How to Properly Finance Knuckleboom Trucks!

If the purchase of knuckleboom trucks is in the planning stage in order to start a business or to upgrade a fleet of an existing business, in-depth knowledge of commercial truck leasing and financing could be very valuable to know as it is probably the best way to acquire a vehicle for business purposes without…

If the purchase of knuckleboom trucks is in the planning stage in order to start a business or to upgrade a fleet of an existing business, in-depth knowledge of commercial truck leasing and financing could be very valuable to know as it is probably the best way to acquire a vehicle for business purposes without having to invest so much money up front.

The purchase of knuckleboom trucks through some means of financing usually requires that buyers have to pay about 20 percent towards the purchase price plus processing fees. The balance of the selling price, along with interest, is then paid on an installment basis. The good thing about this is that buyers can start their business with the newly accepted equipment as soon as the financing is approved by the lender.

If this option appears suitable for a business, following are some tips on how to successfully finance a commercial vehicle purchase.

  • Stay Within Budget – With the current economic climate, it is advisable to buy a used vehicle rather than a brand new one. Financing brand new knuckleboom trucks can cost as much as $ 250,000 depending on the features and upgrades that are desired. Along with the interest rate, the total cost would amount to several years of having to keep up with a monthly payment. On the other hand, a used vehicle typically costs about half as much of the original price. That means it is half the fiscal burden to finance a brand new vehicle. As for performance, a buyer may not even be able to tell the difference between used and brand new when it comes to how it operates.
  • Determine Reliability and Performance – In order to determine the performance and reliability of used knuckleboom trucks, have a professional mechanic inspect the vehicle prior to making the purchase. Paying a small fee for a mechanic to inspect it will save a great deal of time and money further down the proverbial road!
  • Negotiate the Cost – It is always appropriate to see if the seller will make any concessions on the listed price. Even a small discount a buyer gets from negotiating with a seller reduces the monthly payment and interest during the course of the loan. Lenders are more likely to approve a loan that is for a cost below the listed loan price for that vehicle as opposed to claiming to finance an amount that is greater than the listed loan price. Starting out repayment of a loan when that leaves the buyer 'upside-down' is risky – and lenders are trying to avoid risky loans completely!
  • Look for Low Finance Rates – A buyer with a good credit score should take advantage of that fact by finding prime lenders that offer low finance rates. A good credit score is highlyought after lenders and, regardless of which lender is chosen, the chances of qualifying for financing will always remain high. So take advantage of this and shop around to find the lender who offers the best rates.
  • Prepare for Financing Requirements Early – Make sure that all of the requirements for applying for financing are complete before looking for knuckleboom trucks. In most cases, the requirements needed to conclude loan qualifications and paperwork are: the down payment of typically 20 percent of the sale price; a copy of the buyer's CDL; a credit report and FICO score; and proof of income that will be used for satisficing the loan.

Qualifying for commercial truck financing is made less difficult by the fact that knuckleboom trucks are highly valued collateral. Best of all, preparing for proper financing is a great way to acquire these vehicles that leaves only the need to determine how to get the purchased vehicle back to the company!

Retail Buildings Commercial Loans

There comes a time in any successful business where there just is not enough space to hold all of the equipment and staff needed to keep up with ever increasing order volumes. Simply renting annexes to your current office space can temporarily mitigate the problem, but as the business continues to grow so will the…

There comes a time in any successful business where there just is not enough space to hold all of the equipment and staff needed to keep up with ever increasing order volumes. Simply renting annexes to your current office space can temporarily mitigate the problem, but as the business continues to grow so will the space needed. While it is a big step to go into debt in order to own your own retail space, it can also be an extremely important move towards firmly establishing your business. When you do decide to purchase retail space, retail building loans will be essential.

Even the most successful businesses rarely have the hundreds of thousands or millions of dollars necessary to pay cash for retail space. After all, in the early stages of growth most profits will be immediately reinvested in other capital expenditures or hiring additional staff. This is where retail building loans come in. A Commercial Loan Lender would be more than happy to loan funds to a successful small business with a solid track record – though you'll likely need to demonstrate that you've been in the black for 2 to 3 years and come up with some form of down payment.

The ultimate advantage to obtaining retail building loans is that once you are repaying a loan to a bank used to acquire a property that you now own, every principal payment is effectively a reinvestment into the value of your business. Rent money is gone forever – retail building loan principal repayments become equity, and the interest is reasonably deductible as a business expense to boot. Even if the business experiences financial difficulties, the value tied up in equity can still be used to mitigate losses and even function as a source of collateral or be leveraged to secure loans needed to get back on track.

