exactly they are looking for before you pass on details. This will give you an idea of whether or not they will be suitable for the space you have. Let them know about the rent and security deposit requirements and any other important conditions you may have - like regarding pets, smoking policy, etc.
When Showing Around – When you have tenants coming over to see your place, you bring out the guns to make sure that they like what they see. But don’t forget that it is a two way process. You too have to like what you see. Try and get to know as much about them while showing around, you may get a feel of the kind of people they are. Your prospective tenant is trying to make the right first impression. So it is up to you to see what is real and what is not.
Simple things a person does can say volumes about him/her. Apart from speaking politely and showing respect, see if the person behaves well too. For instance, did he/she wipe their shoes on the doormat before entering? Were they smoking when they first met you? Are the questions they ask about your property relevant or just things they’re picking on for later negotiations? Keep mental note of everything, as all these factors will play a role when deciding on the right tenant.
Application Form – Make sure the application form asks for all the possible details you'd want in screening the tenant. It's important to have a form which covers all points.
Once you have the completed form in hand, scrutinize it with absolute care. Make sure you run a credit report on the applicant for your safety. Also, make sure you get references from them and follow up on these references.
Finalizing the Deal – After you’ve made a decision let your prospective tenants know about it and tell them about any concessions you ‘made especially for them’ such as overlooking any minor credit discrepancies, etc.
Don’t forget that until both signatures are on the lease, you can still back out if the prospect doesn’t quite live up to your expectations. After setting the time, date and place for a meeting, inform them about the money they will have to bring and other documentation for verification.
Lease Document - The document should be up to the mark and cover your back in the eventuality of your tenant proving to be a nusiance.
Screen your tenants carefully at every given point and opportunity you get. You have every right to examine and select your tenant as long as you do not discriminate against sex, religion, beliefs, race etc. The tighter your screening process, the more likely you are to end up with a quality tenant and longer relationship.

Owning a new car is almost everybody’s dream. But only a few people can afford to buy a new car on a cash basis. Fortunately, car financing is readily available these days. As a result, more and more individuals have the privilege of owning a new car.
However, it is not easy to select a car, make a purchase, and then obtain car financing. Before you head to the local car dealer to buy the car of your dreams, you have to consider a lot of things with regards to car financing. You have to look into your credit score, compare car financing rates, and get pre-approval for your car financing application.
Your credit score has a lot to do with getting approved car financing because it reflects your credit worthiness. The lender will also look into this when determining your interest rates and down payment requirements. A credit score ranges from 300 to 600. If your credit score is above 600, you have a very good chance of getting car financing. However, if it is lower than 600, you need to spend several months paying your bills and increasing your credit score so you can qualify for financing.
After determining your credit score, you need to compare rates such as interest fees, fee structures, and down payment rates. Different lending institutions offer different rates. You should take your time evaluating each financing option so you can get the best deal.
After you have compared rates and picked your financing option, you can get a pre-approval for car financing. It is better that you have a pre-approved application before you go to the dealership so you can negotiate if you have cash in hand. This way, you may be qualified to receive rebates and discounts.
All these steps can help you to get the best car financing—and eventually, the best car—available.

When looking for a short term solution to your office space needs, you should be aware that you have many when it comes to leasing or renting office space. Whatever the reason, you need temporary or short term office space, you should know exactly how to find it, what your options are, what you should be looking for, and what you should avoid. This article is to provide you with all the information you need as your short term office space complete guide.
First, let us look at the meaning of short term office space. It is the idea that you rent or lease office space for a short period of time, typically between one month to one year. There are many reasons a business owner may choose this option. Perhaps, they have a large surge in orders and need to hire additional staff, or maybe they have run out of room and need a temporary solution until a more permanent solution arises. It could also be that they have too much inventory and need a temporary storage facility, so they might seek out short term office space.
Regardless of the reason, short term office space is the solution. So what are your options? Well office space comes in many forms, but the most popular is renting or leasing a modular office. A modular office is a temporary or sometimes permanent solution to those who need extra office space. They can come complete with electricity, heating and cooling, and all the space you need. For short term office space situations, you can rent or lease the modular office. What is great about these, if you have the room, they can remain right on your property which means all employees and business related activities remain within your reach at all times.
What should you look for in temporary office space? Well the first thing you want to be sure of is that it meets your needs. Make sure it has enough space to add productiveness to your business. Furthermore, it should be convenient in relation to the location of your business. Across town may be acceptable for you, however, in another town 50 miles away, simply would not benefit you or your business in any way, unless you had business to conduct in that area.
You should avoid long-term leases that require you to make payment for the entire term, even if you are not using the space any longer. Look for a lease with flexibility. If you sign a lease for one year, but after six months, you find you no longer need the short term office space, make sure the lease holds provisions in it allowing you to back out when needed. Furthermore, avoid office space that does not fit well with your business environment. Generally, for short-term leases, you will not be able to change any aspects of the environment, which means you have to deal with the current set up. You do not want a short term office space that makes things more difficult for you.

