Working Capital Cycles

In today's business world, you'd like your company to grow. If it doesn't, there is a good possibility it will not make it. However, so that you can accomplish development, you might want to increase your business capital. There are numerous ways you can do this, but one of the better is usually to look at leasing your company's equipment.

Attributes of Leasing Equipment.

If you purchase equipment outright, you'll either need a substantial amount of cash or you will need to secure a loan. In today's faltering economic climate, lenders are establishing very strict guidelines for virtually any kind of loan. This will make it difficult to secure the capital you need to purchase equipment outright. When you pay with your cash you have on hand, you will probably find that you are strapped for cash in the future.

Leasing equipment enables you to keep your money however get what your company needs to be able to grow and expand. There are many of different types of lease programs, including some where you can buy whatever you lease just for a tiny part of the value. The majority of the programs are made to get the highest tax benefits, too.

Rather than pay out a single enormous one time for your purchase, it is possible to break the cost up into affordable monthly bills. In most cases, the leasing company is answerable to all maintenance and repairs as the equipment is under lease. This may really help you save a huge amount of money should something go wrong.


 How Leasing Raises Your Business Working Capital.

As you are don't have to pay for the pricey items you need all at once, you can keep your cash for other purchases or expenses. This provides you with you the chance to increase your capital and put effectiveness elsewhere. Since there is this kind of broad range of possibilities on the subject of the sorts of equipment which may be leased, it's almost a certainty you will find exactly what you desire.



In Closing.

When it comes to maintaining your company's business capital, you will find the best method to accomplish this is by leasing equipment. From medical screening equipment to large machinery, you'll be amazed at what is available. You can keep the cash for other outlays or purchases and still have exactly what you need for your company to continue to grow. It is best to talk to your tax specialist to determine which of the leasing programs will are perfect for your needs and help lessen your tax rate.

Capital Financing For Businesses

Financing a business in Canada can often leave the business owner/financial manager feel like they are operating in reverse gear .The sources of finance for businesses don't have to seem unattainable if you've got some of the basics under your belt... along with some expert advice which never hurts. Let's dig in.

Timelines are not what you might be associating with your company's finance needs. However, the reality is that almost all the financing you require has some sort of timeline attached to it - typically short/ intermediate and long term. And in today's relentless pace of business and technology the ability to adapt mid stream is quite often a necessity.

What then are some of the elements of understanding what financing you need and when. In our clients mind it's usually cost, and of course that's a factor. Some financing sources present a certain element of risk. Take for example Canadian chartered bank financing - low cost and plentiful if you qualify. Those qualifications often come with debt and liquidity ' covenants ' - Failing to meet those has the potential to put your entire business at risk.

 Knowing what the big boys call your ' capital structure ' is important also. - that will affect the amount of debt you can take on. In some cases Canadian business owners and financial managers have found themselves in a position that their industry or the economy creates severe financing pressures - i.e. access to liquidity, etc.

Top experts seem to always agree that arranging financing in advance makes most sense - that sense of desperation never seems to impress the lender/banker/financier

In some cases refinancing your whole business with a focus to turning short term debt into long term might makes sense. Knowing you cash flow capabilities is key here.

What then are those business financing sources, and can we put some timelines on them?

SHORT TERM - typically one year in nature

A/R financing

Inventory finance

Bank lines of credit

Asset based non bank lines of credit

Purchase Order/Revenue Financing

Tax Credit Monetization

Bridge loans

INTERMEDIATE TERM - typically 3-5 years

Equipment financing

Working capital term loans

LONG TERM - 5-25 years?

Commercial mortgages

Mezzanine financing

If you want to reverse gear on financing a business properly seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can ' right track' you to sources of finance for businesses that make sense.

Debt Consolidation Loans

A debt consolidation loan is, as its name suggests a loan that will consolidate all of your debts into one tidy package. The interest rate may be the same as the rates on the existing loans, or it may be somewhat less.

Defining the terms

Make certain that you have reviewed all the terms and clauses included in the debt consolidation loan before signing on the dotted line. For example, you should review the loan length, the interest rate, whether there is a prepayment penalty, and such terms as variable rate, fixed rate and balloon payment. If your consolidation loan applies to existing credit card debt, you should determine whether your cards must be surrendered to get the loan, and whether the balances are transferred to a new card, paid off, or whether you receive the cash and must do the payoffs yourself.


Benefits

The benefit for obtaining a debt consolidation loan is primarily to save money, but there are other advantages for those who reduce multiple debts to one payment monthly. You can probably save money on the interest rate, particularly if consolidating the debt means you can obtain a lower rate. Another advantage is the benefit of a single payment with a regular due date. You don't have to spend much time paying bills. Just set up an automatic payment and your bill paying is la minor part of your monthly duties. This type of regular prompt payment will make your credit report look better and better

Avoiding the pitfalls

For all the benefits that a debt consolidation loan can offer an individual, there are several drawbacks that you should be aware of before choosing to borrow additional money to solve your debt problems. If you are using this type of loan to bail you out from maxed out credit cards, you should certainly look at changing your spending habits in conjunction with the loan, or you can quickly end up in even more problems with larger debts. Consider getting rid of all your credit cards and switch to one debit card. Don't justify consistent overspending as an emergency. Create a budget and stick to it.

Find the best deal

It seems that finding the best deal would be logical, but many individuals looking for a debt consolidation loan take the first offer that they see and run with it. Often, had they looked further, they would have been able to obtain better terms, better interest rate and other accouterments of the loan. Take the time to review several loans and make certain to ask questions about each of the variables that affect the amount of your monthly payment. You won't want to keep applying and applying, as this can negatively affect your credit score, making the terms less desirable each time.

Reviewing interest rates

The main feature of your debt consolidation loan in most instances is the interest rate you will be charged during the duration of the loan period. Usually the rate of interest that the borrower is assessed depends on the credit report of the borrower. Credit scores higher than 700 make it easier to obtain the loan and generally means the terms of the loan are much more favorable to the buyer.