Better yet, once a bank is appealing interest payments on that loan it may well view itself as a participant in the business. The necessary down payment on the retail building loans can sometimes take the form of an equity stake in the business itself, and the bank may be willing to reinvest additional funds in case the business runs into financial difficulty – this way the bank can cover its interests to the maximum extent it can. All in all, retail building loans are an extremely vital component of growing and sustaining any brick-and-mortar retail business.

Commercial Loan Defaults: Help!

In most cases when applicants take on commercial loans, they do not take time to critically analyze whichever they got the best deal possible. Many default in their loan repayment due to various factors. Quite undeniably, the business world keeps changing and hence business becomes gravelly affected. The changes that take place may require one…

In most cases when applicants take on commercial loans, they do not take time to critically analyze whichever they got the best deal possible. Many default in their loan repayment due to various factors. Quite undeniably, the business world keeps changing and hence business becomes gravelly affected. The changes that take place may require one to reevaluate his or her position when it comes to servicing the commercial loans.

Refinancing the commercial loan is a good idea if defaults become eminent. Below are some of the benefits of refinancing the loan.

1. Refinancing the commercial loan may allow the borrower to benefit from equity gains. The impact of this is that one's capital can be freed and used for other ventures. This alternative is often termed as cashing out. It provides the borrower with the chance to invest the equity in more productive investments that have a higher level of return.

2 The rates of interest offered by other lenders may have declined significantly and since taking advantage of this would be advantageous. If the loan repayments are reduced, the amount of cash flow is bound to increase which has a positive impact on one's financial strength.

3. Refinancing can provide the borrower with an opportunity to amalgamate the loans and realize an increase in cash flow and accordingly take full advantage of the built up equity.

4. This is an opportunity to increase the loan period and realize additional cash flow in the process. The borrower can also benefit greatly from the tax concessions.

The above mentioned reasons are juts a few of some of the factors that would lead to one to opt for refinancing when faced with difficulties of paying back his or her commercial loan. Every individual or corporate will be faced with varying circumstances that will dictate different kind of responses.

While making a decision to go for refinancing, critically analyze the repercussions. Access the entire impact of your decision in terms of the implications of tax, benefits of cashing your equity, the impact on the financial statement, investment opportunities and any savings that will be made from making this move.

Before the decision has been made, the loan covenants have to be revised and readdressed. Flexible terms will be negotiated and should be weighed out critically to avoid making heavy and unrealistic commitments. Refinancing can enable the organization or individual enjoy a business benefit which would have been lost if refinancing was not considered.

No Money Down For Commercial Real Estate Investors

There are many lenders private lenders through the country that offer low or no money down financing programs for real estate investors. Because they are private there are only one ore two lenders that fund investors nationally. Even the national lenders do not lend in every state. As such the focus of this article is…

There are many lenders private lenders through the country that offer low or no money down financing programs for real estate investors. Because they are private there are only one ore two lenders that fund investors nationally. Even the national lenders do not lend in every state. As such the focus of this article is to focus on the program requirements for those lenders who finance properties in the Chicago metropolitan area.

No Money Down

This means no down payment to purchase investment property. Many investors are longing for the old days that hard money and bridge lenders would lend based on the equity of the property only. Those where the days of uncontrolled appreciation and values ​​continued to rise beyond any logical means. Those were the days that novice investors thought that there was no way to lose money investing in property. The reality for many years there was no investment with a greater return than real estate.

The Bubble Burst

Then the out of control rising of property values ​​hit a ceiling, the bubble burst and instead of appreciating residential and commercial property began to lose value. As banks and conforming lenders lost money during this “mortgage crisis” so did private lenders and hard money funds. The response from the banks and conforming lenders were to tighten there lending requirements. Private and bridge lenders did the same. The number one thing was to require buyers to have skin in the game. That is investors were required to actually invest money in their projects.

Exit Strategy

More important than asking buyers to participate in their investment, private lenders who provide short term funds to REIs (real estate investors) became more strict in ensuring their clients would have a solid exit strategy. To ensure this they began to make sure the REIs would qualify for take out financing. As conforming lenders reduced their loan to values, increased the credit score requirements and generally tightened their compliance requirements, hard money and bridge lenders had to do the same. The REIs are tasked to have an exit strategy that is above reproach. To be a successful investor you must have a fool proof plan to pay off your short term lender and move into permanent financing.