Prepare Paperwork in Advance
Think ahead and gather all the necessary paperwork that you would otherwise start looking for and writing down when the leasing company requests it. There are no mysteries about the required documentation. You’ll need to provide an actualized business plan, detailed information on what your equipment needs are and what the equipment will be used for, the market your company works in, the competition and your differences with them. You need also to include your credit history and commercial references, contact information for satisfied clients, providers and financial institutions that have helped you in the past.
Review Your Credit Position
Ask your accountant if necessary or whoever is in charge of the financial side of your business, for a report on your credit situation. The report should include, bank accounts, loans, lines of credit, assets, current financial performance, income, expenses (both including credit payments and not). With this information you can foresee which will be your financial needs in the future and what might be the answer of the leasing company to your requests. In accordance to this information you should see which leasing terms can be the best option for you.
Request Multiple Quotes
You can request free quotes from leasing companies prior to deciding who are you going to work with and what terms will you look for. You should contact different leasing companies and request several leasing options for acquiring the equipment you need. With this information you’ll be able to put together a better request when the time for actually applying arrives.
The more, the merrier
Don’t worry if you think you are providing too many references or too many information on your financial situation. Lenders tend to like this kind of behavior from applicants. It shows that you have nothing to hide and that you can provide proof that you are a good payer and someone to be trusted when it comes to doing business.
Nevertheless, make sure to filter out anyone you might have had problems with even if it was in the past. When contacting references, lenders have the ability to obtain this kind of information even if your reference is happy now with your services.
Last but not least, regardless of how urgent the leasing transaction is, you should always have the leasing contract reviewed by a legal advisor. Once a contract is signed it will rule the relations between your business and the leasing company for many years. Thus, it is not something to be neglected or not taken seriously. Think what might happen if the equipment turns to be of no use and you loose the deal you worked so hard to get!
Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders.

With the increase in the number of people who want to purchase a car through car financing, many car financing companies now go online to take advantage of the power of the Internet.
Over the years, car financing has changed a lot in order to cater to the people’s demand for a more convenient way of shopping for car financing options. And because of the Internet, online car financing is now widely available to those people in search for a variety of options.
Online car financing is very convenient. You can file your loan application over the Internet and shop around for a good deal from the comfort of your office or home. You do not have to visit your local car financing company because everything about car financing is already available to you online. You just have to email the company or contact their customer service representative for certain queries.
Aside from this, applying for online car financing is not as lengthy a process. What used to take hours can now take minutes because of modern technology. You can easily browse from site to site to compare car financing companies as well as their rates. You just have to read and understand the details about car financing included in the website so when you file your car financing application, you have a clear understanding of what you are getting into.
However, with the rise of scams on the Internet today, you have to be very cautious when selecting the online car financing company that you deal with to make sure you are not being taken advantage of. You should only deal with companies that publish their contact details on their website, including phone numbers, email addresses, the company’s address, and the name of the company head. You should find time to verify their office’s contact information in the phone directory or in the yellow or white pages. If the company is not listed, it could probably be a phony site.
Online car financing is indeed a more convenient way to shop for car financing options and compare car financing rates. Just take the time to do your research, as this will help you find the best deal for your car purchase.

Used cars are sold through franchise and independent dealers, rental car companies, leasing companies or second-hand car showrooms. You can even buy an old car from a relative, neighbor or network of friends. Used cars are now also available on the Internet.
Buying a used car can be tricky. A comprehensive research is advised to ensure that the car you are purchasing will suit your needs. Much information is available in car magazines and car websites. There are numerous ads in print and online. It is best to compare car models, costs, frequency of repair records, safety tests, and so on. Most importantly, you must make sure the old car you want will be worth your money. It is important to get hold of price quotations from as many sites as you can.
There are many available used cars for sale and choosing one may be complicated. You should start by knowing your budget and analyzing your needs and knowing the features you require. When you have an idea of the type pf car you want to purchase, you can start your search online for used car quotes.
Websites offering used car quotes may be direct sellers or referral services connected to a network of other car sellers. It is easy to get a quotation from these sites. You just have to click on a specific car type, make and model. You also have to categorize the year the car was produced and how many miles it has traveled. The site then gives you a quotation at once or emails you the answer to your request. You may also opt to choose from different modes of payment such as cash or loan.
When asking for a price quotation for a previously owned car, it is also advisable to ask for the specific warranty it entails. In addition, other sellers and dealers offer service contracts for a separate charge.

