Equipment Finance Advisor

10 Golden Rules for Implementing IP based Telephony System

2012-01-08T09:19:00.000-08:00

Equipping Small Businesses for Success

2011-12-06T17:57:00.001-08:00

Equipping Small Businesses for Success

William G. Sutton, CAE
President and CEO, Equipment Leasing and Finance Association

Most small businesses require equipment in order to operate, from computers to furniture to fleet cars, but simply don’t have many funding options. Aside from internally generated cash flow or credit lines, businesses interested in acquiring equipment require other choices for financing their capital spending.

Many finance companies, from commercial banks to manufacturers and smaller, more specialized commercial finance companies around the country, offer a variety of options for small businesses who want to acquire equipment.

Knowing the financing options available for equipment acquisition will enable you to get the most for your business without hamstringing your budget or your company’s future. Remember, you make money by using equipment, not necessarily by owning it.

Benefits of Equipment Financing In Uncertain Conditions

The current market situation finds equipment financing as vital and available as ever, enabling businesses to secure the assets they need. The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index, which reports economic activity for the $521 billion equipment finance sector, showed new business volume for August 2011, the latest data available, was up 33 percent over the same period in 2010.

Despite some gains businesses are experiencing, economic recovery is slow. For businesses short on cash, equipment financing offers the following benefits:

• enables expense planning

• maintains cash flow

• preserves capital

• requires no down payment

• can provide 100 percent financing.

The flexibility of equipment financing, especially leases, is another key benefit that can enable customized solutions for a business’s accounting, tax or cash flow needs. Leases are available that allow for seasonal business fluctuations, lower monthly payments while a project is ramping up and the equipment is not yet generating revenue, and other specific circumstances a business may experience.

Availability of Credit

Access to credit is one of the many benefits equipment financing provides in a restricted credit environment. According to a study released in August 2011 by the National Small Business Association, 73 percent of small business owners report that their business had been impacted by the credit crunch. Among small business owners for whom capital availability has been a problem, 36 percent say that they have been unable to grow or expand the business.

However, credit approvals in the equipment finance industry are historically higher than those for bank loans, and have been improving steadily, according to data from the ELFA. The role of the equipment finance industry in providing credit to businesses has wider economic impact, since in a typical recovery most job growth is generated by small firms.

Advantages for All Business Cycles

In addition to market-sensitive considerations that make equipment financing attractive to businesses, its operational advantages provide benefits in all economic cycles:

Access to Equipment Expertise

Many equipment finance companies have special relationships with manufacturers and distributors. This expertise also enables the best possible lease payment terms since their knowledge and experience with various equipment types allow equipment finance companies to accurately set the residual rate—the value of the leased equipment at the end of the lease term—for your equipment type.

Equipment Obsolescence Management

Funding equipment such as IT, communications and medical/healthcare equipment through leasing, loans or other financing arrangements helps manage equipment obsolescence by enabling updates. Certain leasing finance programs can allow for technology upgrades or replacements, so the risk of being caught with obsolete equipment is lower with leasing than with other equipment acquisition methods.

No-Hassle Equipment Disposal

Financing also allows upgrading without having to manage equipment disposal and other ownership burdens. Particularly with computers and other technology devices, disposal can be a complicated issue, governed by federal, state or local regulations, which equipment finance companies are well positioned to handle.

Better Risk Management for Risky Times

The risk of equipment ownership is a consideration for businesses regardless of business cycles. Investing in large capital expenditures represents a big financial risk, especially to small companies. Even with low interest rates that make purchasing attractive, the potential consequences of ownership can erode the upfront benefits. Risks incurred from managing assets, such as inconvenience, inexperience, obsolescence and loss of profitability, can be dramatically reduced through the transfer of equipment ownership to the equipment financing company. Financing removes many unnecessary risks, allowing businesses to focus on their core competencies.

Outsourcing Equipment Management

Businesses have cut back staff significantly over the last few years, and most businesses lack the resources or knowledge to efficiently manage and sell their old equipment and purchase new. The convenience of having equipment managed by a third party, such as an equipment financing company, essentially outsources the equipment management function.

Valued Equipment Consulting

Most importantly, the equipment financier can be considered a valued consultant, providing additional benefits through lifecycle asset management solutions. Financing companies can provide dependable asset management, which helps businesses track the status of equipment, schedule upgrades, and receive full equipment lifecycle services from installation to disposal.