Chicago Commercial Real Estate Investors

Through the country many hard money lenders rolled out of the market amidst mounting losses due to property values ​​going down and REIs unable to sell or refinance the properties. As the market stabilizes and private lenders understand the new realities of financing today they have come back into the market. I have found legitimate bridge lenders that would lend up to 100% of the cost to purchase and rehab commercial apartment buildings in the Chicago Area.

Purchase Rehab Private Financing Guidelines

Although the guidelines are different for every private funding source these guidelines are representative of many lenders have polled in Chicago.

  • Credit Score: 650 to 680 or higher
  • Assets: 3 to 6 months of mortgage payments or more
  • LTV: from 50% ARV to 75% of ARV depending on the property

If you qualify for these guidelines you may be able to purchase commercial apartment buildings with little or no money down.

Commercial Loans – Small Business Borrowing and Economic Data Considered

It seems that most of the economists know that our economic engine for employment is our small businesses. Unfortunately, after the “too big to fail” Wall Street bailouts of all the banks, the small business community did not get the juice it needed. Our smaller firms did not get the money they needed to borrow…

It seems that most of the economists know that our economic engine for employment is our small businesses. Unfortunately, after the “too big to fail” Wall Street bailouts of all the banks, the small business community did not get the juice it needed. Our smaller firms did not get the money they needed to borrow to stay in the game during the economic recession. Now that the recession has lingered far too long, and unemployment rates are going back up companies are not interested in borrowing money, even though it is now available.

This presents several problems. First, if small businesses are not expanding, and new business startups are not occurring, then we can not have job growth in the small business sector. Since 60 to 70% of our population is employed by smaller firms, without the help of the small business community we are stuck, without a direction to move in.

An interesting article in this regard was published on MSN Business News on the last day of June 2011 titled “US small business borrowing surges” by Ann Saphir which attempted to put a really nice little spin on things as it stated;

“Borrowing by small US businesses rose at a record pace in May, data released by PayNet Inc.,” and “overall volume of financing to US small businesses, rose 26 percent in May from a year earlier. since July 2008, two months before the collapse of Lehman Brothers and the near derailment of the world financial system. Dallas Fed President Richard Fisher on Tuesday said he expects 4 percent growth in the second half, more than twice the 1.9 percent pace in the first quarter. ”

As a former franchisor, I realize that when new businesses start, they have to hire people and employees. If new businesses do not start, then obviously they are not around to hire anyone. Each time my company set up a new franchise, that franchisee would immediately have to go out and hire four or five people. Our existing franchiseses as they expanded and got new contracts and increased their customer base they had to hire another five people, and so on.

That's how it works, the only problem is that the percentage of smaller companies that are willing to expand is not moving forward fast enough to accelerate our economy. As things move forward, albeit slower, and more credit becomes available that's a start, but it's not only the available credit that matters, it is the number of small business wishing to take out loans for expansion, or startups. Indeed I hope you will please consider all this and think on it.

Company Loans: Ensure Sufficient Funding for Your Business Operations

When you are planning to put up a business, regardless of its size, you will want to be certain that your finances are sufficient enough to up hold this new business venture. Try to look into the various types of business loans that are available to you. Financial experts can help you in learning to…

When you are planning to put up a business, regardless of its size, you will want to be certain that your finances are sufficient enough to up hold this new business venture. Try to look into the various types of business loans that are available to you. Financial experts can help you in learning to manage and control your business finances which should be your main concern.

There are a lot of loan providers who are ready to assist you in finding the funds you need and make sure that your cash flow will run smoothly. They will tell you the different types of business loans that are available and help you decide and choose the one that is appropriate to you and your business. Here are some of the options that may help you with your company loans:

Start-up funds. Almost all Australian banks offer this kind of loan for small businesses. Entrepreneurs will find this loan very useful to start up a business and purchase all the initial materials that they will need for the business.

Funds for business expansion. Most business owners avail this type of loan for their company or established business. When they find that their business is increasing confidently, they will need to dispense more money into it to keep up with their immediate customer's demand.

Funds for stock of goods. These business loans help businesses have enough stock of goods to up with the increasing demand of sales.

Funds for road vehicles. These loans are beneficial for business owners who can either purchase or lease vehicles that will be used either for their transport business or use it to bring and transfer commodities from their company to remote places.

