Leases Leasing | Leasing Renting | Leases News

Experiencing the Magic of an Island Vacation Right at Home

2009-06-10T03:04:00.002-07:00

I was reading the Japan Times online a couple of days ago and an article about a small island in Okinawa Prefecture caught my eye. The article said that it is the perfect place for watching jets take off and land. The islet has been uninhabited since World War II except for a sports field and some stores. At one time, there were 30 households. Now the only people who visit come to spot the planes taking off and landing from the airport less than a quarter mile away.

It turns out that a hot spring was found on the island recently and the government wants to build a spa there with lodging facilities and develop the space as a tourist attraction. So, it will probably change the face of the area.

I was drawn to this particular article because it reminded me of one of my favorite places in Washington, DC to go to spot planes; Gravelly Point. It, too, is a small island. Well, it's not really an island; it is a park close to Reagan National airport that gives the feeling of being on a small island.

You can watch the planes take off and land and you are so close, the ground rumbles. It is one exciting place! The runway is only 400 feet away from the park. At Reagan National planes take off and land every 2 minutes so is there is a lot of noise and activity. In fact you can spend all day there and not notice the time and stress moving away.

It's a great place for thinking, for dreaming or just winding down from a day at your computer, especially if you are an entrepreneur working from home. It is like taking a vacation, except you are close to home.

The park is right on the Potomac River and the planes have to fly low and come down along to the river to land. They fly right over the park and it looks like you can almost touch them. (N.B. It is a weird feeling when you are a passenger coming in for landing to see you are flying right over the river.)

In spring and summer, you can lie on a blanket, picnic and enjoy being outside. You can see families with the kids running around. You will see people with dogs and bicyclers who come to watch and feel the excitement. You're home, yet you are not. You are experiencing the magic of an island vacation right at home. Great fun!

Angela Baden and Jamie Gray are ecommerce entrepreneurs with a great many interests. They write a blog that helps couples maintain a healthy loving relationship. See more on the blog. http://makingup4ever.com Angela loves plane-spotting, island vacations and vacations near home.

Article Source: http://EzineArticles.com/?expert=Angela_Baden

Know All About Adventure Holidays!

2009-06-10T03:04:00.001-07:00

There are innumerable holiday packages available these days. Adventure, religious, cultural, leisure and educational are some of them. Depending on your preference, you can choose any one. The best thing about these packages is they are planned in advance. Right from stay to the locations, everything is pre-determined. You need not run around to book accommodation. Everything will be taken care of by the travel agents.

They will arrange the whole thing on your behalf. They can even help you get a budget holiday. Whatever be your choice, you must think carefully. You must keep in mind the budget for the holiday package. In case, it exceeds and you are falling short of money, you may find yourself in trouble at a later stage. There are innumerable travel destinations all over India that offer unlimited adventure.

There are innumerable destinations in India. The varying geography offers you an opportunity to explore the terrains and mountains. You can have an experience of your lifetime. You could participate in different trekking expeditions, across various trails in the Himalayas. The region offers an excellent opportunity to scale the lofty mountains or have an adventurous streak in trekking.

There are various kinds of accommodation available. You can choose from a week to a fortnight plan. There are budget holidays available too for those who cannot afford to spend a huge amount of money. This will help such people save a lot of money and time. Travelling is huge industry that attracts a huge amount of revenue. You can have the experience of your lifetime by opting for such holidays. You can also get affordable tour packages. You also have the choice of trekking or climbing or going on a safari.

A traveller can look forward to excellent stay at any of the places. When it comes to accommodation, you can find international quality hotels. The destinations offer you a plethora of opportunities. You can experience the thrill. It is a good choice to take a break from the monotonous schedule of life and get into some action mode.

If you wish to travel abroad, you can approach a tour guide for help. They can let you know where to find the perfect stay and accommodation during your holiday. There are excellent adventure holiday packages available abroad. You could also experience the breathtaking Swiss mountains that are snow capped and witness a huge number of tourists every year.

Enjoy Rajasthan Tour at Its Best With Jaipur Attractions

2009-05-27T23:46:00.000-07:00

Jaipur, the land bathed in sheer royalty and beauty attracts tourists from across the globe. Culturally rich, this pink city of Rajasthan was fashioned in accord with the principles of Shilpa Shastra, the ancient Hindu text on architecture. Overflowing with glorious history and memories, the city offers an opportunity to experience the royalty of the past. The rich culture and historical heritage of this city is simply overwhelming.

Major attractions of Jaipur are:

City Palace
It is a must-see attraction of the city. A perfect blend of Rajputana and Mughal architectural styles, the palace encompasses stunning chambers such as Chandra Mahal, Mubarak Mahal, Diwan-e-Aam and Diwan-e-Khas.

Hawa Mahal
A mind blowing Rajputana architecture, Hawa Mahal has a unique architectural design. The walls of this multi-layered establishment are pierced with numerous windows, doors and perforated screens.

Jantar Mantar
It is the largest stone observatory in the world, which was the brainchild of Maharaja Jai Singh II. Located in the City Palace complex, this monument is a collection of several stone instruments that are used for measuring different astronomical phenomenon.

Nahargarh Fort
Built in 1734, Nahargarh Fort is beautifully built on a hill. Later it was given a face lift by adding some more structures to it. Overlooking Man Sagar Lake, the fort boasts of wonderful rooms and corridors. There is an interesting legend of the spirit of a prince attached to the fort.

Amber Fort
Consisting of a number of mesmerizing structures, Amber Fort reflects the wonderful Rajputana and Mughal architectural styles. The interiors of the fort are decorated with colorful paintings, carvings and semi-precious stone work.

Travel to Jaipur to explore its fascinating attractions, which are famous for their architectural beauty and glorious history. Destinations like Jaipur plays an important role in Rajasthan Tourism by offering great opportunity to tourists to experience the royalty of the past.

Article Source: http://EzineArticles.com/?expert=Sanjog_KR

Corporate Concierge is Not Only Meant For the VIPs But Also Can Be Offered to Customers

2009-05-27T23:45:00.000-07:00

Corporate businesses and operations are very complex and demanding these days. Highest professional standards must always be met under all circumstances. Increasing profit margin depends on the way each business is conducted, just as it depends on the manner in which corporate top clients are rewarded. Corporations always need to recruit new employees, just as they need to form loyal customer bases or reward top clients. The corporate concierge services are designed especially for these purposes. Moreover, any high-quality corporate concierge services must be tailor-made to meet the specific standards of performance of each corporation and ensure a professional working environment. High quality corporate concierge services provide the advanced means that all corporations need, whatever their industry may be.

Providing satisfaction and rewarding clients, they will always turn into loyal customers, and that is exactly what success in the corporate world needs. While many executives struggle to find the most favorable solutions that will ensure the diversification of their business operations and enhance cost-effectiveness, they sometimes fail to notice the importance of maintaining a loyal customer base.

From reservations at high-profile restaurants to luxury hotel reservations, from travel ticket reservations to private jet charters and yacht charters, the corporate clients can enjoy all the benefits of corporate concierge services all over the US and in many other countries worldwide. Characteristics that may seem almost meaningless, such as a taxi reservation or a restaurant reservation, can be very meaningful to clients and help corporations build strong relationships with their loyal customers.

In some states corporate concierge offer corporate clients a lot more than just a taxi reservation or a limousine rental. Everything one can think of in terms of corporate concierge anywhere around the globe is available at preferred rates and competitive prices.

Corporate concierge services include preferred rates and reservations at top luxury hotels and high-end restaurants, taxi reservations, limousine and car rentals, event ticket reservations, luxury gifts at the end of the year, preferred rates in luxury stores worldwide; in short, the corporate concierge services ensure that corporate clients benefits from all the top quality products and services typically offered by concierge service providers all over the world.

With the corporate concierge services, corporate clients have access to mobile applications whenever they travel, applications that allow them to make tee time golf reservations, reserve restaurant tables, receive free SMS reminders, as well as constant updates on weather, news, etc.

David Bard is a freelance writer, he has written articles on corporate issues like personal concierge, corporate concierge and employment issues.

Article Source: http://EzineArticles.com/?expert=David_Bard

Tips to Finding Student Property

2009-01-03T20:57:00.002-08:00

Over the coming years you will find that due to the government's aim to have 50 per cent of 18-30 year olds in higher education by 2010 accommodation for students will become harder to find. Currently finding a student property to rent shouldn't be a difficult task as long as you leave yourself enough time. By following some of the tips below you are almost guaranteed to be living in the perfect student property by the time your studying commences.

Most landlords who rent their properties to students do so from the 1st of July on a 12 month tenancy agreement, however you will find that these properties are being advertised from the start of January. This allows plenty of time for students to organise themselves and landlords to find tenants for the coming academic year.

There will be large numbers of students trying to secure accommodation after gaining exam results meaning you will need to act fast. You will be in competition to find the best of the remaining properties to rent, as a proportion will have already been reserved by second and third year students who have decided their current property is not suitable for what ever reason.

If you're a first year student you may decide to stay within the university grounds or in accommodation provided by the university. If this sounds like the type of digs you're after then contact the university accommodation office. If the campus or university digs are full ask for accommodation lists. This is a list of property which is accredited by the university of which the landlords details are usually made available, to allow you to contact the landlord directly.

Before you set off to look for your property you need to decided on what type of accommodation you would like to rent. If you don't know what's available to you, you won't be able to choose the best place to stay during the year.

Student digs come in all styles and sizes from purpose built flats with all mod cons to houses where all facilities are shared. Some properties are within easy reach of the university campusses others you may find are the opposite side of the city. Though you should find that rents are cheaper the further away from the campus you are, if the property is set up for students.

If you're looking to go into a shared house which is on the market for students you should find basic furnishings included, for example a bed, wardrobes, drawers, desk and chair with many kitchen accessories for shared use. It's common for properties to have a broadband connection.

Ask yourself if you're prepared to be a few bus stops away from the campus to be nearer the social zone or whether you want your own space to concentrate on studies. Once you know exactly what you are looking for start your search on the internet, you will find that this is the quickest route to finding suitable accommodation available. Make calls to estate and letting agents as soon as possible to book appointments. Once you have found the right property be sure to put down a deposit to reserve it for you and arrange to complete other necessary forms as soon as you can. If after viewing a property you decide to take a room see if the agent or landlord will be happy to pass on your details to other house mates so you can meet before you move in. Be sure to get a receipt for your deposit and ensure the room you're after is documented, as you don't want to find that there is a dispute when you move in.

Benjamin Perry CEO of online-lettings.co.uk The UK's specialist website where you can find local a letting agent or flats to rent. For more information on letting property visit our information centre at http://www.online-lettings.co.uk

Article Source: http://EzineArticles.com/?expert=Benjamin_Perry

Advantages of Renting

2009-01-03T20:57:00.001-08:00

Recent changes in the worldwide economic climate have prompted real estate developers to adapt to the situation. Prices in real estate property buying either for business or residential use have soared sky high, while resale values of previously owned properties have declined.

Increasing interest rates on mortgage have pushed other homeowners to apply for a second mortgage plan or home refinancing plan to keep up with monthly mortgages, fees, and sometimes even used to cover other expenses.

With the soaring prices of acquiring real estate properties and with its low resale value, more and more people are opting to rent properties instead of purchasing. The practicality of renting properties over the years has gained acknowledgment both in the business and residential categories.

Signing a lease requires lesser upfront charges as compared to making a downpayment for a real estate property. This scenario is ideal for new families who need not use a big chunk of their savings for a home. Start-up businesses would also benefit from opting to lease a space. Owning a property will tie-up their funds instead of allowing them to invest on other revenue generating endeavors.

The two mentioned above are simple examples, any type of family or type business should also consider renting for many other factors. One important factor that should be considered is location.

Real estate properties situated in prime locations are expensive. For residential properties, a family would of course want to reside in a location that offers proximity to schools, hospitals, commercial establishments, and other institutions. Buying a home that offer these characteristics would cost a fortune while acquiring a residential property in a prime location through a financing plan will definitely eat up a huge chunk of the family's monthly generated income. Renting a place that can satisfy these requirements will only cost the family a fraction of the expected monthly mortgage value.

For businesses, location is important for the business to grow. A business establishment must be within a prime location that is near its target customers. Signing a lease for a prime commercial space will allow the business to enjoy a lower monthly overhead as compared to covering monthly mortgage fees. Renting allows business owners to maximize capital and generate bigger profits.

Renting also provides the simplicity of fixed monthly costs. You can be assured that no other fees and interest charges will arrive within the span of the lease. This works especially well for families who have an expected fixed monthly income. For businesses, it allows business owners to project their expenses within a set time frame. Renting also allows the flexibility of choosing the cost of the monthly rental based on the income bracket. It allows businesses to project costs that may affect pricing of their products or services.

Maintenance costs for real estate properties also surmount to a huge amount. For leased spaces and homes, maintenance costs are often covered by the lease contract. It allows you a worry free stay in case there are some minor or major repairs that can be done like electrical, plumbing, roof repairs, and other fixtures that come with the space.

Rental fees are tied-up at a specific time-frame depending on the lease offer or on your preferred time span for the lease so that you can be assured that there will be no abrupt changes in monthly rental fees within that span. This protects you from unexpected costs that often home owners with mortgage finance plans experience due to fluctuating market rates. In extreme case, if ever rental fee does go up, you can always choose to move to a new place that can offer you a lower monthly rate.

Renting offers plenty of advantages for families and business. It allows the practically of having to choose a home or an office space without having to invest a huge amount and allows the flexibility of choosing a prime location that is most suitable for your needs.

Megatips.info is an information site with thousands of hottest tips, articles and how-to videos Megatips.info covers all aspects and topics such as how-to, home repairs, car repair tips, travel tips, finance tips, shopping tips, computer tips, career tips, golf tips, cooking tips, etc.

Vickie Tan is a college student majoring in English literature and working part-time writing informational articles.

Article Source: http://EzineArticles.com/?expert=Vickie_Tan

Baton Rouge Real Estate - A Rental Investment Opportunity

2009-01-03T20:57:00.000-08:00

If the capital and largest city in Louisiana beckons, that means you must be looking at Baton Rouge real estate. Located along the Mississippi River, the area enjoys hot summers and mild winters and the population is a mix of Cajun and Creole, of both Catholic and Baptist religious traditions. Because of the city's three universities, the number of students is high making Baton Rouge real estate a rental investment opportunity.

Regardless of the economy, real estate is still seen as an investment that will pay off over time, as it usually appreciates if maintained properly. Depending on the neighborhood in which you purchase a rental property, your potential return (in terms of rental income and/or resale) can vary greatly. An established area of middle-class homes is fairly risk-free in terms of stability, but might also see lower profit margins. If you do risk investing in a house located in a less affluent neighborhood, there's a real potential that it may develop quite quickly into a desired area of town, but also has a nearly equal chance of remaining static -- or worse -- deteriorating.

Although college and university students abound in Baton Rouge, the most stable renters are families (parents with school age children) and seniors, both of whom tend to rent long-term. Basing your search for rental properties within easy access to schools is one way to target this first segment of renters.

Remember to first ascertain the mortgage loan amount for which you qualify before you start looking at properties, and then aim for a purchase price that is between lower than that figure by between 10 or 20 percent. In other words, if you qualify for a $200,000 mortgage, look for a purchase price of between $160,000 and $180,000. Without exception, pay for a building inspection before you commit to purchase and if there are tenants, speak to them about any complaints or outstanding repairs.

RE/MAX of Louisiana (http://www.remax-louisiana.com/remaxla/default.asp?p=batonrouge-la-real-estate.asp) is a real estate brokerage that specializes in Baton Rouge real estate. Billings Farnsworth is a freelance writer.

Article Source: http://EzineArticles.com/?expert=Billings_Farnsworth

Equipment Leasing and Finance Association Services

2008-12-05T08:27:00.001-08:00

ELFA, also known as the Equipment Leasing and Finance Association, is an organization that, among other things, represents financing companies and manufacturers in the equipment finance business.

The organization is especially responsible for the advocation of commercial leasing. It has members from small businesses to Fortune 100 companies. Companies from the non-profit sector are also members.

A large amount of information can be found on the ELFA web site. One of the most interesting, as well as useful, things on the are the helpful articles they provide. These articles provide the consumer with information regarding many important business issues. One can find information about the basics and benefits of equipment leasing pros and cons regarding leasing vs. loans and specific leasing and financing options that are offered to consumers.

There is also a link on the ELFA web site for events and training. There are various events members of the equipment leasing community can attend, as well as appropriate trainings. Additional links on the web site offer press releases..

This web site also houses statistical and analytical information on equipment finance. The Equipment Leasing and Finance Association is renowned for being the premier source for statistics and analyses regarding equipment leasing and finance.

According to ELFA, approximately 1 trillion dollars worth of equipment is purchased annually, by companies in the medical, aviation and computer industries. Approximately fifty-five percent is financed via leases or loans. Therefore, it is important to note that it serves as an liaison between the equipment finance community and the federal government. This is to ensure sound business principles in regards to equipment leasing and financing.

To become an member of the Equipment Leasing and Finance Association, you can create an account on the association's web site. The benefits of becoming a member are extensive. You can benefit from obtaining information about research in the industry. There are also many email forums to facilitate discussions that are related to the leasing industry in general. When you register to become a member of ELFA, you can participate in tax, legal, accounting and general discussion groups.

If you are involved in the equipment leasing and /or finance industry, or want to lease business equipment, you may want to check out the Equipment Leasing and Finance Association web site. Source: http://www.leasingequipmentinc.com, Louis Zhang

Want to lease business equipment? Get a free guide to equipment leasing at Leasingequipmentinc dot com.

Article Source: http://EzineArticles.com/?expert=Louis_Zhang

The Basics of Automobile Leasing

2008-09-01T22:18:00.001-07:00

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.

Visit RoadBusters for more information and to chat about cars and other automobiles.

Article Source: http://EzineArticles.com/?expert=Tom_Clayson

Car Leasing Basics

2008-09-01T22:18:00.000-07:00

Over the past few years, the popularity of car leasing has soared. When you compare leasing with buying a car and suffering the humongous monthly installment fees, leasing provides a better and more viable financial option.

For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money's worth if you want to go for this option.

You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.

'Auto Leasing Defined'

You would "lease" a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car's value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.

Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.

If you decide to go for this option, you need to learn about "lease term". This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.

'Leasing or buying: Which option is kinder to your pocket?'

-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.

You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.

-Leasing companies would need to profit from you.

They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.

-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.

By making a note and comparing both prices, you would more or less have an idea of which option to go for.

'Car Leasing Tips'

- When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.

You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.

-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a "car-friendly" user when you opt to go for auto leasing.

-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.

-As much as possible, choose a shorter lease period. This is so that you can optimize the warranty of the vehicle.

-Finally, avoid the long-term leases, because the car's value will decrease by the time the lease ends, and this is mostly when engine problems begin.

Robert Thatcher is a freelance publisher based in Cupertino, California. He publishes articles and reports in various ezines and provides leasing resources on http://www.just-leasing.info.

Article Source: http://EzineArticles.com/?expert=Robert_Thatcher

What You Need to Know When Applying For a Lease With Bad Credit

2008-08-25T22:44:00.003-07:00

Did you know you might not be able to sign a lease with bad credit? This is true in many places. There are so many people who are checking credit scores now to determine a person's financial stability. It used to be that the only time your credit score was checked was when you applied for a loan or bought a house. The times are changing.