Equipping Business for Success

Equipment leasing and financing plays a significant role in helping all types and sizes of commercial businesses in the United States to acquire the equipment they need with increased flexibility, regardless of business conditions. The role of the equipment finance industry in funding the capital expenditures businesses need to operate and grow contributes not only to businesses’ success, but to U.S. economic growth.

Businesses who want to learn more about how they can incorporate equipment financing into their business strategies may visit www.EquipmentFinance101.org. This informational website has a wide range of resources, including a review of the various types of financing, a glossary of terms, a lease vs. loan comparison and questions to ask when financing equipment.

©Equipment Leasing and Finance Association 2011. Reprinted with permission.

William G. Sutton, CAE, is President and CEO of the Equipment Leasing and Finance Association, the trade association that represents companies in the $521 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. This year the ELFA is celebrating 50 years of equipping business for success. For more information, please visit www.ELFAOnline.org

The Medical Device Industry's "New Normal" | Qmed

2011-11-15T08:09:00.000-08:00

The Medical Device Industry's "New Normal" | Qmed

Financing Receivables: The Good, Bad, & Ugly | Hawkeye Management

2011-10-25T10:51:00.000-07:00

Financing Receivables: The Good, Bad, & Ugly | Hawkeye Management

The Sunny Side of the Durbin Amendment

2011-10-02T18:20:00.000-07:00

The Sunny Side of the Durbin Amendment

Convenience stores successfully introducing their own branded foodservice items, positioning themselves for greater overall sales as convenience-seeking consumers consolidate purchases: Packaged Facts

2011-09-04T17:11:00.000-07:00

Convenience stores successfully introducing their own branded foodservice items, positioning themselves for greater overall sales as convenience-seeking consumers consolidate purchases: Packaged Facts

Alternative sources energize businesses - Pittsburgh Tribune-Review

2011-07-04T08:30:00.000-07:00

Alternative sources energize businesses - Pittsburgh Tribune-Review

Twitter / @Ian Liddell: USDA Renewable Energy Gran ...

2011-05-21T18:59:00.000-07:00

Twitter / @Ian Liddell: USDA Renewable Energy Gran ...

Customer Finance Programs Key to Increasing Sales

2011-05-18T18:21:00.000-07:00

Customer Finance Programs Key to Increasing Sales

A Surefire Way To Increase Sales

2011-05-08T10:26:00.000-07:00

By offering leasing to your customers, you remove the primary objection that most prospects have in acquiring new equipment: having to ask a bank to lend them the money to buy it.

Offering an option to lease will increase your sales by giving your customers a way to take home your equipment now. Imagine a client who has to go through the process of applying for a loan. This requires a few trips to the bank, lots of probing questions about their financial situation and their clients, and much waiting around. Given the difficulties of obtaining a loan, the project is much more likely to wind up on the back burner, and you’ve lost a sale. By offering a leasing option, you can offer your customer a new line of credit. In today’s unpredictable market, this can be extremely valuable to a prospective client.
A leasing option can also make selling larger equipment or multiple pieces of equipment go much more smoothly. Imagine offering your premium model for an extra $50 a month as opposed to an extra $3,000.

By offering a lease option, you will be able to quote a monthly payment during your sales call. It’s much easier for a customer to swallow a payment of $400 per month than an outlay of $15,000, or even a few thousand dollars down. By offering a monthly payment, your customer can focus on the benefits of owning your equipment; namely their increased efficiency, which will in turn save them time and money. You will be able to close the sale by comparing their increased efficiency to the inexpensive cost of leasing your equipment.