Funds for necessary items. If a small business needs industrial equipment in their production development, renting may be a better option to consider, as purchasing these equipments will be very costly and is not a practical thing to do when you are just starting up your business.

Funds to finance your commercial company. Availing this type of loan should not be your problem if you own a small business as most financial establishments will offer you loan agreement secured by property and most of the time, they also offer great payment flexibility.

All these options and the support provided by the government to the commercial banks can help you with your company loans and allow your business to up up with the demands of the business world.

Small Business Loans Furnish Alternative Funding

Whether you're in the start-up stage or are well established, your company may need access to more cash than you have on hand. Small business loans are planned for just such conditions. There are a number of resources for these loans, with some being better than others, and the comparative advantages will depend upon your…

Whether you're in the start-up stage or are well established, your company may need access to more cash than you have on hand. Small business loans are planned for just such conditions. There are a number of resources for these loans, with some being better than others, and the comparative advantages will depend upon your special circumstances.

A Bank or SBA Loan

Financial institutions and the Small Business Administration both have loan programs specifically devised for small businesses. The dilemma with these loans is that they can be tremendously tough to obtain. Your individual assets are considered, paperwork is massive, the process can take a long time, and even if you get a loan, it may be for less than you applied for.

Nobody should be surprised that in an era of economic insecurity, loans are more troublesome to acquire. Grasping the situation does not make it any less difficult to tolerate, though. Even with the Federal Reserve insinuating that things are progressing, from the perspective of acquiring capital for your company, the picture continues to be futile.

Friends and Family

Whereas your family and friends are great people to put in your cell phone plan, they do not make for a good source of business capital. It can be incredibly appealing to turn to them, but the wise entrepreneur evades these predicaments like the plague. Nothing will ruin a relationship faster than mingling business into the formula.

Under the very best of conditions, your family or friends will loan you the funds, recommend really generous repayment conditions with no interest charged, and let you do what you want to do. Regrettably, the more familiar situation is that they're either demanding their money back consistently or they want to tell you how to handle your company now that they have a interest in its success. The situation is at best awkward and at worst tense.

Merchant Cash Advances

A factoring agreement between you and an alternative loan establishment can be a practicable, convenient solution for required money. If you have an established credit card sales history, you can sell projected credit card processing receipts for a reduction to the small business loans company in exchange for money now. Over the next several months, or even year, your payments for the cash will be dependent on a small, fixed percentage of your sales future sales.

You can expect that the turnaround time is going to be much shorter than at the bank or the SBA. However, with this program you are notably more apt to acquire the funds you desire and with the autonomy to use the funds as you see suitable. No family or friends are involved so the process is strictly business – a win / win transaction for those in need of small business loans.

How Will You Secure a Business Loan In The Current Economy?

They're an incredible quantity of business owners who have never heard of a merchant advance. This type of “business loan” is really becoming more and more accepted as banks are closing their pockets and making it more difficult than ever to acquire a custom loan. The market may possibly be presenting evidence of improvement, but…

They're an incredible quantity of business owners who have never heard of a merchant advance. This type of “business loan” is really becoming more and more accepted as banks are closing their pockets and making it more difficult than ever to acquire a custom loan. The market may possibly be presenting evidence of improvement, but financial institutions, which were burned so badly in the mortgage tragedy, continue to be unwilling to lend money.

A merchant advance is a financial agreement you create with a merchant loan, not business loan supplier. They use your credit card activity; processing sales and returns competently, depositing money into your bank account and guaranteeing your ability to do business, so it makes complete sense for them to use your future credit card sales as collateral. Best of all, they can furnish you with much wanted short term cash advances instantly.

Dealing with the Unforeseen

Being an entrepreneur is filled with unforeseen disputes and rewards. As you find your corporation requires a rapid addition of money, the bank is not the place to go. Unless you have excellent credit and an abundance of collateral, obtaining a bank loan can be an agonizing and slow encounter. Merely the application process can leave you worn out.

In contrast to a business loan, your merchant advance is based on your business qualifications and sales history. If you have been processing credit card payments for at least four months, you will likely meet the requirements for an advance. This advance is based upon your future profits forecast, sold at a reduction. You pay off your advance with a percentage of your credit card sales each month, the amount altering with your income.

What to do with Your Cash

There are many things you may select to do with your merchant advance. You may open your storefront into the space next door. You could settle money owed or unresolved bills with your contractors. You may select to initiate a new advertising venture to result in additional business. The choice is all yours.