Now your credit history can be pulled for many reasons. Direct TV and Dish Network both run a credit check to determine what your deposit will be when installing satellite television. Other utility companies, like the telephone company, or electric company also do credit checks to determine deposits.

Some employers will check a credit file to determine if the job applicant is trustworthy. Many banks will not hire someone who has filed bankruptcy or had other financial problems. Some other companies are the same way. Usually these are companies in which the job applicant will be handling money or would be in charge of finances.

There are certain parts of the world, like in the UK, where someone who has filed bankruptcy cannot hold a position in parliament. Credit files are becoming more and more important in every day life.

Certain housing complexes will do a credit check to determine if you have ever been evicted. When trying to get a lease with bad credit, your chances may be limited. Other landlords are becoming stricter when it comes to screening tenants. Being able to check an applicant's credit file allows the landlord to see if there are past utility bills or other rental obligations the potential tenant had problems with. The credit file has become almost as important as a background check or police file.

When you apply for a lease, bad credit can lower your chances of getting it. However if you do not have bad credit and it is the credit history that was cited as the reason for denial, ask questions. You can obtain a copy of your credit report. This will allow you to see what others are looking at when it comes to your credit history. You can see if there is any information on there which should not be.

You have the ability to challenge any false or wrong information, but you must do so in writing. The credit reporting agencies are obligated to start an investigation to determine if the information is wrong. While the investigation is going on, the information will be removed from the credit history. If the information is found to be wrong, it will stay off. If the information is found to be accurate, the information will be put back on your file.

When you are denied a lease because of bad credit, you can take some action. Explain to the landlord the circumstances pertaining to the bad credit, lease for a shorter term to show your credit worthiness, or find a complex which does not require a tenant credit check. http://www.protect-your-credit.com can help you get started with your research.

Article Source: http://EzineArticles.com/?expert=John_C._White

Consider Leasing? Options Remain in a Tough Market

2008-08-25T22:44:00.002-07:00

All the talk lately that some automakers are discontinuing or reducing the availability for leasing their vehicles has some consumers in a quandary. After all, not everyone wants to actually "buy" a new car, preferring to rent one for a limited time before trading their car in. Leasing has grown to become a significant option for new car shoppers, but due to the rapid declining value of some vehicles, has become an unattractive option for financing companies, particularly those owned by the respective automakers.

Chrysler Discontinues Car Leasing

Chrysler made news earlier this summer when the company announced that they were getting out of the leasing business completely. Other automakers haven't been as rashly restrictive, but many have changed their leasing plans accordingly. This means that in many cases you'll have to put more money down in order to lease and pay a higher monthly payment -- changes which can impact your financial situation.

Because these changes have some consumers concerned, it is important for you to learn which automakers are providing leasing options to you. Furthermore, taking a closer look at the financial agreement you'll be signing when you lease will help you determine if leasing is right for you.

Top Ten Most Leased Cars

In July 2008, the following vehicles were in the most demand for leasing, according to LeaseTrader.com which tracks this information:

1. BMW 3 Series
2. Mini Cooper
3. Toyota Camry
4. Mercedes C Class
5. Cadillac CTS
6. Lexus RX Series
7. Lexus IS 250
8. Mazda CX Series
9. BMW X Series
10. Mercedes GL Class

Virtually every vehicle featured is a luxury model for the simple fact that they usually retain their value the best. The Mini Cooper is owned by BMW while the Mazda CX Series is one of the top selling crossovers available today while the Toyota Camry is the top selling car in America. The remaining models each appeal to high net worth people.

Ultimately, what this means for you is this: if you lease, your choices are much more limited than they were a year ago. Buying may not be option for you, but there are some vehicles which can still be leased without draining your wallet. Of course, if you've had your eyes on a Chrysler 300, then considering a car such as the Cadillac CTS could be the best way for you to go.

Copyright 2008-2012 -- Matthew C. Keegan is the owner of a successful writing and marketing business based in North Carolina, USA. He manages several websites and is a contributing writer for Andy's Auto Sport, a retailer of quality mufflers and exhausts.

Article Source: http://EzineArticles.com/?expert=Matthew_Keegan

The Advantages of an Auto Lease Calculator - First Time Lease Tips

2008-08-25T22:44:00.001-07:00

Dealers offer many different financing options these days and one of the most popular is a lease... but leases can be confusing because they use terms like money factor, and you get to pick how many miles you drive. Lets start at the beginning.

What Is The Money Factor?

The Money Factor is the interest rate in a lease. Where in a typical loan you might get 6% interest rate, that would equate to a money factor of 0.0025. This number is achieved by dividing the interest rate 6 by 2400. You can convert the money factor to a percentage by multiplying it by 2400. So if you are presented with a money factor of 0.00375 you could quickly find out that equals 9% interest. Money factors change depending on the term of the lease and the type of vehicle, so check around for the going rate.

Why Does The Payment Change For Different Lease Terms?

First mistake people make is figuring that the longer the lease the lower the payment. This is not always the case. There are many different factors that make up a lease, one of them being the term. The term of the lease (24 months, 36 month, 48 months) changes the depreciation amount of the car. Since a lease price is determined, for the most part, by the depreciation, the longer you own the car the more it will depreciate. Cars depreciate quickly the first year you own them and also the longer you own them. You will sometimes see that you can get a shorter lease term for less money then a long lease term. The typical "sweet spot" of the lease is around 30 - 36 months. This is usually where the best rate is found, but always get a few quotes for multiple terms so you can see as different cars have different "sweet spots"

Why Should I Care About The Miles I Put On A Car?

Once you have picked the car, and determined the lease term that works for you, the sales agent will probably ask the amount of miles you will be putting on the car. Most leases that you see advertised are for a small amount of miles, usually 10,000 or 12,000. This is something that dealerships will try to make sound very important, and often convince you to increase the pre-paid miles to 15,000 or more. This is only something to worry about if you intend to just turn the car in when you are finished with the lease. If you plan on purchasing the car at the end of the lease, or decide to trade it in for another car, you will end up wasting money, since part of the depreciation of the car is rated on the miles you "intend" to put on it. Which is why if you change from a 12,000 to 15,000 mile lease, your monthly payment will go up. Keep in mind what you intend to do at the end of your lease.

Most consumers do not just turn in their current lease, they end up buying another car and using their current lease as a trade-in. So you see, paying extra money for miles on a car is really not worth it for most consumers. By learning just these three things you can walk into a dealership with the understanding and knowledge necessary to get the best deal out there. Once you understand some of the fundamentals of leasing a car or truck, you will be well on your way to getting the best deal for you money. Never be afraid to ask questions and have the sales person draw out the details of the deal.

Using these three tips you can be the dealership at their own game...and above all else be sure to check out a good auto lease calculator before agreeing to a dealer's terms. Here is to leasing on your own terms.

Chris Richard

Want more info about how to Avoid Losing $1000's Leasing your next auto? I'll give you a sneak preview of my insiders guide, just visit the Car Leasing Black Book Website.

Article Source: http://EzineArticles.com/?expert=Chris_S._Richards

Equipment Leasing - Ask the Right Questions Upon Executing a Lease

2008-03-11T22:39:00.000-07:00

When your business needs new equipment, leasing can be a powerful tool to acquire the items you need. You can lease nearly anything including medical equipment, furniture & fixtures, HVAC, computers & software, phone systems, audio visual & sound equipment, specialty trucks & construction equipment, printing equipment, dry cleaning equipment, diagnostic equipment, manufacturing equipment, fitness equipment, office equipment, etc. Basically, if it's equipment that is the backbone to your business, you can probably lease it. The list goes on. Upon executing a lease, it is important that you ask the right questions. This is important so that you know exactly what your future holds regarding that equipment and so that you don't encounter any unwelcomed surprises.

First, what type of lease is it? Most small businesses opt for an operating lease. When executing this type of lease the leasing company retains title to the equipment and the user of the equipment (you) can reap the tax benefits. The payment is considered an operating expense instead of a depreciable asset. Another basic type of lease is a capital lease. This is actually very similar to a loan and the user of the equipment retains title to the equipment and it's therefore considered an asset on your balance sheet. The tax advantages are normally better with an operating lease and you also don't need to worry about getting stuck with obsolete equipment. Again, just ask the right questions when executing a lease.

Another excellent question would be, can I terminate the agreement early. If so, at what point can you do so and would there be any kind of penalty? This is important to know if you need to update your equipment or just simply get rid of it.

How long is the lease term? Typical lease terms are for 24, 36, 48 or 60 months (sometimes longer). It should be fairly obvious that payments are lower on the longer lease terms. Keep in mind that while the payments are lower with the longer terms, you end up paying more after all is said and done. Also, when pondering what term works best don't forget to consider your expected equipment usage lifespan. If you think you'll need to upgrade in 3 years, don't opt for the 5 year term without carefully considering the implications.

Also, find out about the buyout option. Some leases are set up so that at the end of the term, you can buy the equipment for one dollar. These are usually referred to as a buck out lease. When you choose this option, satisfy your lease term and execute the one dollar buyout you become the titled owner. Not bad. Normally, the monthly payments are a tad bit higher for a buck out lease than if you select one with a buyout at FMV or fair market value. This is exactly what it sounds like it is. You can buy the equipment for its current market value at the end of the lease term (really similar to a car lease). This will usually yield a lower payment than the buck out option. This is the best option if you know that you won't be keeping the equipment and will need to upgrade.

Leasing can be an excellent way to finance your business equipment needs. When using this approach, it's all about leverage. You have better tax advantages, you usually don't need to tie up as much of your valuable operating cash when you initially acquire the equipment, and you don't need to worry about being stuck with obsolete equipment. Equipment leasing is a fantastic way to finance your business, just be sure to ask the right questions upon executing the lease.

Leases-Leasing

2008-03-11T22:38:00.000-07:00

Are you looking to purchase a piece of yellow iron equipment or business equipment?

Obtaining business financing in the current economic climate can be a challenge because most lending institutions have strict lending requirements and only lend to companies that can show a sustained profitability and verified financial records.

So, where does this leave you? When you tried to get that loan, you were turned down. The traditional forms of financing aren't available for you. Ninety percent of small businesses can't get a loan from a bank.

There is a solution that is available to you. Equipment Leasing, it's a form of financing that is used by corporations to acquire equipment. What's the difference between a lease and a loan? When a company executes a lease the title to the equipment remains with funding source. This means that you are renting the equipment and when you finish making the payments you will own the equipment at a pre-determined purchased option. Most of the leases you will see will either be a $1.00 purchase option (buck out) or a fair market value option (FMV) not to exceed 10% of original equipment cost. When a company executes a loan, the title to the equipment remains with the company and the equipment is used as additional collateral for the loan.

WHEN YOU LEASE: There is usually NO down payment (its up to you), NO Blanket Liens, NO Financial Covenants, end user does not bear the risk of obsolete equipment, PAYMENTS ARE TAX DEDUCTIBLE, off balance sheet transaction and it does not affect your available credit

WHEN YOU OBTAIN A LOAN: There is a down payment required, a Blanket Lien is required, Financial Covenant is required, you bear all the risk of obsolete equipment, only partial tax deduction, shows on your balance sheet and it does affect your available credit.

Generally your money should earn you 30% annually. Let's take a look at how much money your company is losing by making a $50,000 equipment purchase as opposed to leasing.

EXAMPLE:

$50,000 (company money) X 30% = $15,000 income

Now calculate that 30% annual income of $15,000 over a 5 year period = $75,000

So, now you can see if you spent $50,000 on equipment, you would be out of pocket $50,000 and the 30% annual income over a 5 year term which is $75,000, you would be out of pocket a total of $125,000.

If you leased the equipment you would only have to put up one or two payments. These payments are a tax write off, so, which route would you follow?

Would you like to expand your business? Do you need an extra piece of equipment so you can start that new project that you were just awarded? If you could get that new piece of equipment, could you improve your business?

Financing can be arranged for customers that have had bankruptcies, tax liens, slow pays, judgments and repossessions. Assets qualify you, not credit scores.

KEEP IN MIND---each time you submit a deal to a leasing company and they pull your credit, your credit risk score is lowered. Be careful, or you may shop yourself out of any chance of obtaining your lease. Also an excessive amount of inquires will adversely effect you chances of being financed. Don't make a lender ask themselves---Why didn't any of these other companies finance this customer?

Our process is streamlined to facilitate lease approvals within 24 hours of receiving a completed application. Typically funding is done in five days, depending on the program that best fits your situation.

Benefits of Leasing Equipment

2008-03-02T21:17:00.001-08:00

Leasing equipment provides the lessee with all the following benefits of utilizing the equipment without having to pay the up-front costs or assuming the risk of ownership. A lease is one of the best ways for businesses to stay on top of the development curve. With so many new developments that occur (particularly in the technology areas) equipment leasing is less financially expensive.

Running a business means making sound financial decisions that improve the condition and quality of a business. Equipment leasing provides such a benefit along with:

Minimal Cash Outlay
Overcoming Budgetary Limitations
Avoidance of Obsolescence
Flexibility in Terms and Equipment
Conservation of the Business’ Working Capital
Increased Opportunities
Tax Benefits
Fast Applications
100% Financing

The minimal cash outlay allows a business to conserve their own capital. A lease also provides for servicing equipment failures. When managing a large computer room, owning all the computer equipment would place not only the upfront cost of purchasing the equipment, but also maintenance and repair as needed. Businesses that conserve personal business capital and lines of credit can handle the more mundane day-to-day expenses and unexpected events.

Budgetary concerns over new equipment purchases can be circumvented through equipment leasing. Operating budgets tend to be more flexible than a capital budget. The lease terms can be as flexible as required and are often negotiable on an individual basis. Lease terms are usually much longer than a standard bank loan, which makes their payment terms even better.

The ability to upgrade remains one of the best benefits of equipment leasing. Businesses grow; technology changes and the needs of both can change year to year. Equipment leasing allows businesses to benefit from developments on both sides of the aisle. Lease terms may also be structured to handle these changing situations.

Considering this multitude of benefits for equipment leasing, it’s not surprising that more and more businesses are reaching out to lease their equipment rather than purchase it. The benefits of leasing are not limited to the computer industry or to large corporations. Small businesses can benefit even more from equipment leasing than a large corporation may.

In a contest of leasing versus buying, leasing wins most of the time. Imagine the small business that houses only two employees. Their working capital may afford a couple of PCs and some exterior accounts to host a website. When a PC in the office goes down, if they are not leasing they will need to replace the machine. In general, the cost of replacing a standard PC is significantly lower than repairing one.

Small businesses need the ability to remain flexible, to upgrade and to keep their machines in maintenance and up to date. Even more than their corporate big brother, they need to know they will remain on the cutting edge of the industry in order to make better business decisions. A small construction company that has no access to certain types of equipment will not be able to take on more challenging jobs. The graphic’s designer that doesn’t have the equipment to support the latest software will find himself or herself less competitive. An accountant that doesn’t have the disk space to maintain growing accounts will have to turn away business.

Leasing equipment makes sense on a variety of financial levels, but also on levels addressing future growth. The business that takes advantage of these benefits are planning two steps ahead of their own niche market and will likely avoid being trumped by their competition. So whether a business is large or small, thinking ahead provides them with opportunity. What is the best benefit a business can receive from leasing their equipment? Opportunity.

Car Leasing Basics

2008-03-02T21:16:00.000-08:00

For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money's worth if you want to go for this option.

You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.

'Auto Leasing Defined'

You would "lease" a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car's value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.

Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.

If you decide to go for this option, you need to learn about "lease term". This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.

'Leasing or buying: Which option is kinder to your pocket?'

-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.

You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.

-Leasing companies would need to profit from you.

They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.

-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.

By making a note and comparing both prices, you would more or less have an idea of which option to go for.

'Car Leasing Tips'

- When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.

You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.

-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a "car-friendly" user when you opt to go for auto leasing.

-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.

-As much as possible, choose a shorter lease period. This is so that you can optimize the warranty of the vehicle.

-Finally, avoid the long-term leases, because the car's value will decrease by the time the lease ends, and this is mostly when engine problems begin.

Employee Leasing Services Booming As Business Owners See Increases In Their Bottom Line

2008-02-26T02:57:00.001-08:00

The reason for this trend is the need to outsource the frustrating "business of employment" tasks- such as hiring, human resource training, payroll, benefits and regulatory compliance. Between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds, according to the federal Small Business Administration. This same study estimated owners of small or mid-sized business spent up to a quarter of their time on employment-related paperwork.

Employee leasing companies assume much of this burdensome responsibility and help businesses comply with all regulations. The employer can then focus on the income-producing areas of the business, where he/she is the expert.

Another advantage of using an employee leasing company is their ability to arrange a business' workers' compensation coverage with major insurance carriers, as well as manage the claims. They also offer human resources services delivered by certified professionals. Most provide services such as customized employee handbooks, recruitment, pre-employment screening, wage and compensation planning, and assistance with job descriptions.

Employee leasing companies help tens of thousands of businesses provide benefits such as health care plans, 401(k) tax-free savings accounts and other perks to their employees. Sponsored benefit programs can include major and supplemental health-care choices, including vision and dental care, employee assistance programs and even adoption assistance. An estimated 95 percent of workers in an employee leasing arrangement have access to a pension plan.

Almost any business can find value in a PEO relationship- clients range from accounting firms and construction to manufacturers and government agencies. The average client is a small business with an average of 19 employees, but some clients have fewer than three employees. Increasingly, larger businesses are signing up, too.

The employee leasing company enables each client company to lower employment costs and increase their business's bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on the employee leasing company. Their professionals can provide critical assistance with employer compliance, which helps protect the client against liability. In fact, employee leasing companies have an 88 percent client retention rate due to strong client satisfaction.

Tips for Getting Approved Fast for Equipment Leasing

2008-02-26T02:46:00.000-08:00

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!

Is Leasing a Car a Good Alternative to buying?

2008-02-25T03:45:00.000-08:00

Leasing a car is basically “renting” a car. Normally there are terms of two to five years payments and then the car is returned to the dealer. Sometimes there is an option to buy the car at the end of the lease. After you negotiate a price with the dealer, the dealer sells the car to the leasing company and you pay the leasing company directly. Generally, a buyer should stay with what is called a closed end lease. Here you make payments over a fixed term with specific mileage limitations and then return the car to the dealer at the end of the lease.

Points to consider when determining whether to lease or buy:

• Do you dislike dealing with the trade-in process when buying a new car?

• Can you make a big down payment on a new car or not?

• Do you like to buy new cars fairly often?

• Do you drive under 15,000 miles a year?

• Is the car you are interested in fairly expensive?

If you answered “yes” to most all of these questions, you might be a good candidate for a lease.

Positive lease aspects

If you tire of cars quickly, leasing offers you the ability to get a new automobile every two to three years without big capital outlays.

Lease payments generally are much less on a monthly basis than loan payments. This has to do with how the payments are capitalized on a lease vs. a loan.

In most instances, the down payments are much less for a lease. In addition, that lease payment gets you a much nicer car for the same monthly payment.

There is no hassle to turn that leased car back in, unlike the trade-in process associated with a car that is bought.

Negative lease aspects

Leases can be very confusing to the average car buyer. Make sure the lease you are obtaining is well explained to you in all areas that need to be covered.

Watch out for penalties associated with the lease. Items like early return of the car or excess wear and tear can increase your holding cost by thousands of dollars.

Insurance to cover a leased vehicle can run more than the insurance to buy a vehicle.