Finally, a lease plan can increase the likelihood of repeat business by making it easy for a client to purchase more or trade up their existing equipment. Once the client is satisfied with a lease and familiar with the process, it is much more acceptable to repeat.
Now picture your next sales call. Your client: “Gee, I’d sure love to purchase your Super G model XXVI, but it’s just not feasible with our budget.” You: “Have you ever thought about leasing?” Your client: “Hmmm… Leasing? Tell me more…”

How to read and understand your credit report

2011-02-28T05:28:00.000-08:00

How to read and understand your credit report

Bump up your credit score in a hurry

2011-02-28T05:10:00.000-08:00

Bump up your credit score in a hurry

Credit reports: How to contact the credit bureaus (credit reporting agencies)

2011-02-26T09:56:00.000-08:00

Credit reports: How to contact the credit bureaus (credit reporting agencies)

The ABCs of Business Credit - Entrepreneur.com

2011-02-12T11:34:00.000-08:00

The ABCs of Business Credit - Entrepreneur.com

7 Tricks of the Financing Trade

2010-11-27T13:39:00.000-08:00

7 Tricks of the Financing Trade

SBA Webinar - SBA Loans Offer More Middle Market Lending Capability

2010-11-20T08:37:00.000-08:00

bank_5000-1182.pdf (application/pdf Object) Is your bank prepared to make $5 million small business loans? The historic Small Business Lending Act, signed into law in October, more than doubles the loan size that qualifies for the Small Business Administration (SBA) loan guaranty programs. Specifically, the landmark legislation increases the SBA 7(a) and 504 limits from $2 million to $5 million (and for manufacturers and certain energy-related projects seeking 504 loans, to $5.5 million). This huge increase in loan size creates an unprecedented opportunity for small business lenders to grow their business.

The size of the loan isn't the only thing that changes for lenders. The customer will change too. Certainly the prospects of increasing their borrowing will appeal to some existing customers. In addition, the $5 million loan size and SBA guaranty provision will also attract new applicants from larger companies and unfamiliar industries. Some of these new customers will have management teams with greater financial sophistication and a different approach to business relationships than the Main Street customer that is the traditional mainstay of small business lenders. Instead of business owners, you will be dealing with Chief Financial Officers. They will be comparing the terms you offer to those of conventional loans offered by larger banks and may expect you to negotiate accordingly.

Bigger loans also means bigger risks. Converting the $5 million loan opportunities into profitable business requires lenders to adapt a fundamentally different approach to underwriting and risk assessment. Managing loans that are over twice the size of past loans means marketing, sales, back office, and servicing all need to be adjusted. Making $5 million loans is more than a new product launch -- lenders are truly entering a new business arena.

This Coleman Webinar will identify the management mindset that must be adopted, issues you must address, plus the skills and infrastructure that must be developed to capitalize on this new $5 million opportunity. Three national experts on SBA loans and small business lending will address these questions:

* Prospects: What industries and types of companies will now fit into the much larger credit box?
* Marketing: How do I reach these new potential customers?
* Underwriting: How do how I learn the industry outlook and the strength of an applicant's competitive position?
* Do I need to move beyond a local industry assessment to a regional or even national assessment?
* Compensation: How does compensation for sales and management need to be adjusted when the loan size more than doubles?
* Processing: Has my SBA submission software been updated to incorporate the larger loan sizes? Do larger loans require additional documentation for the SBA?
* Servicing: How is it different for a $5 million loan?

In addition, these experts will answer your questions. You can pose your own question by asking it directly during the webinar. Alternatively, you can submit your question via email to Bob Coleman, the webinar moderator, and he will ask the question without identifying its source.

Christopher G. Hurn, Chief Executive Officer/Cofounder,
Mercantile Capital Corporation, Orlando, FL
Mercantile Capital Corporation (MCC) reports that it is "the only company nationwide that exclusively focuses on providing SBA 504 loans for business owners to finance commercial property". Chris leads MCC's business development, underwriting and marketing functions. Previously, he worked as a senior management consultant, financier and executive with GE Capital, Heller Financial and NAI Realvest.

Annmarie E. Murphy, Sr. Loan Officer / Owner,
Live Oak Bank, Colorado Springs, CO
Based on SBA 7(a) loan volume, Live Oak Bank ranks #3 nationally with gross 7(a) loan volume over $375 million for FY 2010 (ending September 30). Opened in 2008, Live Oak operates as a commercial bank focusing on SBA loans. Annemarie specializes in dental and veterinary financing with a concentration in expansion and construction loans. During her career, she has successfully closed over $225 million in healthcare loans. In 2005, Annemarie was named the SBA Financial Services Champion of the Year. Before joining Live Oak Bank, she served as Vice President, Healthcare Finance Division, United Western Bank; Regional Account Manager for CIT; and as an Assistant Vice President for Bank of America.