Getting out of a car lease implies the termination of the lease before the period is over. It is a difficult and complicated process to terminate your car lease before the end of the lease term. It is for this reason that many companies do not provide for lease transfers.
The easiest way to get out of a car lease is to get it transferred to another willing person. This is called lease assumption. A person wishing to terminate the lease may post advertisements on the Internet or in stores. If a person decides to they want the vehicle, the original lessee is contacted. Once all the terms are explained to the new lessee, the leasing company may begin the procedure to transfer the lease. The new lessee will have to pay the same amount per month as the original lessee. The name of the original lessee will be removed from all liabilities and will be replaced by the new lessee. Some leasing companies do require that if the new lessee fails to keep up monthly payments, the original lessee is held responsible.
Early lease termination is not an easy process. The monthly payment is calculated on the difference between the manufacturer’s suggested retail price (MSRP) and the estimated residual cost at the end of the term. It is this difference that is divided over the entire term. When a lessee turns in the car earlier, it has not yet depreciated to the amount that was estimated. This is an apparent loss to the lessee, but a car depreciates much more in the first year and is therefore a bigger loss to the leasing company.
If a car lease is terminated early, the lessee has to make all the payments for the remainder of the term. Early lease terminations also attract pre-penalty charges. These are charges that one pays when the car is turned in before the lease. Pre-penalty charges may be very high depending on the make of the car. They might vary from $200 to $400. There are also separate transaction charges. Hence, one cannot get out of a lease by paying the remaining payments.
Since many companies do not allow for lease transfers, there is no practical and cheap solution to wrangle out of car leases. If high monthly payments are the reason for wanting to get rid of the lease, then the lessee can speak with the company to extend the term. Extending the term will reduce the monthly payments.
When a person signs the lease contract, it must be remembered that this is a commitment that will last for the entire period of the lease.

When you lease a car you pay for the period that you use it. In other words, suppose a car costs $25,000 at the onset and it is leased for a period of 2 years. If its value at the end of 2 years were considered to be $13,250, you would have to pay $11,750. This amount would is payable in 24 equal installments with interest added.
When calculating the current value of the automobile, car-leasing companies take into account the capitalization price, also called the cap price or the lease price. This price could be lower than the manufacturer?s suggested retail price of the car, which is subject to negotiations.
The next step is the evaluation of depreciation during the period of lease. Depreciation is considered more in the first year of lease, about 30%. Then the next year it is 17%, a little higher than half of the first year. In the third year it is 8% and so on -- always-about half of the previous year. Depreciation is judged arbitrarily, as there can be no prediction about the future. The difference in the cap cost and the cost after considering depreciation is called the residual price.
Then comes the application of the interest rates. Every car has a number on it called the money factor. This money factor is a small decimal number that is multiplied by 2400 to give the interest rate. This interest rate is applied to the residual price, and it is divided in equal monthly installments.
Thus, when you lease a car, you can feasibly drive a new car every three years, or whatever period the lease is for. Financially speaking, a lease is cheaper than taking out a loan to purchase a car. If you pay some amount upfront, it makes the difference less and reduces the monthly installments. While leasing a car, it is better to make the lease period coincide with the warranty on the car. This way all the major repairs are covered by the warranty period. Leasing also proves less worry because once the lease period is over; you can simply trade it in and lease a new one. There is no hassle of having to get rid of the old car.
Like any financial benefit, leasing also has its problems. Even a zero percent lease is not zero percent. There is always a cost to be paid to the lease company. There are the taxes such as sales tax, deductibles, etc. There is even a tax on the monthly payment. Some leasing companies also set a limit on the mileage per year. If your car crosses that limit, then you end up paying extra to compensate for the wear and tear due to the extra damage. Lease companies may not refund the claim money if they think that the car has not been maintained properly. It is imperative to save all the bills of maintenances and repairs done to the car.
One should carefully weigh out the pros and cons before agreeing to leasing a car. Strictly speaking, there is no convenient way to wrangle out of a car lease. Trying to terminate a car lease before its period is over attracts hefty penalties and also spoils your credit record for your next purchase. It is essential to get all the facts about car leases before approaching a leasing company.

When it comes to leasing a car, your best bet is to lease a new one. Though it may cost more, it is a more practical decision. The primary consideration when you buy or lease a car should not be money - it should be the use that you can derive from it. A car fresh from the factory, generally gives you the assurance that all parts are in proper working condition. There is also a warranty that supports the car for a number of years - hopefully through the leasing period that will cover all major repair costs.
Leasing a new car does not require much financial expertise. You do want to be aware enough to haggle for the lowest possible deal so that the monthly payments will be lower. Depreciation is calculated on the estimated residual price of the vehicle when the lease period terminates. The difference has to be paid by the lessee. Once the price is settled, then papers are filled out and sent for approval. The deal is affected greatly by how good your credit is. Students and first-time lessees find it difficult to get a lease.
Monthly payments depend on a term called the money factor. This is a small decimal number, which when multiplied by 2400, gives the interest to be paid each month. An ideal deal is one in which the interest on a lease comes out to be the same as the interest on a normal loan.
While leasing a new car, it is important to remember that payments made every month will be significantly higher than for used cars. Depreciation is very high in the first year of purchase and is cut in half each successive year. That means for a short-term lease on a new car, the payment would be high. Add to that sales taxes, and you are paying a major bill each month for your car.
The satisfaction of leasing a new car is you are driving a new automobile with new technology. The car will also have a higher resale value at the end of the term should you decide to sell the car or trade it in for a new lease. New cars are easier to maintain and consume less fuel.