Lease with the option to buy is normally not a good deal. If you think you want to own the car at the end of your lease, you are better off buying the car from the start. The option to buy at the end of a lease is usually much more expensive.

Lastly, leasing is good if you feel you will always continue to lease. But if you decide to buy your next car, you have no value in a trade in or sale for cash of the old vehicle.

So how do you lease a car?

First, you have to decide on the type of car you want. As you try to decide what kind of car you might be interested in, take a moment to think about your current car.

• What are some things you like about your current car?

• What would you change if you could?

• What do you want out of a new vehicle? (e.g., more passenger space, more prestige, better fuel economy)

The next thing you need to do is find out the total cost of leasing the car you want. The cost of leasing a particular car includes more than just the lease payment. Insuring the car is a very important factor to consider in the overall price. Once you have figured out as closely as possible the total cost of the lease, make sure you have taken in to account the price you would have paid for the car outright when negotiating with the dealer. That way you know you negotiated based on the actual cost of the vehicle. Bottom line, know the cost you would pay for the car before you start the leasing process.

Auto Leasing

2008-02-25T03:37:00.000-08:00

Leasing a new car can be tricky business. Often, buyers are lured by the low monthly cost of car leasing, but leasing isn’t always the best option. Experts agree that leasing is a good idea if you regularly change cars every 2 years and prefer to drive new cars. By leasing a car, you only have to worry about monthly payments and mileage limits – not about trade-in values or selling your car privately.

The advantages of car leasing become clear for most people who have bought several new cars in a relatively short period of time. Paying those high monthly payments can seem like a waste of your budget, not to mention the depreciation hit you suffer on trade-in. Most people who do trade their cars in every 2 years or so tend to see a car as a monthly expense as opposed to an asset anyway, so for them it makes sense to either pay less or get more car for the same amount per month.

On the other hand, car leasing is not the best idea for those who typically keep their car for more than 2 years. The biggest problem with car leasing is that it appeals most to those who can afford it least. Let’s look at an example. Say you bought a new car at a monthly payment of $400 per month for 5 years. Assume that the car will remain in good working order for about 10 years. That’s a total cost of $24,000 over 10 years, or $200 per month. Let’s assume that the car retained 15% of its original value when it gets traded in after 10 years of service and subtract the remaining $3,600 of value from the total cost. That brings the average monthly cost to about $170 per month. Obviously, a lease price of $250 per month would be no bargain, especially considering the fact that car prices go up and your payments will probably increase with each new lease.

Software Leasing

2008-02-19T02:19:00.000-08:00

Whether it is for large company servers or for household personal purposes, software solutions are becoming quite complicated, due to its high cost and installation charges. Among many options, software leasing is considered a smart and flexible tool to acquire expensive software solutions within one?s operating budgets. It provides opportunities for the users to employ most modern software tools without any substantial investment. When a software tool is leased, users pay only lease fee, and the annual payment is usually made over time. This enables companies to overcome budget limitations. Software leasing is mostly in the form of capital lease. But, in some instances, it is treated as an operating lease.

As it effectively solves business problems, software leasing is highly advantageous to both high-tech and domestic companies. The prime benefit of software leasing is that it does not require huge cash outlays, deposits or advance payments. This allows users to control costs and conserve cash reserves and equity position. Benefits also include lower technology acquisition costs, tax advantages, and preservation of working capital and credit line. In addition, software leasing ensures 100% financing of the cost of the software, since it is inclusive of consulting, customization, and training costs. Sometimes, options are available to own the license of the lease by purchasing software at fair market value at the end of the lease.

Leasing cycles and payments are negotiable and usually comply with debt covenants. Payments are designed in such a way that it can fit into any budget, and payment term generally ranges from three to five years. Software leasing services are generally made available by leasing companies and software developers. Some of the leading names in software leasing services are Cornerstone, LeaseSource and Coach Capital, LLC, SoftwareFunding, and PlanMagic. Most provide comprehensive lease finance solutions as well as complete network installations combined with flexible monthly payments and tax benefits.

Leasing Makes Startup Affordable For New Businesses

2008-02-19T02:18:00.000-08:00

Getting started in a business is almost a never cheap undertaking. Whether it's an office-related operation or a commercial construction company, there are equipment expenses that can prohibit startups from getting off the ground running correctly. But thanks to equipment leasing companies, the expenses can be a bit more manageable.

When it comes to equipment leasing, companies can rent just about any type of machine to get their jobs done. Heavy equipment, office machines and even coffee machines can all be leased. Whether it's a long-term lease or one just meant to help a company get enough working capital to make outright purchases, these leases can open doors for startups and even help longstanding companies save some money.

The advantages of leasing include:

* Easier access to needed equipment. Rather than have to pay thousands of dollars right now to set up an office with computers, a lease brings the monthly bottom line down to pennies on the dollar.

* Maintenance. Since the equipment is leased, maintenance and repairs are generally covered under contracts. There's no need to worry if a machine breaks, the lease should cover it and get the company back up and running quickly.

* No worries over replacement costs. If something stops working all together, there's no need to be concerned about having to shell out for another big investment. Replacements are generally included in the lease contract.

The types of equipment a business can lease are practically endless. They include:

* Office furniture. From desk and chairs to filing cabinets and even pictures, leasing is available to help businesses get off the ground. This helps a new company avoid a large capital outlay during start up and can result in a good looking office for a reasonable amount of money.

* Computers. Leases on technology are quite common in today's working world. These generally include help with basic programs and so on to really help a new business get up and running on the right foot right from the start.

* Other office technology such as faxes, copiers, printers and so on.

* Heavy equipment. From backhoes to forklifts, there are leasing options available on just about every piece of equipment imaginable. The advantages here can be great in helping a company avoid big capital outlays while still enabling them to get jobs done.

While it used to be most companies had to buy everything needed to get their jobs done and even open their doors, today's business world often revolves around leases. Providing a great way to ensure everything that's needed is obtained, these leases can be a real benefit to business.

When leasing, make sure you get the equipment you really need, read the contract fully and understand any maintenance agreements. Even for companies that intend to buy their own equipment eventually, leases can help a company get over the hump in starting out without having to have a lot of capital at the beginning.

All About Apartment Leases

2008-02-18T03:50:00.000-08:00

If you are getting ready to move into an apartment then you should educate yourself about leases. Many people don't want to be bothered reading it, but forget that a lease is a legal binding document and not every lease contains the same information. Before you sign one you should educate yourself on what they usually contain and what it means when you sign one.

For the most part the lease is the contract between yourself and the landlord which defines what you and the landlord can and cannot do. Once you sign the dotted line you are agreeing to the terms within the document so it is important that you read the entire document including the fine print.

For the most part all leases contain some standard information including landlord/tenant's name, rent amount, property address, security deposit and the start and end date of the lease. While these are pretty much standard in all leases here are some clauses that can also be seen in a lease:

1. Pet Policy
2. Consequences of Late Rent Payment
3. What services are included in rent (utilities, snow removal, garbage removal etc.)
4. Landlords right of entry

So when you have finally found the right apartment and it is time to sign the lease make sure you read it over carefully.

Car Leasing Secrets: Understanding Residual Values

2008-02-18T03:47:00.000-08:00

Lease-end residual values are very important in the calculation of monthly lease payments since leases are based on the difference between residual value and negotiated selling price. The higher the residual value, the lower the lease cost.

Residual values are usually expressed as a percentage of MSRP (Manufacturer's Suggested Retail Price) -- not negotiated price as many people often believe -- based on length of lease and average mileage. For example, if a vehicle's MSRP is $30,000 and its 36-month residual is 50%, assuming 15,000 miles per year, the dollar value of that residual is $15,000.

Residual values reflect anticipated depreciation of vehicle values over time. These values are estimated, based on a number of factors including annual mileage, number of months in the lease, vehicle make/model, past resale history, and expected future economic conditions. In short, setting residuals is an educated guessing process based on the best data available.

Residual values can be different depending on who is doing the estimating. One dealer who uses a particular lease company may offer a significantly different residual value than another dealer who uses a different company, for exactly the same vehicle and same lease. It is often misunderstood by consumers that residuals are constant and fixed for a particular vehicle make and model.

Lease companies often choose to use industry sources of residual data (ALG, Blackbook) rather than do their own research. However, they may adjust those values up or down as they see fit. It is very common for example to temporarily boost residuals for limited-time promotions.

Over the last few years, residuals have been abnormally high due to the extremely competitive nature of the automobile sales industry. This has been a great benefit to leasing consumers, but a financial disaster to leasing companies and banks. Many banks have now stopped offering leases, unable to keep up with the artificially high residuals still being offered by deep-pocket car manufacturers.

Many potential car lease consumers are often frustrated by not being able to predict exactly what residual value they might expect from a dealer. In this sense, residuals are much like interest rates on car loans.

Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions

2008-02-14T02:02:00.000-08:00

The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging existing venture capital. They have discovered ways to use this flexible financing as a tool to build enterprise value between equity rounds and to leapfrog less sophisticated competitors.

Venture leases and loans are usually asset-based, financing arrangements. These financings are available to qualified pre-profit, early-stage companies funded by venture capital investors. Start-ups need equipment and working capital to help them execute their business plans and to reach profitability. Venture lenders and lessors provide financing to these firms to help them acquire computers, lab and test equipment, production equipment, phone systems and other needed business equipment.

These specialty financing firms may also provide financing for working capital in the form of accounts receivable and/or inventory loans. Start-ups that qualify usually have promising business prospects, well-defined business plans and have raised more than $ 5 million in venture capital from reputable venture capitalists.

How are these savvy entrepreneurs using venture leases and loans to boost shareholder value and to gain an edge on the competition? Here are some of the ways:

1. To stretch equity capital and to increase shareholder value between equity rounds. By using venture leases and loans, entrepreneurs can forestall going out for more equity while they continue to build and increase the value of their companies.

2. Use of loans and leases instead of internal cash helps to stem negative cash flow. Most start-ups are faced with negative cash flow until revenues build sufficiently to cover costs. Using limited internal cash for equipment purchases, to invest in inventory or for accounts receivable is not wise, if there are better options.

3. To protect working capital. Purchases of intermediate-term assets with internal cash will remove those funds from working capital. Use of venture leases and loans helps to keep the pressure off of working capital as the cost of these assets gets spread over an extended period.

4. To supplement other capital sources. Venture leases and loans supplement equity capital, mortgage financing and other financing available to start-ups.

5. To liberate cash from equipment, accounts receivable and inventory already financed internally. By doing a sale-leaseback, the start-up can liberate cash from equipment already owned. Likewise, the start-up can finance inventory and accounts receivable that have been funded internally by using a venture loan.

6. To bridge-finance equity transactions. Occasionally, start-ups are able to obtain short-term loans to bridge upcoming equity transactions. These loans are usually well secured by all-asset liens against these companies and are generally available for short time frames. Most venture lenders who provide this type of financing require equity kickers in the form of warrants to purchase stock in the start-ups or stock issued directly to them by the start-ups.

7. To hedge against rapidly depreciating equipment. Venture leases can be structured as fair-market-value leases. These leases usually allow the lessees to renew the leases at fair-market-value renewal rates, to purchase the equipment at fair-market-value purchase prices, or to return the equipment to the lessors at the end of the leases. The return option allows the start-ups to conveniently dispose of obsolete or unneeded equipment.

8. To replace venture capital. Start-ups are using loans in the form of subordinate debt as a substitute for additional equity rounds. These loans can be collateralized or unsecured and can be used for many of the same purposes as equity funding – to continue product development, to add key personnel, to expand marketing and to support sales efforts. Venture lenders generally charge a premium rate for these loans and require sizeable equity kickers in the form of warrants or ownership shares in the start-ups. These loans are generally cheaper than equity financing and may amortize faster.

9. To spread equipment cost over the productive life of the equipment. By being able to spread the cost of the equipment over an extended period, start-ups can get productivity out of these assets while they pay. Paying for the assets out of internal cash has just the opposite effect.

10. To quickly build out infrastructure to allow all employees to be more productive sooner. Venture leasing and lending allow start-ups to add computers, phone systems, networking equipment, software and other business essentials quickly. Employees can be more productive sooner and benchmarks can be reached faster.

Using venture leases and loans is a smart choice for savvy entrepreneurs. It allows them to build substantial equity value with minimal dilution. These arrangements usually do not require board representation or loss of management control. Start-ups are able to add needed equipment and finance working capital with lots of flexibility. Additionally, these forms of financing are significantly cheaper than the likely alternative, more venture capital financing. Savvy entrepreneurs have discovered these advantages and are using them to put their firms ahead of the pack.

When Does Leasing Beat Auto Loan Financing?

2008-02-14T02:00:00.000-08:00

Whether leasing is advantageous or not will depend on your particular financial situation, on your needs as a driver, as a tax payer and eventually as an owner. By leasing a car you agree to a series of terms that you should be well aware of before even considering undertaking a leasing contract. This is due to the fact that leasing is only advisable under the right circumstances. Otherwise, compared to auto loans leasing is far more expensive on the long run. Thus, you’d better analyze your situation carefully prior to deciding what to do.

Car Leasing Explained

When you lease, the financial institution is the proprietor of the vehicle and remains proprietor of the vehicle till the car is finally purchased. During the leasing contract you get to drive the vehicle and use it with some restrictions (according to the leasing contract). The limitations are similar to those imposed for the ones that rent vehicles and basically depend on the financial institution stipulations (for instance, there are usually certain mileage-per-month ratios).

In exchange for using the vehicle, the applicant has to pay a monthly installment that is normally just a bit higher than a rent payment. Eventually, the lease taker is entitled to purchase the vehicle and in that case, the monthly payments are considered as part of the payment. Thus, the applicant has only to make a lump payment at the end of the leasing term to keep the vehicle or else, he returns the car, renews the contract or exchanges the car for another vehicle.

Benefits of Leasing Over Auto Loans

Leasing provides several benefits that makes this financial transaction more advantageous than purchasing a car with an auto loan under the right circumstances. For instance, the payments’ amount is significantly lower than the loan installments and only a bit higher than renting.

Moreover, since the car remains property of the financial institution, there are tax benefits too. Part of the payments of your leasing contract can be deducted from your tax presentations. And last, but not means least, getting approved for leasing is far simpler than qualifying for a car loan. There are not harsh credit requirements for approval. You’ll only need to show proof of your ability to afford the monthly payments of the leasing contract.

The Right Time For a Leasing Contract

When is leasing advantageous? There is no single answer to this question. If you lack certainty in your financial life, if you don’t know what you are going to earn then next semester or year, you won’t commit to a loan for purchasing a car that you might lose due to your lack of ability to repay the loan. Leasing provides more affordable payments and you can start saving as much as you can for the final lump payment if you want to keep the car.

Small Businesses Benefit From Outsourcing Human Resources to an Employee Leasing or Peo Company

2008-02-13T02:15:00.000-08:00

Employee Leasing is not a totally new concept. It has been tried and proven by some of today's leaders and most profitable companies. It can help to stabilize your costs and insulate you from unexpected increases, which can send your profit margins tumbling.

Employee leasing can provide "top of the line" benefits packages with a number of employee health insurance options, complete payroll services, personalized reporting and administrative services.

Most employee leasing companies maintain a "minimal" administrative, sales and marketing staff in order to keep overall costs down, and in turn, "employee leasing costs" to their clients.

Employee leasing is a cost-effective convenience for any small business owner. The reductions in cost are made possible through volume discounts by pooling your company's employees together for worker's compensation, health, dental, vision and life insurance benefits, state taxes, S.U.T.A. taxes, federal taxes, etc. Paperwork hassle and time consuming follow up are reduced, and sometimes eliminated, because the employee leasing company does the work for them. All payroll related taxes, filings and reports are also handled by the employee leasing company, leaving the business owner free to take care of the things he or she went into business for... Making A Profit! And remember, leasing your employees takes care of most of the human resource paperwork, thereby allowing the owner to reduce, or possibly eliminate human resource staffing, adding up to more savings!

Single-Payment Car Leases - Good Deal or Not?

2008-02-13T02:14:00.000-08:00

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.

Leasing a Car Has Advantages and Disadvantages

2008-02-11T03:02:00.001-08:00

Buying a car is expensive; there is no getting around that. It's easy to pay as much for a new car today as one might have paid for a house a generation ago. But they are more complicated than they used to be and they are safer, too. Still, there is the matter of the money, and if you don't have a lot to spend you may be considering leasing instead of buying. The low monthly payments offered with leases can be appealing, particularly if you are on a budget.

But there is more to leasing a car than just the low payment advertised in the commercial on TV. Anyone who is in the market for a new automobile should consider the pros and cons of leasing a car as opposed to buying one.

Here are some of the good points about leasing a car:

# The payments are lower – Sure, the payments are lower; you are only paying for the portion of the car's value that you are actually using, and not the car itself. The lower payments could help budget-minded shoppers, or they could allow the consumer to make a deal on a more expensive car than he or she might have otherwise purchased.

# Less cash outlay – It's possible in many cases to lease a car with less out of pocket cash than a purchase requires. This could help some shoppers who don't have a lot of cash for a large down payment.

The drawbacks to leasing include:

# Excess mileage fees – The lease spells out how many miles you may drive per year; if you exceed the total over the life of the lease you will have to pay extra. That extra fee could be as much as 25 cents per mile and some leases permit as few as 10,000 miles per year. If you drive a lot and you fail to consider this, you could be paying a lot of extra cash at the end of the contract.

# Early termination fee – If you have to end the lease early, the fee charged could be huge. How large? You might have to pay everything owed on the remainder of the contract. Even if you don't plan to end the contract early, it sometimes happens in the form of auto theft or an accident.

# You don't have a car – This one seems obvious, but with a lease, you don't actually own a car. When the contract is up, you give it back and you have nothing tangible to show for the money you have paid. You may, of course, purchase the vehicle for an agreed-upon price, but otherwise you will find yourself, once again, without a car to drive.

7 Advantages to Leasing Equipment for Your Cleaning Business

2008-02-11T03:00:00.000-08:00

All small businesses need equipment and your cleaning business is no exception. But you don't necessarily have to buy the equipment to run your cleaning business successfully. Depending on your circumstances, leasing may be a better choice than buying every piece of equipment you need for your cleaning business.

What is a lease? A lease is an agreement in which you have the use of a piece of equipment, but you do not own it. The user (the lessee) makes payments to the owner of the equipment (the lessor). Leasing has become a common business practice. The U.S. Small Business Administration (SBA) reports that equipment leasing has risen about 20 percent over the past two years. And, according to the Equipment Leasing Association, 8 out of 10 U.S. businesses lease all or part of their equipment.

There are several advantages to leasing equipment:

1. Leasing is flexible. As your business grows your needs may change. Leasing allows you to add or upgrade equipment. Lease terms vary from 12 months to 60 months. You may even be able to upgrade your equipment during the original lease period.

2. Capital conservation. In today's financial environment, you can lease equipment with little or even no money down. If you have to borrow money to buy a piece of equipment you may have to put money down that you could have used in other areas of your business, such as marketing or wages. Leases generally require little or no down payment so it is likely you may be able to get more equipment or higher quality equipment than you could by buying.

3. Fixed predictable payments. When structuring the payments of a lease, look for fixed, monthly payments. This will protect you against rising interest rates and help you to project your cash flow outlays.

4. Leasing is cost-effective. Equipment in itself is costly and can also incur unexpected breakdown or repair costs. Most leased equipment is maintained and repaired by the owner of the equipment.