EXCLUSIVE: PayNet says small business loans rise | Reuters

2010-11-03T04:46:00.000-07:00

EXCLUSIVE: PayNet says small business loans rise | Reuters

10 Ways to Get More Sales From Existing Customers

2010-09-06T09:13:00.000-07:00

10 Ways to Get More Sales From Existing Customers

Manufacturing Growth Speeds Up - WSJ.com

2010-09-02T16:35:00.000-07:00

Manufacturing Growth Speeds Up - WSJ.com

Business Growth Insights

2010-08-07T08:57:00.000-07:00

Business Growth Insights

DEFINING A GAME CHANGING COMPANY | Equipment World | Construction Equipment, News and Information | Heavy Construction Equipment

2010-07-22T16:59:00.000-07:00

DEFINING A GAME CHANGING COMPANY | Equipment World | Construction Equipment, News and Information | Heavy Construction Equipment

Microfinance USA 2010 - Webcast

2010-07-04T17:45:00.000-07:00

Microfinance USA 2010 - Webcast

So Who Owns All the Gas Stations? (Part 1)

2010-06-22T08:18:00.000-07:00

So Who Owns All the Gas Stations? (Part 1)

For small companies, the credit crunch won't go away. Here's why. - WSJ.com

2010-06-21T05:24:00.000-07:00

For small companies, the credit crunch won't go away. Here's why. - WSJ.com

Petroleum and Convenience Payment Solutions - Fuel Retailer Payment Systems at the Pump and In-store

2010-06-12T06:00:00.000-07:00

Petroleum and Convenience Payment Solutions - Fuel Retailer Payment Systems at the Pump and In-store

PCI Compliance _ Hotel Article

2010-05-31T19:38:00.000-07:00

Hotel News Now | Hotels News - Article

Pallet_Recyclers_industry_publication_website.pdf (application/pdf Object)

2010-05-22T12:23:00.001-07:00

Pallet_Recyclers_industry_publication_website.pdf (application/pdf Object)

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Debit Fee Cut Is Rare Loss for Largest U.S. Banks - NYTimes.com

2010-05-15T14:11:00.001-07:00

Debit Fee Cut Is Rare Loss for Largest U.S. Banks - NYTimes.com

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CSP_Are_You_Secure_CS_0510.pdf (application/pdf Object)

2010-05-15T13:53:00.001-07:00

CSP_Are_You_Secure_CS_0510.pdf (application/pdf Object)

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To Lease or Not to Lease - Lease Financing - Entrepreneur.com

2010-05-11T18:14:00.001-07:00

To Lease or Not to Lease - Lease Financing - Entrepreneur.com

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Bringing Parity to the Party | CSP Daily News / Magazine | CSP Information Group, Inc.

2010-05-01T20:15:00.001-07:00

Bringing Parity to the Party | CSP Daily News / Magazine | CSP Information Group, Inc.

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Compliance Crush | CSP Daily News / Magazine | CSP Information Group, Inc.

2010-05-01T19:32:00.001-07:00

Compliance Crush | CSP Daily News / Magazine | CSP Information Group, Inc.

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How Health-Care Reform Will Affect Small Business - BusinessWeek

2010-04-21T02:37:00.001-07:00

How Health-Care Reform Will Affect Small Business - BusinessWeek

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Up-Selling vs. Up-Serving | SUCCESS Magazine | What Achievers Read

2010-04-12T04:43:00.001-07:00

Up-Selling vs. Up-Serving | SUCCESS Magazine | What Achievers Read

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PCI Compliance

2010-03-22T04:43:00.001-07:00

PCI Compliance

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Managing: Planning Now for an Economic Rebound, Financial Plan Article - Inc. Article

2010-03-20T09:29:00.001-07:00

Managing: Planning Now for an Economic Rebound, Financial Plan Article - Inc. Article

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The Sales Commission Dilemma | Street Smarts by Norm Brodsky

2010-03-20T08:22:00.001-07:00

The Sales Commission Dilemma | Street Smarts by Norm Brodsky

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Congressional Oversight Panel: Commercial Real Estate Losses and the Risk to Financial Stability

2010-03-10T04:19:00.001-08:00

Congressional Oversight Panel: Commercial Real Estate Losses and the Risk to Financial Stability

