A Brief Look at Equipment Finance Lease

Equipment lease takes many forms. Equipment finance lease is one of these forms, which differ from the ordinary lease in that, the equipment is bought specifically for the company intending to lease it.

Sometimes you find companies requiring certain equipment. However, due to different factors the company might not be able or willing to raise the capital amount required to cover the cost. Normally a business will not function properly without the necessary capital equipment, which can range from simple office furniture to heavy plant machinery. The company might also need the equipment only for a limited period and therefore purchasing them would be a waste of resources. Finally, there might be some benefits associated with leasing the equipment rather than purchasing them leading the company to opt for the lease. Some of the common benefits that would lead to such a decision include tax benefits and elimination of unexpected repair costs that keep on coming up.

In ordinary equipment lease arrangements, the company hires the equipment for a given period only. There is also the option to upgrade to new or more advanced equipment if you can afford the new rates charged. This arrangement favors the company because the equipment will not appear in the balance sheet and it will enjoy the benefit of no depreciation. This makes it quite different from the equipment finance lease, which allows one to claim depreciation, running costs and interest payments from the running costs of the business.

Implications of Equipment Finance Lease

An equipment finance lease is the arrangement, which helps the company to acquire the required equipment easily on lease. With this arrangement, the company will be required to identify the equipment that is required. The company will also need to choose a finance firm, which will purchase the asset. The company will then be able to use the equipment during the lease period paying installments or rentals for the use of the equipment. Both parties benefit from this arrangement, as the finance company is able to recover the amount or a large part of the cost and also earn interest from the rental. The company will have benefited from the use of the equipment without necessitating purchase. At the end the company has the option of gaining ownership for the equipment either through payment of the last installment or through negotiation for a given purchase price.

When you want to acquire an equipment finance lease, it is important to get advice from your finance company in order to get the one that is most suitable for your business. Some of the main reasons why seeking advice before acquiring finance lease agreements is crucial include:

• When you require assistance with heavy equipment agreements that require special submissions
• When you have no documentation
• When you want to get assistance on the best finance form for tax purposes

Find Restaurant Financing For Restaurant Expansion

Find restaurant expansion generally refers to business owners looking for financing to expand their existing restaurant. Businesses choose to add new restaurant locations when they experience a steady increase in profits and want to attract more customers. There are many financing resources available to expanding businesses.

If a business already has most of the funds it needs for restaurant expansion, but still needs additional financing, it may turn to factoring. Factoring allows a business to sell its accounts receivables at a discount to another company, called a factor. Factors require businesses to process credit card orders. Factoring is not considered a loan, and, depending on the factor, a business can obtain hundreds of thousands of dollars within a week’s time.

Another way to find restaurant expansion financing is to obtain a construction loan from a lending institution or construction company. Lenders usually require personal and business financial documents to assess the risk posed by a business. The higher the risk, the less likely a business will obtain the loan it needs. Construction companies may also offer financing that only requires a down payment and collateral to secure the loan. These companies generally provide better loan terms and interest rates than traditional lenders. One benefit of construction company financing is no payments until the construction is completed. Like with any financing option, the loan amounts, interest rates, and repayment plans vary by lender and by the applicant’s financial history.

Find restaurant financing generally refers to a potential business owner looking for funding sources for a new restaurant business. Once an individual has an idea of what kind of restaurant he or she wants to buy, funding that purchase is the next step. Restaurant financing is not much different from other business financing. Start-up business owners usually have some difficulty securing funds from traditional lenders, such as banks. Therefore, they look to other financial resources, including the Small Business Administration (SBA), private investors, non-traditional lenders, and many others.

The SBA’s 7(a) loan is available to small business owners who have been denied traditional loans and who have proof of ability to repay the loan. The SBA generally defines a small business as employing fewer than one hundred employees, and their loan funding is available for most business purposes, including restaurant financing.

Another way to find restaurant financing is to consult a private investor. In exchange for large sums of funding, private investors usually ask for a certain percentage of the business’s profits or to have a voice in business decisions. It’s important for business owners to find investors who provide equity, not debt. Debt means that the owner would have to pay interest on all or part of the amount invested.

Business owners may also look to financing from the restaurant’s current owner in order to find restaurant financing. When a seller is willing to finance a restaurant purchase, it shows that he or she is confident in the profitability of the business.