The minimum period for the lease of a new car from a dealer is 24 months. Despite that, a lease, which is given for any period less than 24 months, is called as a short-term lease. If there is a lessee who wishes to get out of a lease, and another wants to assume that lease, then the person who assumes the lease might get one for less than 24 months. This constitutes a short-term car lease.
Leasing a car for a short term is always more economical. For a person who assumes a short-term lease, there are plenty of advantages. If the original lessee has already made a down payment, then the assumer is saved that amount in monthly payments. Also, most of the insurances are already covered. The lease remains active for a few months, which means that there is less risk of damage and accidents. However, the short-term leaser would be responsible for any damage to the car done during the period of the assumption.
A short-term car lease also proves to be more economical than buying a car for a short time by taking a loan. If we compare the same make of vehicle, same time, same terms and same down payment, it is observed that a leased car will cost 30-60% less than a car taken on loan.
Since depreciation of a car is much more in the first year than in the succeeding years, it is better to go for a short-term lease after the first year is over. This makes it a slightly used car, but it saves a huge bundle in depreciation. It is better to not make it too late because the warranty period would be over and the damages would not be covered. Also cars become less reliable as they get older and need more maintenance.
In Europe, short-term car leases are available to tourists. There, short-term car leases mean anything above 17 days-- the minimum leasing period for a tourist. Renault, Peugeot and Citroen are the most popular short-term lease cars in France. They are very convenient for tourists, as well as students due to their pick-up and drop-off anywhere system. In most cases, the cars are not inspected when they are dropped off.

The basic difference between leasing a car and buying it is that the former pays for the period the car is used, whereas the latter pays for the entire cost of the car. Thus, if you lease a car, you only have to pay for the period that you are going to use the car. After the period is over, you can turn the car in and lease another one. But when you buy a car, you own it.
Suppose a car costs $20,000 and you lease it for two years. If the value of the car after this period, taking depreciation into account, were estimated to be $12,750, then you would have to pay only the value that you have used up. This would be $11,250. This amount can be paid in monthly installments. Many provinces add a sales tax to the monthly installments. However, in an outright purchase, you pay the entire cost of the car or take a loan to pay for it. To repay the loan, there are monthly installments calculated on the entire value of the car, which would be $20,000 according to the above example. So the installments on the loan would be significantly higher than those on a lease.
It all depends on the discretion of the buyer whether a lease or an outright purchase is more convenient. Leasing a car does not mean owning the car; it is more like renting a car for the particular period. A leased car is the dealer's property, and you are paying for the usage. You are required to take good care of the car. Dealers charge a deposit when you lease. If your records of car maintenance are not satisfactory when you turn the car in, you stand to lose the refundable deposit. Lease dealers also set a limit on the mileage of the car per year-- something like 12,000 to 15,000 miles. If you exceed this limit, then you have to pay 0.10 cents or more per excess mile. Thus, leasing does not work well for people who travel a great deal. It is understandable that an accident would terminate the lease on the car, and you would be obliged to buy it and finish paying for the lease. Making the lease period coincide with the warranty period of the car so that all major repairs are covered can easily prevent this.
When you buy an automobile, you are totally responsible for it after the warranty period is over. Loan payments also include depreciation charges because you are using the car. The remainder of the payment adds up to the value of the car, termed as equity. When you buy a car, you also pay a sales tax upfront, making it more expensive than the price quoted. There are also delivery charges. The advantage is you own the car.
Leasing entails some problems. For instance, the estimated depreciated value of the car is always less than what its market price would be. Imagine a car that costs $20,000, and its estimated value after two years depreciation is $12,750. In reality, the price would be higher after two years, say about $14,250. You stand to lose the remainder or $1500, even if you trade your car in or re-lease. Also, when you lease a car, it is wise to take out guaranteed auto insurance (GAP). This insurance protects you in case of theft or an accident during your lease period.
The dilemma of leasing or buying a car is ongoing. It actually depends on the person. People who do not wish to own a car, drive carefully, want lesser payments and have a penchant for changing cars every two or three years may prefer a lease. But, if you have an inclination to own your vehicle and don't mind paying a higher price, then you should purchase it outright.