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Small Business Credit Report - The Entrepreneurial Mind

2010-03-03T18:04:00.001-08:00

Small Business Credit Report - The Entrepreneurial Mind

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Are Trade Shows a Waste of Time? - You're the Boss Blog - NYTimes.com

2010-02-25T17:08:00.001-08:00

Are Trade Shows a Waste of Time? - You're the Boss Blog - NYTimes.com

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Equipment Vendors Who Will Thrive in Today's Market

2010-01-31T12:29:00.000-08:00

Equipment vendors today face challenges never before encountered.
Business owners they call on are very hesitant to purchase new
equipment when they are laying off employees. Being able to cost
justify the purchase is more important than ever. Having convinced
the customer to purchase they now are often frustrated by their
customer not being able to secure financing.

Smart vendors are realizing the need to partner with equipment
finance companies who are willing to partner with them to
pre-qualify businesses before their sales rep ever pick up the
phone or get in their car .

Vendors who solve problems for businesses capable of securing
financing will be the ones who will survive the greatest economic
challenge since the Great Depression.

http://www.youtube.com/watch?v=lY1dJV3Tm6U

Retaining Star Performers in Trying Times - Best Practices - Harvard Business Review

2009-12-21T05:32:00.001-08:00

Retaining Star Performers in Trying Times - Best Practices - Harvard Business Review

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Small Business Credit Cards Now Carry Sizeable Risk - WSJ.com

2009-12-17T18:47:00.001-08:00

Small Business Credit Cards Now Carry Sizeable Risk - WSJ.com

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Credit Score Information: About FICO Scores - myFICO.com

2009-12-16T18:31:00.001-08:00

Credit Score Information: About FICO Scores - myFICO.com

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The Ultimate Prospect Qualification Tool | Sales Machine | BNET

2009-12-02T04:30:00.001-08:00

The Ultimate Prospect Qualification Tool | Sales Machine | BNET

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Monetizing Service Contracts with Related Equipment

2009-11-18T05:56:00.000-08:00

Many vendors and manufacturers have million dollar contracts secured with large companies but cannot secure the internal financing to provide the end user with the necessary equipment .

A program is now available to allow your customer to leverage that contract to get the equipment needed. This allows your client to obtain the cash now instead of waiting years to get paid.

Minimum dollar size is usually $ 1 million and requires the end user of the equipment
to be bond rated BB or better. Service contracts must have a component of equipment.

Paynet - The Litle Known Alternative to Dun & Bradstreet

2009-10-13T17:45:00.000-07:00

Paynet is a little known business reporting agency. More than 200 leading US Lenders anonymously report more than 16 million finance contracts worth greater than $ 700 billion. Its database is updated weekly and is used by commercial equipment lenders to make loan and lease decisions .

It was started in Skokie IL in 1999 to find a better way of predicting business owners ability to repay equipment installment debt . Credit bureaus are highly
biased towards paying personal credit obligations . Paynet instead depends on large commercial lenders reporting anonymously on a weekly basis .

Dun & Bradstreet has historically been the credit source commercial lenders
have relied upon . Unfortunately it is often inaccurate or biased towards the
few big companies who bothered reporting to them . It also can be manipulated
giving an unfair advantage to those who know how to self report their business trade references.

Paynet has made it easier for good paying business owners get larger installment credit without having to provide business tax returns . It also enables them to get credit with more conservative lenders at better rates .

Equipment Finance Agreement Benefits

2009-09-08T18:25:00.000-07:00

Many business owners today prefer equipment finance agreements to traditional $ 1 or 10% buyout leases. Customer has option to handle their own sales and property taxes.

Lease company requires physical damage insurance coverage and allows the business owner to decide level of general liability insurance. Early payoff options are typically discounted earlier and more aggressively with equipment finance agreements.

SBA 504 Loans

2009-08-29T09:35:00.000-07:00

SBA 504 Loans are now available through Accord Leasing . For business owners interested in gaining wealth thru ownership of real estate property instead of making rental payments .

SBA 504 loans have been historically under promoted by banks who often prefer 7A Loans due to 90% SBA guarantee. Many business owners, however,will find the longer term , fixed rates , and less money down requirements more favorable .

Rates are at historical lows right now with fixed terms up to 20 yrs at rates between 5% and 6% .