5. Tax advantages. Operating leases are generally 100 percent tax deductible as a business expense and are paid out of pre-tax earnings instead of after-tax profits.

6. Not having to deal with obsolete equipment. In today's business society, manufacturers constantly upgrade equipment and add new features. By leasing you can always be using the most up-to-date equipment. You also are relieved of the problem of getting rid of an outdated piece of equipment.

7. Convenience. Applying for a lease is generally easier than applying for a loan. Loans generally require large amounts of paperwork and copies of financial reports or tax returns. A lease agreement typically involves a brief application form and may not require supporting financial documents.

Before leasing, go through the following list of questions from the Equipment Leasing Association:

Before Leasing:

1. How am I planning to use this equipment?

2. Does the leasing representative understand my business and how this transaction helps me to do business?

During

3. What is the total lease payment and are there any other costs that I could incur before the lease ends?

4. What happens if I want to change this lease or end the lease early?

5. How am I responsible if the equipment is damaged or destroyed?

6. What are my obligations for the equipment (such as insurance, taxes and maintenance) during the lease?

7. Can I upgrade the equipment or add equipment under this lease?

After

8. What are my options at the end of the lease?

9. What are the procedures I must follow if I choose to return the equipment?

10. Are there any extra costs at the end of the lease?

When leasing equipment it is important to understand the terms of the lease. Getting answers to the above questions will help you get all the information you need about your lease and avoid surprises or hidden costs after you sign the lease.

With leasing you do not own the equipment, but your cleaning business has the advantage of using the latest equipment and staying on top of technological advances. With the many benefits of leasing, it may be a better choice for your company than the outright purchase of an expensive machine.

Car Leasing Fraud - How Not to be Taken For a Ride

2008-02-08T02:42:00.000-08:00

Car dealers many times resort to some common tricks to fool you into a lease when it may not be your best interest. For that reason, it is important that you understand how the leasing process works and to be able to make your own choices, without the car salesman's help. In this article, we will disclose the top crooked techniques used by car dealers. Any one of these could cost you an arm and a leg. Just think how bad it could be if a crooked car dealer used more than one of these fraudulent leasing techniques on you.

1. "We will accept your old car as a trade-in, pay off your existing loan balance, regardless of how much you owe, and get you into a new vehicle for lower monthly payments."

This is definitely a bad deal. The reality of this situation is that if you owe more money than the value of your trade-in, the dealership will add the difference and factor it into the lease payments on your new vehicle. Your total monthly payment will likely be lower than you expected.

2. "We will make the remaining payments on your old lease if you lease a new car from us today."

Another crock! The reality of this situation is that the dealer is simply making your remaining payments and returning the car to the leasing company for you. If the vehicle has excessive mileage or wear and tear, the leasing company will hold you responsible for this and not the dealer. Should the dealer fail in making those final payments, the leasing company will hold you responsible and not the dealer. If the dealer fails to return the car to the leasing company, again the leasing company will hold you responsible. Moreover, the dealer will most likely add all or part of those remaining payments back into the price of your new car.

3. "You will get a nice 3.4% rate on this lease, which is better than our loan rates."

Sounds great, right? Wrong! That 3.4% rate sounds attractive except that it is not an interest rate that they are giving you. The rate you are given is the lease's money factor which is more commonly written as .0034. To convert this figure to annual interest rate, multiply by 2400. Therefore, a .0034 money factor is equivalent to an 8.16% interest rate on an auto loan.

4. "We will accept your old leased vehicle as a trade-in and give you a good deal on a new lease."

Trading in a leased car is a bad idea. The reason is that many people will not have any equity in their old leased car to help them buy or lease a new car. Many problems can arise from this situation. At worst case, the dealer takes your old leased vehicle and returns it to the leasing company, who will send you a bill for early termination or buyout. Or, the dealership can put the car on their used car lot after buying the car from the leasing company and adding the buyout cost, less the trade-in credit, to the price of your new vehicle. If you have reached the end of your lease and have no equity in your leased vehicle, it is better to return the car to the leasing company.

5. "Leasing is better than buying because you can swap cars anytime you want."

Yeah, right! Dealers are well aware that some people like to swap cars often and want the flexibility to get out of a lease when they choose to do so. Leasing allows people to do that. What the dealership hides from you is that leasing is designed in a way to make it hard and expensive to close the lease before the normal end date.

6. "Leasing is better than buying because the monthly payments are less for the same car."

This fact is true that lease payments are less than monthly purchase payments. This allows dealerships to suggest that leasing is a better deal. However, the reality is that dealerships many times stretch out the lease term to 60 months or more to make the payments even lower. If you drive 15,000 miles or more per year, then leasing is definitely not for you. The dealer may "forget" to explain that to you. A 60 month lease on a vehicle that only has a 36 month warranty makes you prone to expensive car repair costs for a vehicle that you do not own.

7. "Leasing does not show up as a debt liability on your credit report because it is similar to renting."

Nothing could be farther from the truth. Leasing is not like renting. Leasing does show up on your credit report as a debt you must pay just like a loan. If you are late making payments, your credit record is blemished, just like with a loan. If you are concerned about your load of debt, then do not consider leasing a car.

8. "The best way to get a new car is to lease first and then buy the car at the end of the lease."

Not true. Although leasing offers lower monthly payments, purchasing the car at the end of the lease adds more to the cost and makes the total cost of the lease-purchase option scenario greater than if you had bought the car at the beginning. Do not allow an underhanded car salesman convince you that the extra cost is non-existent.

9. "Factory rebates and price discounts do not apply to leasing."

Many car dealerships take advantage of their customers who are not cognizant of the leasing process. Some will tell you that leasing is always based on a "sticker price." This is a bunch of B.S. Leasing is always based on negotiated, rebated, or discounted price. Do not allow a dealership swindle you this way.

10. "All our leased cars must have extended warranties, rust proofing, paint protection, maintenance contracts, and window etching."

This is another deceptive tactic used by dealerships. The reality is that these are just options and not requirements, but the dealer is hoping that you do not know that. Leasing companies do not require you to have these options that the dealer may suggest. Dealerships are only interested in padding their profits as best as they can.

Real Estate Investing: Percentage Leases

2008-02-08T02:40:00.000-08:00

Multiple tenant commercial real estate buildings that house retail shops or shopping malls are usually leased to the different tenants. They operate several diverse businesses under the same roof using a percentage lease. In a percentage lease, the owner is paid a base rent plus a percentage of the tenant’s gross receipts. The rent is determined by the amount of business done by the lessee. This type of lease is used most commonly by a single entity that rents or leases a multiple tenant commercial building leased to numerous retail shops or shopping malls, as they are more popularly known. Investors see percentage lease as benefiting both the owner as well as the tenant.

The owner has superior returns, whereas the tenant has the advantage of a lower rent structure. The percentage charged is usually 10% to 12%, and is paid annually, semi-annually or quarterly. Some other owners demand even on a monthly basis. It depends on the type of property, the location, its desirability and the sales volume of the lessee. This type of lease requires that the tenant periodically keeps furnishing the gross receipt to the owner, which may be a deterrent and may cause tenants to change their mind about agreeing to the lease. They have to produce their sales books, IRS form attachments or their sales tax records.

Types of Rent Discrimination and Percentage Leases; The one main advantage of a percentage lease is the risk sharing by the landlord and the tenant. The landlord will benefit if he discriminates in charging rents to different tenants. In simple rent discrimination, the landlord charges each tenant under the same tenant classification such as boutiques a particular rent and other such classifications of tenants’ different rents as per the nature of the business. In perfect rent discrimination, each tenant is charged a different rent to ensure the landlord gets the maximum profit.

The tenants do generally not prefer percentage leases but they will comply if the owner of a desirable, well-suited and well-located property demands it. The tenants have to comprehend the terms of the lease before they sign it. They have to be very specific in making clear what accounts for the gross receipt, which can exclude some items such as returned goods, delivery and installation charges, sales tax, mail order sales etc. and other such deductible items as per the nature of the business.

Percentage leases are also used in the farming sector where owners receive a percentage of the crop grown and harvested; the owners make profit by selling his percentage of the crop. The normal percentage lease usually charges 30% to 40% depending upon the quality of the farmland. The percentage lease is therefore not a very popular type of lease.

Take Over Car Leases

2008-02-06T03:57:00.000-08:00

Taking over a car lease means assuming someone else's leased car with the same terms that were originally agreed upon. People who are unable to maintain their car leases often advertise in the classifieds or on the Internet.

Usually people who opt for takeover car leases are those who wish to have a car for a short term with low monthly payments. Takeover leases are short term because a portion of the lease period is already. Sometimes the original lessee has to pay some amount as a down payment when taking the car in order to reduce monthly payments.

A takeover car lease seems to be a win-win situation. The takeover lessee must be certain that monthly payments can be made. Leasing companies will not lease to anyone who has bad credit and if the new leaser fails to meet payments, the company may hold the original lessee responsible

There are also technical issues. When the car is taken over, it is very imperative to check for wear and tear. A mechanic should check the car at the dealers. Everything must be checked from the components to the upholstery. Anything amiss will be the responsibility of the takeover lessee to repair and maintain. The new lessee will deposit a claim amount and the original lessee will get an amount refunded. Also, the bills of all maintenance and repair works must be taken from the original lessee.

The mileage must be checked. Leasing companies lease their cars with an annual mileage limit. The takeover lessee must check how many miles are left, because each excess mileage will attract a charge of 0.10 cents upward when the lease is over. In order to secure more protection, the takeover lessee must take an added insurance for the vehicle. Check whether gap insurance is in effect, as it would protect the vehicle from accidents and thefts.

Apartment Hunting 101 - Your Leasing Agent

2008-02-06T03:55:00.000-08:00

"Looking for an apartment can be a time-consuming and sometimes overwhelming experience. Trying to sort through all of the different apartment listings can be quite tedious and deciding which ones are truly worth your while can be difficult. Since so many of us are dealing with busy schedules, it is difficult to find the time to look at different apartment listings and to try to coordinate your schedule with the schedules of various landlords. Therefore, if you are looking to simplify the process while also increasing your chances of finding your dream apartment, it is a good idea to enlist in the services of a leasing agent.

What is a Leasing Agent?

A leasing agent is a person that actually works for the landlords of apartment complexes, shipping centers, and office buildings. The primary job of a leasing agent is to help the landlord find tenants. When the leasing agent successfully finds a tenant for the landlord, he or she receives a commission. The leasing agent also takes care of finalizing the leases. As such, the landlord relies upon the leasing agent to find good tenants that are willing to pay a fair price for the apartment.

What Should I Expect from a Leasing Agent?

Just as a real estate agent is hired to represent the person selling the home, a leasing agent is hired to represent the landlord. Therefore, you are responsible for trying to negotiate the best deal possible. After all, the leasing agent is going to try to get the best deal for his or her client as possible because this will result in a larger commission. In order to guarantee that you are properly represented, you might want to higher an agent to represent you.

How Can I Be Sure to Get the Apartment I am Looking For?

In order to make sure you find the apartment you are looking for, you need to have a clear idea of what you are looking for when you approach the leasing agent. This includes knowing how much you are willing to pay, the size you are looking to rent, where you prefer the apartment to be located, and the amenities you want to be included. If you are a pet owner, you will also need to bring this to the attention of the leasing agent.

By putting together a comprehensive list of what you are looking for in an apartment, you can simply submit this to the leasing agent and ask that the agent contact you with a list of apartment options that fit your criteria. Once the leasing agent supplies you with a list, you can select the ones that are of the most interest to you.

In some cases, the agent will only provide you with the apartment information and you will be left to look into the apartments on your own. In other cases, the leasing agent will actually take you to view the various apartment rentals on the list. If this is important to you, be sure to deal with an agent that will take this extra step for you."

Lease or Buy? That is Always the Question with Car Financing

2008-02-05T02:48:00.001-08:00

Leasing is a perfectly viable and legitimate way to finance a new car. Although leasing offers attractive benefits, it is somewhat more complex than buying with a loan. This means there can be pitfalls if a decision to lease is made for the wrong reasons.

Therefore, a comparison of leasing versus buying is always a useful exercise when considering automobile financing. One option will generally be decidedly better than the other in any specific situation.

Let's first look at the financial side of the analysis.

Leasing always results in lower monthly payments than a conventional automobile loan, assuming the same vehicle, same down payment, same interest rate, and same term. Lease payments will be as much as 60% less than loan payments. Therefore, if monthly payments are your most important consideration, leasing is a good financial option (although there may be other reasons you shouldn't lease -- see below).

However, in the long term, leasing actually costs more than buying assuming that the buyer keeps his/her vehicle for a long time after the loan has been paid. It doesn't take rocket science to figure out that leasing a new car every two or three years costs more than buying one car and keeping it until it falls apart. So if long-term cost is your highest priority, then leasing is not for you.

Even if leasing makes financial sense to you, there may be reasons that it won't work for you.

If you drive more than about 15,000 miles a year, leasing is not a good option for you. The reason is that leasing is designed for people who typically drive only average miles and don't want to pay for the entire value of a vehicle. They only pay for the relatively small part of the value of the vehicle that they actually use.

Leasing may not be a good option, too, if you don't typically maintain your vehicles well, carry only minimum insurance, like to modify your vehicles, or prefer the idea of ownership.

Furthermore, if you expect lifestyle changes (marriage, divorce, job change) that might cause you to want to end your lease before its normal end date, don't lease. Leases are designed in a way that makes it both troublesome and expensive to terminate early.

Take Over Car Leases

2008-02-05T02:46:00.000-08:00

Buying A Car - What Is The Best Finance?

2008-02-04T02:43:00.000-08:00

Your car is one of the most expensive purchases you will ever make. Probably the only thing you will buy that costs more than your car is your house. You wouldn’t just accept the first mortgage you came across, and likewise you shouldn’t just accept the first vehicle financing option that comes your way. You will have a lot of options in how to finance your car. You can buy the car outright. If you would like to opt for this, you will need to borrow the cash in the form of a bank loan.

This should generally be medium term, over period of about two to five years. It is generally not advised that you secure borrowing over your home but this may be necessary in order to get the loan or in order to get a better rate. Shop around for the best rate, from banks, other lenders and also on the internet. Rates will vary widely so it is a good idea to shop around as much as possible.

Leasing

If buying the car outright in this manner is not an option, you may wish to consider leasing the car. Leasing will never make you the owner of the car. You pay a monthly fee, every month for the period of the lease, and at the end of this period, you give back the car and walk away. Leases have a number of advantages over buying the vehicle. The payments are generally lower as you are not paying for the entire value, just for the price of leasing it.

You also don’t have to worry about selling the car when the leasing period is over, as the dealer owns it. Leases may also include a buying option at the end of the period, which will allow you to buy the car if you want to. The one thing to be careful about when leasing is that there may be heavy penalties for early termination.

Some Advantages

The other popular type of vehicle financing is dealership financing. With this option, the car dealer arranges the car financing. They will sometimes offer very attractive rates as they want to encourage people to buy the cars, however, sometimes their rates are extremely bad and you will want to be familiar with what’s available from alternative sources before opting for dealership financing. Some advantages of dealership financing will include convenience, multiple options, and special offers on selected models.

Car Leasing Basics

2008-02-04T02:34:00.000-08:00

Your Accountant Will Agree: Leasing a Car For Your Business is the Way To Go

2008-02-02T02:32:00.001-08:00

One of the many important financial decisions of a business owner is whether to lease or purchase motor vehicles for the business. RK Auto Group recommends leasing for several reasons: Leasing strengthens your financial statement and upgrades your company’s image by providing sharper-looking vehicles at a cheaper price.

Most accountants agree: your financial statement looks rosier with vehicle leasing. Financial benefits of leasing include:

* A better tax write off - you can deduct actual payments instead of using a depreciation schedule
* Clearer bookkeeping - while a lease is simply an expense on the financial statement, a purchase is an asset and a liability
* More borrowing power – with a lease, you can keep lines of credit open for other expenditures; a purchase of a vehicle ties up those loan options
* Preventing negative equity - this happens when you purchase a car: sometimes the market conditions make the vehicle worth less than the debt owed on it
* When you don’t have negative equity you have less to negotiate in leases

Leasing improve your company’s image as well as its bottom line. When you lease a vehicle, you don’t pay for all of it. You only pay for the part of the vehicle you use. This means:

* A lower monthly payment
* You can afford a more expensive vehicle to better represent your business (and it’s more fun to drive!)
* You drive a new vehicle more often: a 48-month lease costs the same monthly amount as a 60-month purchase of the same vehicle!

Make sure to lease from a reputable dealer for consistent, high-quality service. When you lease a vehicle, you form a strong relationship with the leasing representative, because you work with the same person on every lease. Leasing provides a satisfying experience as well as great financial benefits to your company.

Leasing Makes Startup Affordable For New Businesses

2008-02-02T02:31:00.000-08:00

When it comes to equipment leasing, companies can rent just about any type of machine to get their jobs done. Heavy equipment, office machines and even coffee machines can all be leased. Whether it's a long-term lease or one just meant to help a company get enough working capital to make outright purchases, these leases can open doors for startups and even help longstanding companies save some money.

The advantages of leasing include:

* Easier access to needed equipment. Rather than have to pay thousands of dollars right now to set up an office with computers, a lease brings the monthly bottom line down to pennies on the dollar.

* Maintenance. Since the equipment is leased, maintenance and repairs are generally covered under contracts. There's no need to worry if a machine breaks, the lease should cover it and get the company back up and running quickly.

* No worries over replacement costs. If something stops working all together, there's no need to be concerned about having to shell out for another big investment. Replacements are generally included in the lease contract.

The types of equipment a business can lease are practically endless. They include:

* Office furniture. From desk and chairs to filing cabinets and even pictures, leasing is available to help businesses get off the ground. This helps a new company avoid a large capital outlay during start up and can result in a good looking office for a reasonable amount of money.

* Computers. Leases on technology are quite common in today's working world. These generally include help with basic programs and so on to really help a new business get up and running on the right foot right from the start.

* Other office technology such as faxes, copiers, printers and so on.

* Heavy equipment. From backhoes to forklifts, there are leasing options available on just about every piece of equipment imaginable. The advantages here can be great in helping a company avoid big capital outlays while still enabling them to get jobs done.

While it used to be most companies had to buy everything needed to get their jobs done and even open their doors, today's business world often revolves around leases. Providing a great way to ensure everything that's needed is obtained, these leases can be a real benefit to business.

Leasing vs Buying - Basic Facts About Leasing

2008-02-01T02:06:00.001-08:00

When you are willing to buy something and you fall short of cash, leasing is always a better option than buying. That is, it is advisable to lease what you require. Thus, depending on the current situation and your needs, you must consider leasing equipment instead of buying them.

In the present scenario, leasing is indeed a very common practice in business. According to a report by the U.S. Small Business Administration (SBA), equipment leasing has risen approximately 20 percent over the last two years.

Some of the basic facts about leasing are as follows:

• Leasing is essential at every stage of development in just any business.

• In case of start-up businesses that have no revenues, smaller leases of approximately $100,000 or less can be easily managed. If the owners are willing to make monthly payments, the lease may be better managed on the personal credit of the owners.

• Equipment leasing is essentially a loan. At the end of the lease, the business can either purchase the equipment for its fair market value (or a fixed or predetermined amount) or continue leasing. It can also opt to return it or lease new equipment.