Although, I would never, recommend you apply for a merchant advance solely for the experience of doing so, it is a great idea to talk with a merchant loans representative in advance of your requirement. Find out what they need, what kind of terms they provide, and how quickly they can turn around an application. That way, when you require the money, you will know quite how to proceed.

If your merchant account provider does not furnish cash advances, this may be a great instance to look around and find out if you can associate with a more cooperative firm. This will help to make sure you acquire the best rate for which you can qualify. Be sure there are never any closing costs or fees to apply, that is a sure alert of a bad company.

Things You Should Know About SBA Loans

If you are an American business owner, you have probably heard of the Small Business Administration (SBA). The SBA is a federal agency that was established to help protect the interests of small business in the United States. It is probably best known for its loan guarantee program, but it provides a wealth of other…

If you are an American business owner, you have probably heard of the Small Business Administration (SBA). The SBA is a federal agency that was established to help protect the interests of small business in the United States. It is probably best known for its loan guarantee program, but it provides a wealth of other resources and information for small business owners. Unfortunately, there are a lot of misunderstandings about the loan program in particular. If you are a business owner, there are some things you should know so you can decide if you can use the SBA to help your business.

One common misconception is that SBA loans are only for start-ups. This is simply not the case. While the SBA is willing to guarantee financing for some start-ups, it also guarantees loans for any business that meets its criteria as a small business and meets the lender criteria. This leads to the next misconception. The SBA itself does not lend money: it guarantees loans made by private sector lenders.

As a result, loan requirements can differ, even with the SBA behind them. Each lender can have different lending criteria, so if you are looking for a loan, you may be declined by one lender and approved by another. There is also the belief that SBA loans are a paperwork nightmare. This can differ by lenders as well. Some lenders have been approved for fast-track processing, so if you use them, you can expect to have fewer paperwork requirements than maybe even a conventional loan. Sometimes, smaller loan amounts can be approved with very minimal processing.

You may also have heard that you need a lot of collateral for an SBA loan. This is not necessarily true. In fact, the SBA has some loan products set up specifically for those who have little collateral or collateral that is not usually approved in conventional financing. As a result, the SBA backs more business loans in the United States than anyone else.

It's important to understand that the purpose of the SBA is to support and strengthen all kinds of small business. If you are a small business owner, no matter what the financial position of your business, it may be worth your while to consider applying for an SBA loan if you need funding for any reason. Even if your credit is good enough for conventional financing, you may receive better terms if you take the SBA route.

Just Because You Are Able to Get the Financing Now Doesn’t Mean a Franchise Is Right for You

Well, it looks as if we are slowly emerging from recession, and luckily there are business loans still available with very low interest rates. There are also small business loans from the Small Business Administration available, which you may partake in. Now then, just because you can get the financing to start your own small…

Well, it looks as if we are slowly emerging from recession, and luckily there are business loans still available with very low interest rates. There are also small business loans from the Small Business Administration available, which you may partake in. Now then, just because you can get the financing to start your own small business, or perhaps a franchised outlet, does not mean you should. It is quite possible we could slip into a double dip recession, and be in a less-than-adequate position in our economy sometime between now and the next 15 months.

Therefore, if you were to start your business, and we stay in a recessionary posture in our economy, you may have trouble making a profit. If you can not make a profit, you can not run your business at a loss forever, and you will have to file bankruptcy, and you will be able to pay those loans back. Are you beginning to understand the real risks here? The problem with borrowing money is that you have to pay it back, and it is far too unfortunate that a good amount of our population has over-charged their credit cards, without considering the consequences that they will be paying on those cards for a long time into the future.

Because our economy appears to be very slowly recovering, not all sectors of our economy or all industries are recovering at the same rate. For instance, the real estate market is not doing too hot, whereas, retail sales have slowly been on the uptick. Of course all that could change too, and there before it matters what type of franchise you buy, what industry you will be participating in, and if you have the personal perseverance to stick it out and see it through. You're also going to need more money than merely the amount needed to purchase the franchise.

If sales are slow and not at optimum then the franchisor's business model will not be performing at its peak either. This means that it will take longer to get an operational profit, or retain a reasonable return on investment. Even if you talk to franchisees of the franchise system you are considering on purchasing which have reached their return on investment, it does not mean you will be able to reach it as quickly. The economic times have changed. Before you go sign your name to hundreds of thousands of dollars of loans, so you can start a business of your own, and find yourself gainfully employed again, I hope you will please consider these words of wisdom and think on it.