• Lease vs. Loan: Unlike a bank loan or any other debt, a lease is not cancelable. A loan can be paid off by selling the equipment. Alternatively, it can also be refinanced. On the contrary, in case of a lease, the lease should be paid off in full. That is, all the payments must be done when one enters a lease. Moreover, lease payments are smaller than the loan payments.

• Leasing vs. Buying: In case of buying, when a piece of equipment or vehicle is bought, the payment for it is supposed to be done in full either by using cash or by financing the balance. Once the payment is done, the buyer owns the equipment or the vehicle. On the other hand, in case of equipment leasing, the equipment is bought and owned by the lender and then it is rented to a business at a monthly rate for certain number of months. In other words, with a lease, one has to pay merely for using the equipment as at the end of the lease, the lender ends up owing absolutely nothing.

Technological Benefits of Equipment Leasing

2008-02-01T02:04:00.000-08:00

Technology provides a needed and powerful edge in business; the following points examine those benefits and let you decide how these benefits provide you with the needed edge in business. An equipment leasing arrangement provides you the edge you need without running the expensive costs associated with purchasing state-of-the-art equipment.

Wider Options, Lesser Costs - With an equipment leasing arrangement you are free to select your choice of equipment without paying the full price. This advantage also comes with the fact that most business equipment leasing companies will often handle everything from the maintenance to the deployment of their equipment. Your company can save the costs associated with the equipment as the leasing company usually gets price cuts on equipment and related services since they buy in bulk.

State-Of-The-Art Equipment - When a commercial equipment leasing company provides your business with equipment they provide the best. They do this because unlike your business, equipment leasing is the only business they do and their competition is steeped in proving you the best equipment at the lowest prices. If they don’t provide the best equipment at the best prices their competition takes over, so the company paying for leasing services gets all the related benefits of getting the best equipment at a cheap price.

Flexible Arrangements - With an equipment leasing arrangement, financing is according to your convenience. Financing can be arranged according to the way you intend to use the equipment and the cash flow of your company. You can also renegotiate the terms of your lease if your circumstances change and this comes without any repercussions. Some commercial equipment leasing companies also handle the insurance of their equipment so insurance costs for your leased equipment is not a problem.

Equipment Leasing Options

With the various equipment leasing companies available there is hardly a fixed set of leasing options. Companies will provide leasing options and tailor them according to the needs of their customers. In this equipment lease guide we have selected some of the most common business equipment leasing options available, which can be found across a variety of equipment leasing companies in the U.S. today.

The Capital or Finance Lease offers the lessee the option to buy the equipment at a much reduced rate at the end of the lease period. This equipment lease is also referred to in some quarters as a nominal buyout lease. With the Sale-Leaseback Lease the company buys the equipment it requires and sells it to the leasing company. The equipment leasing company can then lease the equipment back to your company or business for its normal use. The Municipal Lease option is available to public agencies as well as non-profit organizations. If your company falls into these categories you can make inquiries concerning this option. With the Deferred Payment Lease, the first monthly payments of such leases are usually deferred to a period of up to 90 days before the lease starts. With the Seasonal or Skip Payment Lease, the lessee pays for the lease at peak periods of the operating year, which are defined at his convenience. With the True Lease, the lessee may choose to return the leased equipment on conclusion of the lease or may buy the equipment at a fair market value price of the equipment. With the Graduated Lease, the leases start off with small monthly payments that rise according to the level of increasing income your business generates.

Leasing Makes Startup Affordable For New Businesses

2008-01-31T03:09:00.001-08:00

Oil And Gas Landman - Part 2

2008-01-31T03:08:00.000-08:00

After the Landman determines who owns the minerals of the land then are trying to lease, it is then time to contact the mineral owner about obtaining a possible lease. During this initial conversation the Landman will explain to the mineral owner who they work for and start the negotitating process. If the land in question is a small tract (less than 10 acres) the Landman might be able to negotitate the lease on the first contact. Larger tracts may take more time and more visits including in person visits to persuade the mineral owner into signing.

The price offered per acre will be given by the company the Landman is working for. They will usually give you a range per acre and it is best to start at the bottom of the range because the money will probably have to go up from there. Contacting the large land owners first is a good idea because this will tell you if they have been contacted previously about leasing and also the Landman will want to get the large mineral owners leased first before others find out about what they are doing and start leasing the land themselves. If the Landman starts contacting alot of people and other oil companies find out, they will start leasing the land which will cause the Landman problems in obtaining all the leases and also will cause him/her to pay more money per acre.

After the mineral owner has agreed to lease, the Landman will get the lease signed and recorded at the courthouse. Once again, you don't want to record your leases in the early part of the process because this will give away what you are trying to do. Once all the land has been leased, you will turn the leases into the company you are working for and your job is basically done. The company will probably want you to do some reports to finish the process and maybe even pull the land transfers to give to the attorney who will be reviewing the title of the land.

Ten Reasons Why Companies Lease

2008-01-30T01:33:00.000-08:00

1. Purchasing Power. Equipment lease financing allows the lessee to acquire more and/or higher-end equipment.

2. Balance Sheet Management. Certain types of leases help the lessee better manage the balance sheet and improve the overall financial picture, by conserving operating capital and freeing up working capital and bank credit lines for inventory, expansion and emergencies.

3. 100 Percent Financing. With equipment leasing, there is no down payment. The term of the lease can be matched with the useful life of the equipment.

4. Asset Management. A lease provides the use of equipment for specific periods of time at fixed payments. It assumes and manages the risks of equipment ownership. At the end of the lease, the lessor disposes of the equipment.

5. Service Additions. Many lessees choose to structure their leases to include installation, maintenance and other services, if needed.

6. Tax Treatment. Leasing offers the option of deducting 100 percent of the lease payment as a business expense.

7. Upgraded Technology. Leasing provides companies with the ability to keep pace with technology. The lessee can upgrade or add equipment to meet ever-changing needs.

8. Specialized Assistance. Lessors are specialists in equipment leasing and financing, and understand capital equipment markets.

9. Flexibility. There are a variety of leasing products available, allowing the lessee to customize a program to address needs and requirements- cash flow, budget, transaction structure, cyclical fluctuations, etc.

10. Proven Equipment-Financing Option. Over 30 percent of all capital equipment in the United States is acquired through leasing. In fact, eight out of 10 companies lease their equipment to include vehicle assets. Leasing keeps a company out of the vehicle business.

I have served the fleet management industry for many years offering my consulting services to any company looking to find ways to improve fleet efficiency, lower fleet operating costs, and reduce administrative burdens of internally managing company vehicle fleets.

Bad Credit Car Leases

2008-01-30T01:32:00.000-08:00

Auto leasing is gaining popularity among consumers in the US, because it offers them a chance to drive the cars they want -- often better cars than they can afford to buy. Low monthly payments are a big attraction of auto leasing. However, leasing cars could be an expensive proposition in the long term and may not fit everybody's needs. It is advisable for people to determine their priorities and ensure that leasing is the right solution. In line with the aggressive strategies that leasing companies adopt to attract new consumers, there has been a trend in the US of leasing companies being willing to offer bad credit car leases.

Past history as a defaulter or irregular payments of previous loan installments is termed as bad credit. This creates problems when buying or leasing a car or any other asset. However, with increasing competition, banks, finance companies, car manufacturers and dealers are willing to take risks in order to get more customers.

However, this does not mean that it is entirely smooth riding for people with bad credit. Typically, leasing companies charge higher interest rates leasing cars to people who have a poor credit history. Certain specific leasing terms such as a higher down payment or security deposit are designed to reduce the risk of the leasing company. There are many leasing companies in the market who are willing to offer their services to people with bad credit or even a past bankruptcy record.

Car dealers and their associated finance companies are not the only source of loans and leases. For people with bad credit, it's very important to shop for the best rates because banks and finance companies are not consistent in the terms they offer. It is advisable that consumers make personal visits to these institutions, so that they can explain their case face-to-face. This goes a long way in improving their chances of being successful in getting bad credit car leases.

Fast Cash Leasing

2008-01-29T01:32:00.001-08:00

Leasing is an arrangement that provides a firm with the use and control over assets without receiving title to them. A leasing is a written agreement allowing the use of the assets for a specific period of time. The lease is signed by both the owner of the assets (the “lessor”) and the user (the “lessee”). A contract of lease may be defined as a contract whereby the owner of an asset grants to another party the exclusive right to use the asset usually for an agreed period of time in return for the payment of rent.

There are four types of fast cash leasing. The short term and cancelable lease agreements are called operating leases. Important features of operating lease are: they are convenient and offer instant services to the lessee. Examples include hiring a computer, a tourist hiring a car etc. This type of lease does not give the lessee all the benefits that are associated with the asset.

Financial leases are non- cancelable and are for a long period of time. Examples include leasing a plant, land and building etc. Financial leases are used to amortize the cost of the asset over the entire term of the lease. Capital lease is a long-term irrevocable lease agreement. In this type of fast cash leasing all the risks and responsibilities of leased property are to be borne by the lessee. Finally, there is leveraged leasing. Under this type of lease agreement, there are three parties such as the lessor, the lessee and the lender. This type of lease agreement is popular in leasing out at a very high value.

Leasing arrangements allow for the quick and easy acquisition of fixed assets by the lessee. Leasing companies are more accommodating than the banks in extending assistance. Secondly a lease arrangement provides for the better and alternative use of funds. The payment of lease rentals is tax deductible, thus causing less tax payment.

Types Of Car Leases

2008-01-29T01:30:00.000-08:00

When leasing a car, individuals need to be familiar with the different types of leases that are available. Consumer leases essentially come into two categories, namely, open end and closed end. There is a substantial difference between these two categories; this difference needs to be understood before signing the lease contract. According to the federal regulations, it is imperative to mention the lease type on all contracts of leasing.

Open-end leases are used in commercial business leasing purposes. The lessee, instead of the leasing company is liable for all the financial risks in this kind of lease. However, this is not considered to be too much of a problem as the cost can be expensed, as the annual mileage on a business lease is usually much greater than a non-business lease. The lessee is also responsible for paying the difference amount between the actual market value and the estimated value once the lease period is over. This difference can reach to a substantial amount of money if the car's market value has dropped significantly or it has been overdriven. An open-end lease is considered much less risky, as the interest rate is much lower than a closed-end, non-business lease. However, the monthly payment of an open-end lease is more than that of a closed end one.

Closed end leases, also known as "walk away" leases are the most common of the present consumer leases. A closed end lease simply allows the lessee to return the vehicle once the lease period ends without any other responsibilities to take care of except paying for extreme damage to the car or additional mileage charges. The number of miles driven by the lessee is usually predictable in closed end leases; thus, the value at the end of the lease period also becomes predictable unless the car is driven in abusive or excessively rough conditions.

While leasing, the leasing company estimates the car's residual value and then prepares the contract. However, it is essential to read the contract properly before signing it in order to avoid complications at the end of the leasing period.

Non Recourse Factoring vs Recourse Factoring

2007-07-10T02:10:00.001-07:00

There are very few things more important to a new, starting small or medium business than cash equity. There are many things that count as equity for example business equipment, cash on hand, line of credit, and even invoices. That's right! Invoices can be a means of equity for almost any business, but getting a working cash flow is usually only possible through recourse or non recourse factoring.

What exactly is non recourse factoring? How does non recourse financing differ from recourse financing? Is non recourse financing right for your blooming business? Let's take a few moments to explore the answers to these fascinating questions.

Factoring is a means of getting a cash advance on payable invoices. Factoring companies hold the payable invoices, and the business gets the much needed cash. When the debtor pays the invoice directly through the financing company, and monies remaining are then given to the business. There is a fee, of course, for this service, and the service has two types of factoring coverage: recourse and non recourse.

Recourse financing translates to what the meaning of recourse actually is in and of itself. When recourse financing is the term of the cash advance on payable invoices, should the debtor of that invoice not pay his or her invoice, the factoring company has "recourse", or the option, to get the monies owed directly from the business receiving the cash advance. Recourse financing means the business is held liable for the future payment of the payable invoice.

On the other hand, non recourse financing is similar but different. With non recourse factoring, should the debtor of the payable invoice not come through on the payment(s), the business is not responsible for the cash advance amount or fee. Instead, in non recourse financing, the financing company is held liable for receiving payment from the payable invoice.

Both types of factoring are popular, and usually, a financing company only does one. However, more and more financing companies are choosing to offer both services to their customers. Since recourse financing is less dangerous for the factoring company than the alternative, factoring companies are choosing both as a viable option for your cash advance needs.

As may be obvious, non recourse financing has a higher liability than the recourse financing to the factoring company. This means it is easier to get a recourse financing cash. Nonetheless, getting a factoring loan will have a lot of different factors taken into consideration such as credit rating, cash amount of the invoices available, and/or time business has been in business.

Finding a good financing company will be the best way to decide this answer. Factoring companies have different requirements and offers, and finding out whether financing is right for your growing or established business is only determined by speaking directly with a reputable factoring company.

Asset Based Factoring - A Beginners Guide

2007-07-10T02:09:00.000-07:00

There are few things more exciting, compelling, or time consuming as having a new business trying to get past its first year successfully. Established businesses and new businesses share many things in common, but an established business is less likely to have issues with immediate cash flow. Either way you look at it, asset based factoring is a great way to get working cash flow out of assets immediately instead of tomorrow.

What exactly is asset based factoring? Asset based factoring is a method of selling payable invoices to a factoring company at a loss of the total due on the invoices. Selling those invoices is a great way to get working capital out of payable invoices due in the future.

There are many reasons invoices may be due in the future - accounts to be paid on a regular basis such as weekly or monthly, lines of credit offered, or invoices yet to be sent. All of these reason are just the beginning as to why people have invoices due. If you do a lot of business with debtors paying in the future instead of today, asset based factoring may be for you.

If you find you may benefit from asset based factoring, there are some basic consideration to keep in mind.

Understand The Lingo
Understanding the lingo of the factoring industry will insure you get the most out of the experience. Knowledge is power. Without knowing what is being said, you and your business are at the mercy of the factoring company.

Rates And Fees
The obvious profit for the factoring company comes in the terms you receive. There are rates and fees usually associated with the amount of the invoices. Nevertheless, many factoring companies are starting to offer a set rate no matter how much you receive for the invoices. Of course, this is good because it offers those with a high value of invoices a lower fee; and this is bad because those with a lower value of invoices pay a larger fee. Make sure you know which one you are dealing with.

Read The Fine Print
As is a necessity for anyone, reading the fine print is extremely important. Just because the person helping you fill out the paperwork is friendly and sociable does not mean they may either forget or neglect to mention important aspects of the transaction. Ask questions if you are unsure of what is meant; if your questions are not answered to your satisfaction, do not do business with that factoring company.

Time Limits
Many factoring companies only allow for invoices payable with 2 weeks; some factoring companies allow for invoices payable within 90 days. Make sure to ask.

Liability
Ask the factoring company who is liable for invoices not paid by the debtor. There are some factoring companies offering asset based factoring who do not require the business to pay the invoices. Instead, these non recourse factoring terms mean the factoring company will hold the liability of collecting the debt directly from the debtor not your business.

Who Is Eligible For Accounts Receivable Factoring?

2007-07-07T02:26:00.001-07:00

Finding a factoring company is not all that difficult, but many people do not know what a factoring company actually does or provides. If you are in business for yourself, chances are good, you should really understand the concept behind a factoring company providing a cash advance via an invoice factoring service.

What exactly does accounts receivable factoring mean to you and your business? Well, it translates into money today for promised money tomorrow. Nonetheless, factoring is not a loan as in a home loan or a car loan. Instead, factoring means you get money today for the money you should be getting tomorrow. Factoring, in essence, is a cash advance more similar to a payday cash advance than a loan.

Many businesses need cash today for the equity of invoices they may hold now. With invoice factoring, the business owner sells his or her commercial invoices today for the money needed now rather than later. This has many benefits, such as:

- providing a small or medium business with a more workable, immediate cast flow;
- allowing a small or medium business to meet expenditures such as payroll and taxes;
- offering a small or medium business the opportunity to purchase additional contracts and materials needed to make more business;
- and finally, small or medium business will find accounts receivable factoring means less debt.

As is obvious, factoring definitely has some advantages, but not everyone will qualify for invoice factoring. Certain types of businesses are more able to get those factoring needs met, such as:

- temporary placement providers;
- cable and/or satellite television contractors;
- business in Chapter 11bankruptcy;
- contractors such as defense;
- nursing registries;
- and finally, many bodyguard services.

While many factoring companies will offer different factoring services, this accounts receivable factoring is most commonly available to the types of companies listed above. If you think you may qualify for an invoice factoring the best way to decide whether or not you qualify is to find a reputable factoring company in your area or try searching via the Internet.

Factoring companies purchase the invoices, but what does the factoring company get for its time and effort? Factoring companies purchase your invoices at a reduced rate. There is another benefit to offering accounts receivable factoring by the factoring company - the business does not have to worry about collecting the debt should the debtor default or renig on the promise of cash later. Of course, no one wants to think debtors will not live up to their end of the deal, but when the inevitable does happen, an invoice factoring provider is a good partner to have on your side.

There are many types of businesses that qualify for an accounts receivable factoring service, and factoring providers thoroughly enjoy purchasing invoices. There is money to be made. This is a copasetic relationship where both benefit from each other. Additionally, many small businesses need money now not later, and sometimes, debtors do not pay what is promised. With a good factoring company, the small business will find they have a partner is collecting that debt without additional costs to the small business.

When Does Leasing Beat Auto Loan Financing?

2007-07-07T02:25:00.000-07:00

Invoice Factoring Can Save Your Business

2007-07-03T02:47:00.001-07:00

Invoice factoring is the basic practice of selling invoices to financial factoring companies for the purpose of receiving money right away. Smaller companies often fall into the financial trap of not having available resources and therefore sell their invoices to financial agencies in order to gain working capital. This practice does not require the business to swallow more debt and in fact operates in an opposite manner. Small businesses that don't utilize the financial tool of accounts receivable factoring acquire more debt by waiting for the accounts receivables to be paid.

Invoice factoring is typically used as a measure to avoid falling further into debt. Without this effective financial management tool many businesses have to adopt more loans or alternatively, put up more collateral for existing loans. Invoice factoring is available at a minimal fee, which makes it an attractive substitute to assuming more debt. In fact, accounts receivable factoring fees are usually set up by way of discount and these rates differ from individual company to company. The great advantage to this type of liquidation is that there are no interest fees to pay and the result is most often better profit margins.

There are many financial companies that offer invoice factoring services. The individual agencies will set up a company with the right set of accounts receivable factoring parameters. After the professionals from the invoice factoring agency assess the individual situation, they will set up the receivables to be factored and proceed accordingly.

Financial agencies that offer accounts receivable factoring are located worldwide and support every industry under the sun. Even truck drivers can sell their invoices to an invoice factoring financial service to free up capital fast. One of the most attractive aspects to an accounts receivable factoring agency is that they customize the service to each business's individual requirements.

There are as many different types of invoice factoring agencies, as they are rates for factoring invoices. Some purchase the invoices no matter what the receivable total is and some accounts receivable factoring agencies will only liquidate invoices that accumulate more than $100, 000. Generally the higher the invoice factoring total is, the lower the rates will be to take advantage of this financial escape. In cases where the total is in excess of a hundred thousand, a solid accounts receivable factoring agency will offer rates that can be as low as two per cent!

There are many different types of invoice factoring agencies. For example, some agencies will only serve those businesses in the medical profession while others only serve purchase order factoring. There are some accounts receivable factoring agencies that are specifically designed to cater to small business and offer many great advantages that a larger agency wouldn't necessarily offer. Despite the type of invoice factoring agency that is required for every individual business need, accounts receivable factoring typically happens within a 24 hour time period.

When Does Leasing Beat Auto Loan Financing?

2007-07-03T02:46:00.000-07:00

How to Lease Option any Home

2007-06-29T02:37:00.002-07:00

Haven't been able to achieve the "American Dream" of home ownership? No matter where you turn to try to buy a home you're always "turned down" or your just "don't qualify." We cure your heartbreak through our Lease Purchase. Do you fit this scenario: you have a good job, good rental history, and could pull together $6,000 or $7,000, but you have a few glitches and blemishes on your credit report or maybe just some slow pays, a car repo, or maybe some other type of credit problem. Because you're not an "A" credit borrower the lenders are telling you that you need 10% or 15% down payment (that's a lot on a $400,000 home), closing costs (another $5,000 or so), plus you're going to get a high interest rate! After hearing that a few times most families throw in the towel.

With our Lease Purchase Program we turn your nightmares into a real dream come true. Take the following for an example. You go to one of our open houses in the Southern California area, you fall in love with the home, and you call us saying, "I want it." At that point you fill out an application. Don't worry about this part; it's simple! We just have to verify the information. Then you fax it to us. Within 24 hours you get the answer you've dreamed of. IT'S YOURS! You're able to put down a minimum of $6,000 option fee downpayment, pay the first month's lease payment, and you're able to move in. You have simply signed a "Lease Agreement With Purchase Option," and it locks in a specific sales price, and the monthly lease amount. Plus it allows you to enjoy the home while you pull together the rest of your downpayment and clean up your credit rating. There is no long pre-qualification process, no days and days waiting for an answer, and no more rejection. The full option fee downpayment is credited back to you at closing when you're ready to get a mortgage in your name. Sometimes there is even a "rent credit" (a % of the monthly lease payment) built in that's also credited back to you a closing. Now that you're getting a clearer picture of what can take place, read the following and get really excited about your possibilities.

The Advantages of Lease Purchase

* You usually need only about $6,000 in downpayment for homes in the $350,000 to $400,000 price range. That's nowhere near what the mortgage company wants.
* You can move in quickly and enjoy the pride of home ownership immediately. There is no long waiting period for tons of paperwork to be done.
* You will have time (usually 12-24 months) to arrange your finances so you can qualify for a loan, save up the rest of your downpayment, and clean up your credit rating by establishing a solid payment history during the lease period.
* You can arrange the "Lease Agreement With Purchase Option" to allow a portion of the monthly lease payment to be credited to you at closing, thus building equity along the way.
* The full amount of the option fee downpayment is also credited to you at closing.
* It allows you to distance yourself from any major credit problems.
* You can wallpaper, paint, decorate and make improvements to the property knowing that the benefits are going to be to your advantage, not a landlord's.
* Qualification requirements are not as strict as conventional financing.
* There are no taxes or insurance to pay, however a rental policy is recommended.
* Repairs are covered through a Home Warranty Plan, which we usually recommend you obtain.
* Any appreciation that the property receives is your profit if you decide to sell one day. You're usually able to get a fair price with great terms and have your home ownership dream come true!

Finding a Recourse Factoring Company Made Easy

2007-06-29T02:37:00.001-07:00

Do you have a lot of invoices that will be due in the future? Does your business offer lines of credit? Many small or medium businesses find it beneficial to offer credit to customers, but those same businesses often need that money today not 3 months from now. When bills come due for you, those invoices can work for you today. Finding a reliable recourse factoring company can solve your problems by developing a working capital for your needs rather than having capital on an invoice.

Slow paying customers can break almost any new business, and banks are usually reluctant with helping your business get on its feet. Recourse factoring companies offer a viable solution to your cash flow problems. By allowing a factoring company to hold your invoices today, you can get a cash advance on future payments now rather than later. When those invoices get paid, you are paid any remaining amount directly from the factoring company.

Recourse factoring means that if the invoice is not paid, the company has recourse to obtain the monies advanced from your business directly. This is high risk for the business, but low risk to the factoring company. Recourse factoring often has less of a rate and/or fee than does other types of factoring because your business is help liable for the invoices.

Finding a factoring company is not always easy. Banks are not as quick to offer factoring - if it is offered at all. Nonetheless, there are companies out there specializing in factoring services for new small or medium business, or more established small or medium businesses. Newer companies may have to pay more of a fee or rate simply because they do not have established credit, but the good news is factoring can help establish that much needed credit.

The Internet is probably the easiest method for finding a factoring company. All factoring companies offer recourse factoring because of the lower liability for the company itself. However, when searching for a reliable factoring company, be sure to check for interest rates, fees, credit check guidelines, additional fees, and time covered and time before the monies become available. Most of all, read the fine print thoroughly, and if you have questions, find the answer before you agree to anything. Still have questions? Contact a local financial advisor.

The great benefit of factoring is that the invoices are paid before their due date. Instead, the invoices are used as a form of equity. This is not a loan - this is in fact a cash advance. If the invoice does not get paid, the business is responsible for paying the debtor's balance on the invoice or another invoice is used to replace the unpaid invoice.

Recourse factoring is a great way for small or medium businesses to get their capital working for them today rather than tomorrow. Factoring is not a new term. In fact, factoring is probably dates back to the Ancient Egyptians. However, most businesses are not aware of the benefits offered by factoring those invoices.

Medical Factoring: A Smart Finance Solution

2007-06-27T02:23:00.001-07:00

Medical factoring companies do not offer an existing medical practice a loan. In fact, the opposite is true. The medical office is selling third party account receivable invoices to a medical factoring company. This allows the medical factoring company to provide immediate cash payment for the total of the invoices to the medical practice provider. Third party billings are insurance companies such as Blue Cross and other like insurance providers. The medical field is one area that is extremely slow in paying invoices and most medical insurance companies can take up to 120 days to pay an invoice. This causes any medical practice to suffer from serious cash flow issues. Medical factoring changes the face of this situation by taking on the burden of waiting for payment on the outstanding invoices.

The sale of medical third party invoices is a great alternative to create working capital immediately. The financial practice that medical factoring offers in financial gains and advantages are enormous. The cash flow that is being generated through the use of a medical factoring company is stable and reliable source. Most medical factoring companies do not set a pre-specified limit of funding. When limits are applied it is direct correlation with the amount of money owed by the third party account receivables. The working capital is immediately released to the medical office allowing finances to be available for purchasing new equipment or simply taking care of payroll responsibilities. Another enormous advantage that medical factoring companies offer the medical practice is that there is no collateral requires. Banks and other traditional lending institutions always require collateral against any loans that are given. This ties up the availability of collateral for expensive medical equipment or leasing contracts.

Many potential medical offices that seek the services of a medical factoring company tend to believe that the cost is inherently higher than it actually is. It is expensive when compared to alternative sources such as traditional banking institutions or lines of credit. It should be mentioned that if a medical office or practice has the ability to get a line of credit or a bank loan to help ease the financial difficulty associated with collecting receivables from third party insurance companies, that should be the first avenue to travel down. However, most medical offices do not qualify for bank assistance due to the length of time they have been in business.

Medical factoring companies generally offer cash advances of 75-85% on the gross total of invoices that are being factored. The other percentage is kept until the outstanding invoices are paid to the medical factoring company. Once it is paid, the factoring company will issue another payment for the balance minus the predetermined factoring fees.

Factoring of accounts receivables is a relatively new practice in the medical industry but it is growing at a phenomenal rate. It is the effective financial tool that can provide the working capital needed for medical practices to meet recurring expenses and equipment purchasing expenses that encourage business growth.

Choose the Right Invoice Factoring Company to Improve Cashflow

2007-06-27T02:22:00.000-07:00

Using the financial services of an invoice factoring company can be a useful financial conduit for temporary needs. It should only be considered a short-term solution when traditional banks and lending institutions won't assume the risk associated with small or start up businesses. By utilizing an accounts receivable company it will allow an existing business to effectively navigate through a hard financial period. This typically takes place as business grows and invoices are outstanding. Freeing up the capital that is tied up in unpaid invoices can be the very key in business success.

Acquiring capital from an invoice factoring company is a priceless solution and temporary stepping stone to allow a business to grow enough to qualify for bank lending to ensure stability. An accounts receivable company will afford a business the solid financial strategy to bridge the gap until the next level of business financing can be reached. Again, it should not be a long-term solution merely a necessary financial step that will bring credibility to the business.

An invoice factoring company also provides the business a chance to build up the necessary credit history to prove to traditional lenders that it is credit worthy. It also demonstrates the validity of the business by proving it has the required resources to qualify for commercial funding. It should also be stated that an accounts receivable company would ask the business wanting to sell their accounts receivable invoices if they have an existing loan with a traditional lending source. If the answer is yes, it is very difficult for an invoice factoring company to approve that request. The reason is that there is a financial conflict of interest because legally, a bank loan that is secured by the business's receivables cannot be factored. The conflict arises because an invoice factory company will require being number one in security against the money owing on the accounts receivable invoices. The professional standards regulating the financial lending businesses would deny this conflict because it would clearly put any loan in jeopardy.

If a bank loan is preventing a business from taking advantage of the financial advantages to using an accounts receivable company, there are options available. One of these customary methods is to pay the outstanding loan balances with the initial payout from the invoice factoring company. This offers a viable solution that is very simple and at the same time gives that business the opportunity to free available working capital that is required to expand and grow the business.

Invoice factoring companies provide a great business solution when traditional lenders say no. By using this effective financial tool it allows an existing business the opportunity to grow and thrive. Inquire about different invoice factoring companies as they are each unique and have their own set of rules by individual companies.

Factoring Financial Services - The Basics

2007-06-22T01:55:00.001-07:00

There are several aspects of an existing business that are taken into consideration when getting approved for factoring financial services. The information that is required from any factoring financial servicing company will revolve around average invoice size. This is a huge contributing factor as well as whether the invoices are domestic or international. This means that the company seeking factoring services sells their service or goods outside the boundaries of the home country. The payment terms that were implemented for the invoices will also be considered in assessing the risk factor. The final aspect that any factoring financial services company will consider is the credit worthiness of the clientele base. All of these points together will give the company the opportunity to assess the risk associated with financing the invoices for any existing business.

There are basically two different types applications that are applied by factoring services companies. These are called the discount method and the prime plus method. Many companies use both of these methods of determining the cost that is charged to the client. Each financial situation is unique and most factoring financial services companies accommodate each business client according to their specific situation. With that said, in terms of very general speak, the prime plus method is usually the choice that produces lower rates than the discount method. This is an incredibly important step when finding a company that offers factoring services because many have hidden fees that are not mentioned initially. Find out exactly how each factoring financial services company regulates their factoring fees so there are no surprise fees added on at a later date.

To effectively understand the different methods used by factoring services companies, it is best to individually research each one. Let's start with the prime plus method to determine factoring financial services fees. The prime plus method has only two fees within its structure. The first part of the fee schedule is a one-time fee that is applied to every invoice. This is generally called the factoring fee. The factoring fees are assessed depending upon the gross amount of the invoice and applied accordingly. The second part of the prime plus method is the interest charge on the financial advance that the factoring services firm is providing. The day that the finances are made available to the business is the day that the interest begins. The interest rate is calculated by a pre-determined amount by the firm and the client before any financial advances are made.

The discount method that is applied to invoices by the factoring financial services firm's is based on a percentage per number of days. For example, if the discount method were 3% for the first 30 days, it would be calculated accordingly. It isn't hard to ascertain that the prime plus method is likely the better choice for any potential factoring services customer.

Choose the Right Invoice Factoring Company to Improve Cashflow

2007-06-22T01:54:00.000-07:00

How to Lease Option any Home

2007-06-18T22:41:00.000-07:00

Haven't been able to achieve the "American Dream" of home ownership? No matter where you turn to try to buy a home you're always "turned down" or your just "don't qualify". We cure your heartbreak through our Lease Purchase. Do you fit this scenario: you have a good job, good rental history, and could pull together $4,000 or $5,000, but you have a few glitches and blemishes on your credit report or maybe just some slow pays, a car repo, or maybe some other type of credit problem. Because you're not an "A" credit borrower the lenders are telling you that you need 10% or 15% down payment (that's a lot on a $400,000 home), closing costs (another $4,000 or so), plus you're going to get a high interest rate! After hearing that a few times most families throw in the towel.

With our Lease Purchase Program we turn your nightmares into a real dream come true. Take the following for an example. You go to one of our open houses in the Southern California area, you fall in love with the home, and you call us saying, "I want it." At that point you fill out an application. Don't worry about this part; it's simple! We just have to verify the information. Then you fax it to us. Within 24 hours you get the answer you've dreamed of. IT'S YOURS! You're able to put down a $3,500 option fee downpayment, pay the first month's lease payment, and you're able to move in. You have simply signed a "Lease Agreement With Purchase Option," and it locks in a specific sales price, and the monthly lease amount. Plus it allows you to enjoy the home while you pull together the rest of your downpayment and clean up your credit rating. There is no long pre-qualification process, no days and days waiting for an answer, and no more rejection. The full option fee downpayment is credited back to you at closing when you're ready to get a mortgage in your name. Sometimes there is even a "rent credit" (a % of the monthly lease payment) built in that's also credited back to you a closing. Now that you're getting a clearer picture of what can take place, read the following and get really excited about your possibilities.

The Advantages of Lease Purchase

You usually need only about $3,500 in downpayment for homes in the $350,000 to $400,000 price range. That's nowhere near what the mortgage company wants.

You can move in quickly and enjoy the pride of home ownership immediately. There is no long waiting period for tons of paperwork to be done.

You will have time (usually 12-24 months) to arrange your finances so you can qualify for a loan, save up the rest of your downpayment, and clean up your credit rating by establishing a solid payment history during the lease period.

You can arrange the "Lease Agreement With Purchase Option" to allow a portion of the monthly lease payment to be credited to you at closing, thus building equity along the way.

The full amount of the option fee downpayment is also credited to you at closing.

It allows you to distance yourself from any major credit problems.

You can wallpaper, paint, decorate and make improvements to the property knowing that the benefits are going to be to your advantage, not a landlord's.

Qualification requirements are not as strict as conventional financing.

There are no taxes or insurance to pay, however a rental policy is recommended.

Repairs are covered through a Home Warranty Plan, which we usually recommend you obtain.

Any appreciation that the property receives is your profit if you decide to sell one day. You're usually able to get a fair price with great terms and have your home ownership dream come true! If you’re looking for a home in the Southern California area, contact us, and we will give you a list of houses that we are offering "Lease Purchase" and all of the details on each one. We will help you not only find the home of your dreams, but we will help you negotiate all the aspects of purchasing a home "Lease Purchase" to your greatest advantage.

Finding a Recourse Factoring Company Made Easy

2007-06-18T22:40:00.000-07:00

Factoring Companies - Ask About Hiddens Fees

2007-06-12T03:10:00.001-07:00

There are literally hundreds of factoring companies to choose from in the modern economy. Each of these companies presents its own set of benefits and advantages to using their company. However, there are a few tips and tricks that can be learned before setting out to find financing companies that will best suit individual needs.

The first aspect to consider when choosing appropriate factoring companies is that there are no hidden fees. Many companies promise great return only to discover that there are invoice fees, charge back fees and other fees that the financing companies are not upfront about. Ask and inquire about hidden fees such as phone calls or any other fees that may not have been mentioned in the company literature. Most reputable factoring companies incorporate the fees for invoices, and other expenses in the percentage that they offer to buy invoices.

That effectively introduces the percentage of which many highly regarded financing companies offer. Be cautious of factoring companies that offer a very high advance rate on the factoring invoices. These are the companies that typically have hidden fees so that when it comes time to get the actual finances, the rate becomes much lower. Generally, a good solid rate for financing companies is around 80%. It may seem unattractive compared to a similar company offering 90% but after hidden fees the percentage usually falls much below 80%. Factoring companies that offer around 80% advance for factoring invoices usually don't have hidden fees. If they offer 80%, that translates to an actual 80% advance on all factoring invoices that are presented.

Keep in mind that financing companies are essentially taking over the business's accounts receivables. With that said, factoring companies that offer a professional collections department would be an essential asset. The benefits to finding financing companies that offer this service characteristically speed up the process inherently. The manpower is available to collect the debts from the factored invoices in a professional and timely manner. It also avoids the much dreaded charge back fees when the invoices are not paid after a certain period of time allotted in the initial factoring contract.

Many factoring companies do not assume risk against those debtors that may or may not pay their invoice. A solid company with a reputable factoring history will assume the credit risk associated with invoice factoring. That means that if the client doesn't pay, the financing companies take that risk instead of the individual business, which is a huge relief for any prospering business.

Factoring companies should be selected following basic ground rules to ensure a successful factoring experience. Select the financing companies according to the history that they have. Any good company will have a proven track record to accompany their claims and should be easily accessible. Factoring companies that understand the needs of any growing business is key to factoring success.

Take on More Work With the Help of Construction Factoring

2007-06-12T03:09:00.000-07:00

Seasons that revolve around the construction industry have been a source of concern for contractors and sub contractors since the beginning of time. Construction factoring offers these companies and individuals a feasible solution to gain working capital immediately. Many companies that specialize in construction factoring have even gone as far as to completely revamp the system to cater to the construction industry's specific financial needs. Where banks are skeptical to lend to construction companies, construction factoring generates more than a billion dollars of business a year by catering to them.

With that said, its easy to see the attractive aspect of offering construction factoring to these construction contractors and sub contractors. Typically, traditional lending institutions consider construction to be a risky business. This goes against the very nature of these financial institutions because they are taught to only invest in safe business prospects. Construction is a tough business and unless a contractor can present proof over several years of positive cash flow, traditional lending companies will not even look at the prospective client.

Construction factoring companies acknowledge and understand the intricate workings of the construction industry. One of the biggest factors to financial hardships revolving around the construction industry is the time delays and the cost overruns. Plans change, weather factors and determines working days and it is a rare occasion when a contractor says the job is done and far under budget. The construction factoring companies effectively foresee these situations and offer a viable financial solution. The construction factoring company purchases the accounts receivable invoices for a very fair factoring fee. The contractor is presented with the cash that enables the purchase of materials to continue ongoing work on any given project as well as paying the employees that are expecting their weekly salaries.

Most building contractors don't have the resources financially or physically to take on more than a few projects at one time. The materials are expensive and the labor is expensive which prohibits the construction industry in a way that doesn't affect most other industries. It isn't unheard of that a small construction company has gone out of business because a project was delayed or various other risks associated with the construction industry. Construction factoring companies are designed to deal with this type of industry and often come from a construction background.

Construction factoring can't change the very nature of the construction industry but they can provide the financial means to continue growing and expanding. Construction factoring companies are said to have higher fees than other industry factoring companies. This is all part of the ebb and flow of the construction industry and the understanding of how this industry operates. Construction factoring companies typically withhold a certain amount to cover any disputes around 25-30%. This may seem like a high rate but most construction contractors are more than happy to pay that price for the peace of mind that they are afforded.

Offer a Vendor Leasing Program to Enhance Sales and Profits

2007-06-07T04:05:00.001-07:00

Equipment vendors who offer a properly structured leasing program are not only giving the customer a viable financing option, they are taking a major step to increase sales, market share, and profits. Yet it’s surprising how many companies will not provide a leasing program. Some say it’s because their customers have their own sources. Others say their customers pay cash. This mindset can be costly in a variety of ways. The biggest problem is that it can drive the customer to the arms of your competition.

Some equipment suppliers do offer a leasing program, but give the customer a choice between several leasing companies for them to use. That may sound practical, but “shopping” deals with a multitude of leasing companies can actually lower the chance of approval. If the customer chooses one of the leasing companies, and is subsequently declined, two negative actions may result. First, the credit inquiry lowers the customer’s credit score. Second, it will be clear this is a shopped transaction, and will make it more difficult to get the credit approved. If it is approved, the lower credit score will cause the rate to be higher.

Establishing a sound relationship with one reputable leasing company is the best course of action for both your company and your customers for several reasons:

• The relationship (allowing one leasing company to be involved) should result in lower rates for your customers, thereby making it more attractive to buy from you. If a vendor uses multiple companies and shops deals, they will not usually get the best rates.
• Using one leasing company results in better pricing because of increased volume. Leasing companies make more money when deals come through referrals, rather than expensive marketing. The referral business is more profitable because it provides a steady stream of deals from clients who are looking to acquire equipment now and need financing.
• Because maintaining the relationship with the equipment supplier is critical to profitability, they will do everything in their power to keep the approval rate high and the lease rates low. These savings are passed on to the client.
• The leasing company will also be more motivated and go the extra mile to fund the most challenging credits.
• Because of economies of scale involved with large volume directed to the leasing company, the supplier is often entitled to referral fees of 1% to 2%, thus providing an additional income stream.

Lease Medical Equipment for Optimal Financial Results

2007-06-07T04:04:00.000-07:00

Medical equipment leasing is an excellent way for providers to allow their practices to acquire state of the art equipment. The medical profession is constantly changing, so in order to remain competitive, providers must continually upgrade their equipment packages. Unfortunately, to outright buy or get a standard loan on the equipment requires a huge outlay of cash. Leasing solves the problem because no down payment is required, thereby allowing the provider to retain thousands (or hundreds of thousands) of dollars of capital. Lease periods typically range from 24 to 60 months, so there is a great deal of flexibility to upgrade the equipment without a major capital investment.

There are many advantages to leasing medical equipment. There are no down payments, the application is relatively simple, and no restrictive borrowing covenants. In addition, leasing doesn’t involve cross collateralization. Leases provide 100% financing with low rates for those with good credit. Other advantages include tax deductions and immediate write offs (depending on how the lease is structured), improved cash flow, fast processing, and better asset management. You usually get an option to buy the equipment at the end of the lease term at a stated amount or fair market value. Leases can also be written to accept lower payments during low volume cycles and can also provide an option for the lessee to make lower payments during the initial years and accelerate payments in the latter years.

Most any piece of medical equipment can be leased, such as x-ray machines, CAT scan machines, physical therapy equipment, computers, examination tables, lab equipment, and even waiting room furniture. Because of the many advantages of medical equipment leasing, providers are able to give the highest quality care to the public.

We advise using a financial broker to assist in the leasing process. A broker works to put the package together for the leasing company and helps the client sort through the myriad of options available.

Aircraft Leasing

2007-05-25T02:32:00.000-07:00

Leasing has become a common technique to acquire an aircraft, since this asset has become expensive and always subject to a variety of laws and regulations. One of its prime advantages is that it helps to defray cost considerably. Leasing aircraft is most common in military aviation. Further, individuals, pilots, commercial aviations, and government agencies utilize leasing options. Both short term and long term aircraft leasing options are available.

Aircraft leasing transactions are categorized into finance leasing and operating leases. Finance lease is required to meet any of these criteria: a lease term greater than 75% of the aircraft?s estimated life, option to purchase the asset for less than fair market value, or ownership of the asset to be transferred to the lessee when lease expires. It is always enhanced by tax benefits and is shown on the balance sheet of the lessee. Generally, it is for a long term period. On the other hand, an operating lease is usually signed for a short term period. Presently, aircraft leasing is mostly on the basis of this type of lease. According to statistics, there are about 12500 commercial aircrafts in the world, among which about 2500 work on operating lease.

It is always preferable to acquire aircraft leasing services from Commercial Aircraft Sales and Leasing ? a collective term given to organizations engaged in marketing airliners from manufacturers such as Boeing and Airbus. A countless number of other providers, such as commercial banks, financial institutions, and hedge funds, are also in the scenario to make available aircraft leasing services. Of which prominent are GE Commercial Aviation Services (GECAS) and International Lease Finance Corporation (ILFC).

As part of full service lease, most render maintenance management including AOG and heavy maintenance functions. Besides, companies like CIT Group Inc. offer leasing as well as financing packages for new and used commercial and corporate aircrafts. Customized aircraft leasing packages that are designed according to the needs of the clients are also available nowadays.

Using A European Lease To Purchase A Boat

2007-05-25T02:31:00.000-07:00

If there is a single concept which has revolutionized the car industry in recent years, it is the idea of leasing a vehicle rather than owning it. Nowhere has this been seen more dramatically than in the business sector where leasing is now the standard for car ownership.

Leasing for boats has been available in Europe for several years, but it is a purchasing option that is little understood by the boating community in general, and particularly in the UK, despite the fact that it can offer significant VAT advantages whether the vessel is used for private or commercial use. The two most popular schemes are those used in Italy and France.

At the time of their introduction, both countries were suffering a decline in yacht manufacturing. In an effort to halt this decline, both governments introduced incentives for yacht owners to buy their vessels under leasing schemes, which provided significant VAT reductions. In addition, the schemes were based on the concept that the larger the vessel then the greater the saving, thus encouraging owners to buy larger boats.

The growth of yacht manufacturing in the Italian market in recent years has been spectacular, with a proportionate increase in leasing which was up 32% in Q1 of 2005, and now represents nearly 6% of all yacht financing.

Before explaining the details of these schemes, it is important to understand some of the concepts behind them, which should help to clarify some of the relevant issues.

Firstly, in simple terms, a lease involves a bank or finance house, buying the asset and then effectively renting it back to the client for an agreed period at an agreed price. This is defined as a transfer of services. At the end of the lease, the client has the option to buy the asset which then becomes a transfer of goods. For VAT purposes a yacht lease is a supply of services and is deemed to take place where the person who makes the supply is established: i.e. French bank in France, Italian bank in Italy etc.

Secondly, they are simple to set up and administer and can be in individual, joint, or company names. Finally, it is important to understand that there can be two VAT elements, namely the VAT on the purchase price and the VAT on the leasing repayments.

If we take the Italian scheme as an example, the Italian law states that VAT has to be applied to leasing repayments, only in relation to the time spent within EU waters. Given that it is impossible to determine this accurately, the Italian Revenue Agency (along with the French & Maltese) has agreed that an assumed period can be applied to a leasing contract, based on certain criteria. Under the Italian scheme this is a combination of vessel type and size, so for a motor vessel over 24 metres in length, a rate of 6% VAT applies (30% of the standard Italian VAT rate of 20%)

In other words it has been assumed that a vessel of this size (24 metres plus) would spend 30% of its time in EU waters (ie the European summer for example) and outside EU waters for the remainder of the year (the Caribbean for example) The table below shows the various rates which have been agreed under the Italian leasing scheme:

Motor or sailing over 24 metres in length VAT: 6%

Sailing between 20.01 - 24m VAT: 8%

Motor between 16.01 - 24m VAT: 8%

Sailing between 10.01 - 20m VAT: 10%

Motor between 12.01 - 16m VAT: 10%

Sailing up to 10m VAT: 12%

Motor between 7.51 -12m VAT: 12%

Motor up to 7.5m VAT: 18%

Category D (protected waters only) VAT: 20%

The French leasing scheme is very similar and is based on the same principles of assumed time in EU waters. Their categories are based on the Class of vessel as shown in the Certificate of Registry. The French VAT base rate is 19.6%, and the minimum payable under the French system is 9.8% for a Class 1 vessel (50% of 19.6%)

The most recent country to introduce a leasing incentive is Malta, and with a lower VAT base rate of 18%, their rates vary from a minimum of 5.4% to a maximum of 18%.

Having covered the basic principles of what a leasing scheme is, and how it works, we can now consider the mechanics of acquiring a vessel using a European lease as follows:

Example - Individual Purchase Of A New Boat From UK Broker/ Manufacturer

1.The client chooses the boat and agrees a price with the dealer/broker or manufacturer. 2.The client agrees a deposit and lease period with the bank. 3.The bank pays for the boat. 4.The boat is leased to the client who pays installments at the reduced rate depending on the scheme, vessel type and size. 5.At the end of the contract the bank sell the yacht to the client at the agreed 1% residual value. Full rate VAT applies to this payment as this is a transfer of goods. 6.The boat is now VAT paid.

The above example is for an individual (or group of individuals) purchasing a boat using a European leasing scheme. In two cases it is possible to have a VAT free lease as follows:

• A charter business buying a vessel which is used 100% for chartering in EU waters.

• An individual buying a vessel for use 100% outside EU waters

Detailed below are some of the main features of the leasing schemes:

• Leasing facility available from 300,000 euros ( no maximum )

• Initial deposit between 20% and 50%

• Lease maturity from 3 to 8 years

• Residual value 1%

• Available for both private and company ownership

• Available for both new and used boats

• Registration in virtually any country and any flag

• UK flag is available under the scheme

• Chartering is permitted within the lease agreement

As a specialist marine financial services broker, we are receiving an increasing number of enquiries from both the UK and Europe to arrange leasing schemes with our European banking partners. The schemes are straightforward to arrange and administer, and can offer significant savings in VAT. As a company we also offer a wide variety of more conventional marine mortgages as we believe that whilst leasing offers many advantages, this may not be appropriate for all our clients.

Benefits of Leasing a Car

2007-05-25T02:30:00.002-07:00

Car leasing is not only an appealing financial proposition to most auto-consumers, but also a lifestyle and preference choice.

Here a four key benefits of leasing a car.

1. Keeping up with the latest trends. Leasing is occasionally more of a personal and lifestyle choice than a financial one. Lots of people are not comfortable with the idea of owning a car over a long period of time. They’d rather keep up with the latest technology and safety innovation and drive the latest models every 2 to 3 years. If you are prepared to sacrifice ownership for the latest set of wheels, than leasing is your best alternative.

2. Leasing also offers buying flexibility: it allows you to defer the buying decision while using the car. You do not have to negotiate with your mechanic over repair costs, deal with large maintenance bills or worry about a depreciating asset. You are actually getting a test drive for the length of your lease. At the end of your lease, you can buy the car or simply turn in the keys and walk away.

3. Leasing offers numerous short-term benefits. It reduces your preliminary cash expense because you do not have to pay the large down payment required for car ownership. You only pay for the depreciation on the car - only the part you will use during your lease, not the entire vehicle. This results in lower monthly payments and frees even more cash.

4. Almost everything about leasing is negotiable. If you know all the fees involved, you can lower your monthly payments, negotiate the purchase price of the car at the end of the lease and contract additional miles on top of your mileage limit. You can also do some shopping around and compare deals from different auto-insurers to get the cheapest GAP insurance for your lease.

Leasing vs. Buying

2007-05-25T02:30:00.001-07:00

Today, many people are wondering if leasing or purchasing is the best when it comes to new cars. Both leasing and buying have wonderful advantages as well as their own disadvantages.

No matter if you plan to lease or purchase you will be more than likely making monthly payments. Leasing does give you a bit of relief in that your payments will be lower than if you were purchasing, however, you will never own the car. If you purchase, your monthly payment will be higher, but you will own the car after all your payments are complete.

You may hear that leasing is better by some of your family or friends and then you will hear some that buying is better. Before you make your own decision, you should learn the similarities and difference of both options.

When you decide to purchase a car, most people have to apply for a loan. Not too many people have enough cash lying around to pay for a brand new car; therefore, they apply for a loan. The loan consists of two charges, the principal charge and the finance charge. The principal charge is the total value of the car and the finance charge is the interest that is placed on the loan. You should shop around and find the best possible interest rate before applying for a car loan; you may find that you can receive lower monthly payment through your own bank than with the car dealership.

Remember, when you are making monthly payments to purchase a car, the car is yours as long as your make your payment. You can travel any place you would like to go and make any additions that you would like to your car or other customizations. It is your car unless you default on the loan and then the car can be repossessed by the loan company that gave you the loan to purchase the car.

There are a couple of disadvantages to purchasing a new car. Your monthly payment will be higher than leasing, is the number one disadvantage and the other is that you will have to sell the car if you do not want the car any longer.

When leasing a car you will have to make monthly payments that consist of two charges, a depreciation charge and a finance charge. The depreciation charge is the price that the car has gone down in price while you were using the car, this will give the dealership compensation for the depreciation value that you used. The finance charge is of course the interest that you are paying on the term of the lease.

When you lease a car, you will never become owner of the car. You cannot make any additions or customizations to the car. You cannot sell the car or trade it in if you get tired of it. If you decide to take it back and the lease is not up, you will have stiff penalties to pay. You will also not be able to go any place you like. When you are leasing a car, you are given a certain amount of miles that you are allowed to drive during the term of your lease. If you go over the amount of miles specified then you will have to pay for every mile that you go over the original amount.

The short-term advantages of leasing are of course the fact that the monthly lease payment is quite a bit cheaper than monthly payments for purchasing. A matter of fact the payments are between 30 to 60 percent lower than most loan payments.

However when it comes to long-term advantages purchasing wins hands down, if you do not plan on keeping the leased car after the term of the lease. If you plan on returning the car at the end of the term of the lease and leasing another car, of course, you will end up paying more in the long run. You will own your car after you have paid off your loan, however, with a leased car you will have to lease another one and another one compared to driving the same owned car over the same amount of time.

10 Ways to Save Time and Money with an Independent Leasing Consultant

2007-05-25T02:27:00.000-07:00

Leasing is based on the principle of “use-of vs. ownership.” A client makes money by using equipment, not by owning it. The following tips explain what a leasing consultant is and how they can improve your image and increase your productivity while you enjoy the rewards of higher profits.

1. THE PERSONAL TOUCH

You will never have to deal with sales managers, sales reps, account managers, or any other managers that come to mind. An independent is the only one who assists you with your client’s leasing/loan options. A good consultant will follow up to make sure you are satisfied with work that was done. They will also keep you current on the latest leasing news and trends.

2. QUICK ACCESS

Time is money when you cannot get a consultant to handle your client’s financing. An independent is one phone call away. He or she will keep you updated with emails, phone calls, or faxes throughout the process.

3. HIRE FOR PROJECT

Hire an independent for one lease/loan or for several. It costs nothing to have a vendor program in place, and leasing consultants are paid when the leasing transaction is successfully completed. Have a leasing/loan program in place with only one leasing company, not several.

4. TRAINING

The independent leasing consultant is highly trained both technically and on business issues. They know the ins and outs of leasing, and they specialize in your field. The independent is a teacher, trainer, author, and technician.

5. ATTITUDE

The independent leasing consultant is a highly motivated professional. They strive to help companies improve their image and increase productivity while repeating the rewards of higher profits by using, not owning, their equipment.

6. PAY FOR PRODUCTIVITY

The client will pay when equipment is successfully installed and inspected. The consultant is paid when transactions are successfully completed.

7. SECURE OFFICE

In order to run credit checks, all leasing consultants must maintain an office either at secured location within their home or at an outside location. To be in the leasing business, a leasing consultant is required by the credit agencies to maintain a secured location with locks on doors and file cabinets.

8. WEB SITE

Today’s leasing consultants must have a web site. Years ago, when I ran my software business, I did not have a web site because I did not need one. The Internet better defined today; it is quick and easy to send email, have a web site, and be in e-commerce.

There are two types of web sites: one that tells about the leasing consultant, and one that tells about the business. The web site is usually the name of the leasing consultant. It will contain a bio, articles, and maybe an EZINE from the leasing consultant. The other site is about their business, and includes the benefits of leasing and application forms for clients to fill out and send electronically.

Both types of web sites should navigate easily and give full contact information – business address, phone, and email.

9. A COACH

A leasing consultant coaches you through the lease process by asking questions and supporting the client. They work to get you and your clients the best leasing program available, and offer suggestions and opinions when needed. They bridge any gaps between your financials and your business, and can customize a lease that works best for you.

10. BUSINESS PERSON

An independent leasing consultant is a professional businessperson who runs a tight ship. They are in the relationship business and are not just financial geeks.

Equipment Leasing

2007-05-18T02:36:00.001-07:00

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.

Financing for Your Bulldozer

2007-05-18T02:35:00.000-07:00

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.

New Car Quotes

2007-05-18T02:33:00.002-07:00

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.

Transportation Equipment Leasing

2007-05-18T02:33:00.001-07:00

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.

Office Space For Lease

2007-05-18T02:32:00.000-07:00

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.

How Do I Know If I Should Buy Or Lease A Car

2007-05-16T05:37:00.001-07:00

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.

Read The Small Print And Avoid Extra Costs At The End Of Your Lease

2007-05-16T05:36:00.002-07:00

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.

Warning - 4 Investor Secrets You Must Know Before Entering A Lease Option

2007-05-16T05:36:00.001-07:00

Warning! …Before Entering Into a Lease Option, You Must Know These 4 Secret Ways That Many Investors Will TRY to Take Advantage of You. Do you realize that the national average for SUCCESSFUL Lease Option Purchases is 15%-22%.

Unfortunately, these numbers are so low because all too often, investors will intentionally stack the odds in their favor.

What if… I could show you how to quadruple your chance of success by revealing a few tricks that investors have been using for years, when they sell a home “lease option” or “rent-to-own”. Here and now, I am going to REVEAL 4 “investor secrets” that investors hope you don’t catch on to, because they are designed protect the investor and make the deal “heavily stacked in his favor”. By discovering these easily noticeable signs, You Will Be Able To…

• find your dream home and dream investor immediately

• never waste your time dealing with an investor trying to take advantage of you

• and always be assured that you have “stacked the odds of success” in your favor.

First of all, if you are looking to buy a home, then congratulations! You really are doing yourself a huge favor by getting into a lease option, and getting out the rent trap that has so many people stuck. But, ONLY IF YOU DO IT RIGHT. Read carefully so that you can stand the highest chance for a successful experience with out getting taken by an investor.

Secret One: LARGE DOWN PAYMENT / NONREFUNDABLE OPTION CONSIDERATION

I am not suggesting that an investor who wants “some” security from his tenant/buyer is out of line. However, be cautious when agreeing to pay these. It seems so natural to feel like you have to pay this, because investors will usually insist on a fairly large down. At least any more than a customary security deposit.

They will justify this need with the excuse that you are a credit risk and therefore they need the security that you are serious.

It seems logical doesn't it? But what they really know is that based on the national averages, they stand a pretty good chance of getting this home back. And when they do,…they hope to have kept your big fat down payment for themselves.

It is a huge safety net they put underneath themselves for the day that you give them the home back. Remember, they know that if you are an average “Joe Buyer”, they stand an 80% chance of getting that home back in the next handful of months.

It is true that if you succeed in purchasing the home, it becomes irrelevant. But remember my point, the investor is already assuming you will fail, and therefore wants to keep your money regardless. Therefore, they want a fairly big one.

Secret Two: RENT CREDITS

This is the greatest brain wash that has ever existed.

WHO DO RENT CREDITS BENEFIT???

Answer – ALWAYS, the investor.

Investors will often lure you into their home by promising rent credits. Or in other words, out of every monthly payment, they agree to take a portion of that payment and give it back to you when you buy the home. For example, if you paid $1200 in rent each month,…the investor might agree to give you back $200 per month. They will often credit it back to you for your future down payment or closing cost.

On the surface that sounds good to you, because you think he is being generous to offer you that big savings.

But here are the facts. Mr. Investor is anticipating that you will be one of the 80% that give them the home back. And if you voluntarily GAVE HIM $200 MORE than you should have – Guess who just got richer at your expense. (4 out of 5 times)

Again, you might argue that if you succeed it is irrelevant, and that you were glad to have had the little nest egg saved up or credited back. But like I said before, I will reiterate that the investor is fully expecting the law of averages. He completely anticipates that you will not actually buy his home. Therefore he keeps the $1000 he normally would want, and also the $200 per month that you gave him over and above so that he could do this rent credit thingy.

My advise is this… negotiate to pay him $1000 (which is going to be his net anyway when you succeed), and then SAVE your own $200 in your own banking account and keep it out of Mr. Investors hands altogether.

Same net result to you… Much more security!

Secret Three: SHORT TIME FRAMES & TERMS

When an investor only offers 6 or 12 month terms, they are setting the stage for you to fail. 9 times out of 10 you will need 12-18 months to have your credit ready for a home loan. Rare is the exception to this rule DESPITE how many promises lenders have made to you about how close you are to getting your own loan.

BE REALISTIC and don’t let an investor fool you into taking anything less than a 24 month lease option term. If an investor has your best interest at heart they are going to give you plenty of time to clear up your issues and help you succeed. But unfortunately many investors don’t. THIS IS CRITICAL! You Must have a length of term that is long and realistic. Anything less is suicide.

Secret Four: LACK OF CREDIT REPAIR

The average investor will not offer to help you build your credit up while you are in the home. This is a certain sign that your investor clearly wants you to turn the home back to him in the future. Be careful to stay away from investors who assure you that “you can handle that part of it on your own”.

This is one area that 9 out of 10 buyers NEED credible help to overcome their challenges. If an investor offers you credit help, then that is a good sign that they want you to succeed. But if they don’t…this is their way of hedging the odds in their favor, that they can take the home back in the future, because you will fail.

CONCLUSION:

A Lease Option is a VERY POWERFUL way to take control of your future. If you can’t otherwise get a home loan I highly recommend it over a standard rental home or an apartment. Just make sure you do it right. Watch out for these tale-tale signs of a predator investor. There are companies and private investors out there who offer legitimately great deals to tenant/buyers who need a fair and honest opportunity. Some with success rates as high as 90% of the time. (Verses the national average 15%)

Search them out and compare some of their offers to each other. Never settle for a home where the investor is “stacking” the odds in his favor by using any of these above listed tactics. Now that you know these 4 simple secrets…

…You are more empowered to find the right home, at the right price, in the right neighborhood, and with the RIGHT INVESTOR!

Choosing the Best Type of Lease for Your Business

2007-05-16T05:34:00.001-07:00

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.

Medical Equipment Leasing

2007-05-16T05:32:00.000-07:00

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.

Equipment Leasing

2007-05-10T04:29:00.001-07:00

Financing for Your Bulldozer

2007-05-10T04:28:00.000-07:00

New Car Quotes

2007-05-10T04:23:00.002-07:00

Transportation Equipment Leasing

2007-05-10T04:23:00.001-07:00

Office Space For Lease

2007-05-10T04:21:00.000-07:00

How Do I Know If I Should Buy Or Lease A Car

2007-05-08T04:26:00.002-07:00

Read The Small Print And Avoid Extra Costs At The End Of Your Lease

2007-05-08T04:26:00.001-07:00

Warning - 4 Investor Secrets You Must Know Before Entering A Lease Option

2007-05-08T04:25:00.002-07:00

Choosing the Best Type of Lease for Your Business

2007-05-08T04:25:00.001-07:00

Medical Equipment Leasing

2007-05-08T04:24:00.000-07:00

Leasing Makes Startup Affordable For New Businesses

2007-05-04T02:59:00.001-07:00

Consider the Options of Leasing Out a Car

2007-05-04T02:58:00.003-07:00

Purchase a car or just lease it out!

Gone are the times when the options of getting a new car were to either purchase it or wait for a company car. But, today, one has a choice to either opt for car purchase or lease it out. There’s a wide variety of loans ranging from traditional bank loan to novated lease.

Lease a car and pay only for the use of car, on completion of the lease period, one can hand it back to the leaser, take out another lease or even purchase the vehicle through a third party. Leasing out is a good option, if your employer is willing to include a car as part of your salary package. Also get exempted from paying tax, especially for cars in the prestige or luxury sector.

Lease finance can be classified into two broad categories:

Finance Lease or Operating lease and Novated lease are the two categories of Lease finance.

Finance lease are quite popular due to the fact that they have an ability to novate the lease. There’s no deposit or trade-ins involved in such lease. Monthly payments are made based on the lease term, interest on the finance charge and the residual value of the car at the end of the term. A borrower may have to take risk on the residual amount, if the car is not worth the amount three years later, he will have to make up the residual difference and finalise the contract. However, one can take ownership, by refinancing the residual.

Another way out to have a car and get tax exemption is to go for novated lease. One can take out a standard finance lease on a car of his choice. The employer can pay the employee’s lease payments through a novation agreement which is valid till the last working day. The lease payments to be made, running costs of the car used for an employee’s private purpose will be subjected to FBT (Fringe Benefit Tax). This FBT is calculated on the basis of the car value. The kilometers traveled annually are covered by the pre-tax salary. If the employee resigns from the company, then the lease payments will be made by him and not the company any more.

Financing the Cost of Medical Equipment

2007-05-04T02:58:00.001-07:00

What Are the Range of Options for Equipment Acquisition?

Cash Payments

This option assumes that there is enough cash available.
Advantages:
• It’s simple and quick.
• Everybody accepts cash
• Cash purchases minimize paperwork and middlemen and may help reduce purchase price.

Disadvantages
• It’s generally not a good use of funds.

In today’s investment market, you can often obtain a yield on your money in excess of the interest charged for financing the equipment purchase. The only rationale for paying cash for the purchase is if your funds are in a low-paying account (e.g., a passbook savings account yielding 3%) whose yield is less than the interest on a loan or lease. In that case, taking the funds from a low-yield account and losing the 3% interest in order to avoid paying 9% or 10% is a sound financial decision. Of course, having significant funds in a 3% account is not wise cash management.

Financed Purchase In this method of purchase, a lender provides funds for the purchase and generally obtains some form of lien or other encumbrance on the equipment until the funds have been repaid.

Advantages

• It does not deplete cash flow. (Usually a 10% to 20% down payment of the total purchase price is required. (In many cases, the income generated by the equipment can exceed the payments.)

• Funds not expended for a cash purchase can possibly earn a higher-income yield than the interest rate of the loan. Disadvantages

• Interest rates may be high.

• The down payment may be high.

• The equipment is encumbered by a third party (unless the funds are borrowed from a source other than a financial institution‹for instance, from your pension fund).

Lease A lease offers an alternative to traditional financing. With a lease, the equipment is owned by the leasing company. The practice makes payments to the leasing company in exchange for being able to use the equipment (i.e., essentially rental payments). Leases can be closed-ended, in which case the leasing entity retains the equipment at the end of the lease term. There are also open-ended leases, where at the end of the lease term a predetermined amount is paid to the leasing entity, and the practice attains ownership of the equipment.

As a general rule, the higher the residual value (balance owed) at the end of the lease, the lower the monthly payments.

Advantages
• Generally little or no down payment is required.
• Leases are often supported by the equipment manufacturer, which can lower the interest rate or the residual payment (the amount required to attain ownership of the equipment at the end of the lease term).
• Leasing can give you the ability to obtain more purchasing power from a given amount of available cash.
• Sometimes equipment becomes obsolete in a relatively brief period of time. A closed-ended lease may allow you to use the equipment during its useful life and return it to the leasing entity at the end of the lease term with a lower total expenditure than an outright purchase would have required.

Disadvantage
• More interest is paid than in any other form of acquisition.

Other Leasing Considerations

1. Trade up‹An equipment manufacturer may have a lease or purchase program that will allow significant credit for the equipment you’ve acquired from them when you move up to a more current model or to newer technology. This can alter the calculation of the best option for acquisition.

2. Supported Leases or Financing‹An equipment manufacturer may support the interest rate of a lease or financing plan and may lower lease payments by increasing the residual value of a closed-ended lease. Again, these special offers may significantly alter the assessment of the best acquisition option.

3. Purchase Price‹No matter what financing option you choose, do not ignore the purchase price. Negotiate your best price before you evaluate financing. Do not fall into the trap that automobile dealers have used for years: “You can have the latest and best visual fields machine for only $49.95 a month!” You should always start with the purchase price and then move to the terms (whether lease or purchase).

4. Beware of the Lease That’s Not a Lease‹The Internal Revenue Service may consider an open-ended lease with a purchase option to be a purchase contract rather than a lease. The impact of this is that the lease payments may not be deducted as expenses, and instead the equipment will be capitalized and depreciated. Have your professional financial advisors evaluate the financing contract to assess your level of risk.

5. Each Transaction Is Unique‹Each piece of equipment you are considering for acquisition must be evaluated in the context of the following:

a. Purchase price

b. Projected useful life of the item

c Your current cash position and monthly cash flow

d. Your current and projected future tax position

e. Financing incentives offered by the vendor

f. Careful evaluation of the lease or financing contract to ensure that it meets the requirements for the method you plan to use to report the equipment in your tax filings

g. Any other considerations required by your expert financial and tax advisors

In today’s financial and tax environment, many of the factors that favored one type of financing over another have disappeared. What remain are the purchase price and financing terms, whether the transaction is called a lease or a purchase. Keep in mind that today’s market is not as good as it was last year. In the final analysis you may find that purchasing is cheaper than the interest cost on a lease.

For equipment that you anticipate retaining at the end of the lease or financing term, the purchase price, down payment, monthly payments, and total payments (principal and interest) are key. These factors can be impacted by incentives from the vendor, but ultimately the same evaluation needs to be done (purchase price, down payment, monthly payments, and total payments). Secondary issues may include tax advantages and other concurrent acquisitions.

If you think that eventually you may be recycling the equipment or‹trading up to more current or more capable models‹the evaluation changes; and a lease, especially one that is artificially supported by the vendor, may be a better way to go.

Finally, if you are just starting out in a new practice or have just acquired an existing practice and need to upgrade equipment, current cash availability and projected cash flow may dictate that you finance the acquisition with the lowest possible cash outlay, even if the ultimate total of funds required is significantly higher. Remember to get advice from a professional to help you sort out the details of the equipment lease.

Lease Contracts

2007-05-04T02:57:00.002-07:00

A Lease means an assignment of the right to ownership and use of merchandise for a period of time in return for some mutually agreed on remuneration or recompense. A sale, whether it is a sale on agreement, or a sale or return, or retention or creation of a collateral interest, is not labeled as a 'lease.' Whether it is a real estate property that is to be leased or an automobile or any other kind of property, it must be done within the terms of a legal and binding contract to avoid misunderstanding, loss and breach of trust. A lease contract is an officially authorized document or record that certifies a lease transaction between the individual renting the property and the leaseholder.

A leaseholder can enter into a lease contract with the individual leasing property by approaching a lawyer and stating his assets and choices of remuneration. The individual leasing the property then states his conditions for leasing the property, as well as the expected remuneration. When the two mutually agree on payment, the contract is carefully drafted by the leasing lawyer or agent and signed by both parties. The period of time the recompense must be made is also stipulated in the contract. In case of breach of contract by the leaseholder through non payment of remuneration or repeated, the contract also mentions the penalty incurred therein. Similarly, there is penalty for the individual leasing the property when there is compromise on promised quality, as well as unnecessary inconvenience caused to the leaseholder. However, it must be noted that lease contract are more in the interest of the leaseholder.

Sometimes, a lease contract is combined with an option-to-purchase contract, where at the end of the lease term, the leaseholder can buy the property under mutually agreed terms.

How to Purchase Much Needed Medical Equipment Without Spending Your Own Money

2007-05-04T02:57:00.001-07:00

We are enjoying the fruits of the exponential growth rate of medical equipment technology. The medical community may now offer diagnoses based on information about a patient’s condition that we couldn’t accurately obtain using older equipment. The problem is that most organizations capital budgets just can’t keep pace with the quickening of technology advances.

The problem is getting worse

If you’re like most medical care providers, you are facing the dilemma of how to provide cutting-edge care to your patients but don’t have the financial reserves (cash or credit) to make the purchase of new equipment. One could argue that it is economics that slows down the delivery of medical care. Standard accounting practices allow for the assets to be depreciated over five years. What do you do when the equipment needs to be replaced in some amount of time less than five years? One option is to try selling the outdated equipment on eBay or somewhere else in the open market.

There’s another solution

There is another option that many astute organizations use. They simply lease the equipment. Why lease? It’s all about cash-flow. Typical leasing standards require you to put just 20% down in cash, and there are some rather nimble leasing companies that will allow you to write 100% of the cost of the equipment as operating costs on your firm’s balance sheet. By treating the asset as an operating expense you don’t have to deal with depreciation on the leased medical equipment. Plus the lease does not show up on your credit report, possibly freeing you to make other necessary purchases.

Is leasing for you?

While most organizations need to be in business for at least 3 years, savvy shoppers can find leasing companies that have no time-in-business requirements. And even without documenting your financials you should be able to enter into leases up to $150,000. By providing a bit of financial information, you can lease items with a much higher dollar figure.

Does this sound like a viable option?

Typical lease terms are two to five years, and are affected by the typical useful life of the item you are leasing for your business. Some leasing companies have the flexibility to buy back newly acquired equipment assets and convert them into leases. Do you normally pay shipping, installation, training and other soft costs on top of the actually hardware? You can search out leasing companies that will include these items in the lease. Have a lease with unfavorable terms? Most do not know it, but you can actually “refinance” leases into one with more favorable terms.

If you’re strapped for cash, or just want to conserve it for other business purposes, leasing will enable you to obtain a much needed piece of business (medical or otherwise) equipment without a large outlay of cash.

I Need to Change my Car, Should I Lease or take a Loan?

2007-04-30T02:54:00.003-07:00

Leasing a Car

Leasing a car is like renting a vehicle: you pay a monthly installment which includes a fee for the use of the vehicle, and some other fees and costs, like insurance, maintenance, administrative fees, etc. However after a period of time leasing, you are entitled to exercise the right to purchase the vehicle for a considerably smaller amount than the retail price of the car. If you decide to do so, then the monthly payments you’ve made can be considered to be part of the purchase price of the car and you only have to put enough money down to complete payment.

Benefits of Leasing

Leasing is an excellent option for those who like changing their car every two or three years because you don’t need to sell the vehicle, you just have to notify the financial institution you don’t want to pursue with the leasing for another period and return the car. You can even arrange for the car to be exchanged for a new model or another brand and model and start paying the leasing installments for this new car.

Since the car remains property of the financial institution, it doesn’t belong with your assets and you won’t have to pay taxes over it. Moreover, in some cases it can be deducted from taxes as an expense. This is very much like renting a car, however, it’s considerably cheaper as the leasing installments are but a portion of a car rent installment.

Drawbacks of Leasing

For those who like ownership, leasing won’t satisfy their needs. As stated before, the car leased remains property of the leasing company, and thus you cannot do what you please with it. It cannot be repainted, fixed, have the interiors changed, etc. without the authorization of the leasing company. It cannot be sold or rented and you can’t decide which insurance company to hire or which mechanic can repair it.

There are also some limitations as to the mileage you can drive with the car. If exceeded there are penalty fees. Also, since the leasing period is limited, unless you exercise the right to purchase the vehicle, you’ll have to return it in the same conditions that it was given to you. Any reparations that have to be done to the car will be your responsibility unless the insurance covers them.

Summing up

As you can see, the answer to whether you should request a loan to buy your new car or lease, is not easily answered. You need to analyze if your needs are satisfied with the leasing option or you prefer to own your car even if you have to pay a little more and have a debt on your back for a couple of years. Bear in mind though, that unless you plan to have your car for many years, a new car loses a portion of its worth immediately after you buy it. When leasing you don’t suffer this drawback, since the car does not belong to you.

Advantages of Business Equipment Leasing

2007-04-30T02:54:00.001-07:00

One of the main reasons that businesspeople often choose to lease equipment, rather than borrowing money to buy it outright, is the very low up front cost of obtaining a lease. Unlike bank loans, which often require a large down payment, you can generally initiate a lease arrangement with just two months of advance payments.

This lack of up front costs allows you to keep more of your capital to make valuable investments in growing your business.

Another advantage of leasing equipment is the potential for protection against obsolescence. When buying a new computer, for example, you can negotiate a fairly short lease term, then upgrade to newer machines before the old ones are out-of-date.

That way the gently used computers can be re-sold as refurbished consumer products, while your business never has to do without the top-of-the-line equipment it needs.

Finally, leasing business equipment can come with substantial tax advantages. Depending on the way that your lease is structured, it may be possible to deduct all of your payments as business expenses, offsetting depreciation costs.

It is a good idea to speak with a tax professional to ensure that your leasing arrangement qualifies as a business expense, and can be fully written off against your end-of-year tax bill.

Make Sure You Have A Proper Lease

2007-04-30T02:53:00.003-07:00

If your main business is being a property renter, you will need to make sure to use a first-rate assignment of lease forms to look after your legal rights. Luckily, it is quite painless to download lease assignment forms off of the internet, but this is not in truth adequate. The lease assignment forms that you come across will in general be satisfactory - they will cover all of the standard typical areas legally - but just before you sign and endorse that agreement, no matter what it is, you ought to get in touch with a lawyer. This is especially true if you are thinking about renting property. There is simply no reason to not seek advice from the legal authority of your district before finalizing your lease assignment. And the good thing about this is you could even find out something that is just indispensable.

I have been a paying guest for a lot of years, so I do have my finger on the pulse. As a property-owner, I have had to be aware of all of my lawful privileges and obligations, and had to make completely sure that my lease assignment is completely airtight, This is particularly true in the locale I reside. Berkeley, California is a incredibly renter friendly city, so as a landlord it is usually extremely difficult to eject tenants, or even bring them to account for breaking the terms of their lease assignment. If I did not have one of the top assignments of lease's in the business, I would be pretty concerned about protecting my investment.

There are other things much more important and essential than even a suitable lease assignment, even though that is a decent place to begin. One of these is doing a superior and meticulous background check on each tenant who proposes to reside in your rental property. Personally I think a background check is even better than a lease assignment for protecting you, for the reason that it will permit you to see if someone has proven themselves to be dependable and trustworthy, and consequently a respectably good renter in the past. No matter how good your lease assignment, it is nonetheless better to make sure to have a good renter to start with. It is just not worth the aggravation of having to evict someone otherwise, and with legal expenses and delays of many months, it can certainly take the pleasure out of what is otherwise a profitable business which usually if done right requires very little work. A clever landlord can be a lazy landlord, and will always be a wealthy landlord, so before you even think about looking at lease assignments, make sure that you are renting to dependable people.