Commercial Asset Finance Leasing Solution

Commercial Asset Finance Leasing Solution

Asset finance is a boon to small and medium enterprises as it saves them precious working capital and helps them to improve their cash flow by letting them lease/hire expensive business critical assets rather than buying them outright.

In general asset finance is available through two routes - hire purchase and leasing. Under a hire purchase arrangement, the ownership gets transferred to the customer at the end of the hiring period while in a leasing arrangement the customer must return the equipment back to the leasing company.

In both the options, the customers must pay an agreed monthly or quarterly rental for the length of hiring/leasing period. In this article we will talk about leasing and its various aspects.

This non-transferring of the ownership is the fundamental characteristic of the lease arrangement. During the period of lease, the customer pays monthly or quarterly (or whatever is agreed) to the leasing company. This rental payout is deductible from income in some cases (except for a finance lease).

There are various types of leasing:

Finance Leasing


This comes closest to the hire purchase option of asset financing with one major difference - the ownership of the asset doesn’t get transferred to the business customer at any point of leasing period.

In this arrangement the customer pays the full cost of the equipment, plus the charges in the form of lease rentals over the period of the lease. The customer also gets to bear risks and enjoy benefits usually associated with the ownership without actually owning the asset - he must bear the maintenance and insurance cost of the asset and will have to treat the asset as a capital asset in the balance sheet.

At the end of the lease term, usually the asset in question is re-leased to the customer at much reduced payments or is sold second-hand to an unrelated third party.

Operating Leasing


While the term for a finance lease is long, an operating leasing is usually resorted to if the need of equipment is for a shorter period. Here the full cost of the equipment is not recovered and at the end of the lease term, usually the equipment is leased to some other customer or is sold second-hand.

This type of lease is fairly common for cars and construction equipment for whom there is a mature and ready second-hand market. The usual period is of two to three years or longer, but always short of the working life of the asset. The leased asset would not go in the balance sheet as part of capital assets. Rather the lease expenses will be treated as deductible expenses in the income statement.

Contract Hire


This is a variation of an operating lease and is mostly used for vehicles. With this option the customer gets the chance to use the new asset without bearing the risks associated with ownership. Here leasing companies agree to bear some part of the management and maintenance expenses. You need to work out full details with the leasing company.

Small Business Loan Information - Small Business Loans Are a Real Business Boon

Small Business Loan Information - Small Business Loans Are a Real Business Boon

If you want to start a business or keep a somewhat faltering business afloat, a small business loan  may be just the business help that you need. You may want to seek out business management counselling firm on the internet to explore all of the options such as business debt consolidation or business debt settlement that are tools often used to deal with business debt that is rapidly becoming overwhelming. However, another option may to obtain a small business loan  at a good rate, that will allow the payoff of other existing business debts that may be at a higher interest rate, or, worse yet, becoming delinquent.



There are many lenders who offer small business loans and lines of credit up to $175,000.00 to qualified businesses with good credit ratings. Another very strong small business loan lender is the U.S. Small Business Administration, which specializes in providing small business loans to stimulate the business community. This independent agency has been servicing the business community since 1953, and it is dedicated to stimulating business growth in America.

It offers a number of products that are designed to aid small businesses but the most frequently used is the loan guarantee, wherein the agency is not the actual lender but it offers a guarantee to the lender which enables the business to obtain the loan it needs. The SBA programs specifically try to aid woman and minority entrepreneurs in establishing businesses.

The SBA offers small business loans and also offers small business grants that are awarded in response to a grant proposal written by the small business operator. These products are awarded without a requirement for repayment. However, if the business does not qualify for one of these grants, there are plenty of small business loan packages that will fit the needs. To apply for a small business loan you will need to have E.I.N. or Employee Identification Number and a Certificate of Limited Partnership. You will need a copy of the business plan and you will need to list each and every existing creditor, in addition to the accounts receivable. For a small business loan you will have to demonstrate that the business is basically solvent and that the incoming cash flow is sufficient to repay to loan without tapping the business assets, For example, if your own the retail space in which the business is located, it cannot be sold in order to raise the necessary funds to repay the loan.

A small business loan may be an alternative to a form of debt consolidation or other debt management product. It can be used to pay off existing debts or at least pay down the debts to reduce the amount of interest owed and ultimately paid. However, taking out a small business loan will mean that the business is assuming a new debt. It will be to the benefit of any business person to confer with a debt management consultant prior to taking out a small business loan. Speaking with a trained business debt management consultant about the business debts can allow the business owner to put them into perspective. Additionally, the business debt consultant will be able to educate the business owner regarding the many various options to deal with business debt. This will make the individual aware of all of the options and in a good place to make an informed decision regarding taking out a small business loan or making use of any other business debt remedy.

Once all of the options are explored with a business debt management consultant, it may be that a small business loan is the best product to cure the existing business debt or to allow the business to grow.

Check these links to learn more:

http://www.curadebt.com/about.asp
http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp

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The Ostrich Festival was created in Arizona in 1989. It is held annually and attracts thousands of fun-lovers, who enjoy attractions, music, parade and ostrich races. Arizona is the 48th state and last of the contiguous states admitted to the Union, achieving statehood on February 14, 1912 – the 50th anniversary of Arizona’s recognition as a territory of the United States. Arizona is noted for its desert climate, exceptionally hot summers, and mild winters, however it also features pine forests and mountain ranges in the northern high country, with cooler weather than in the lower deserts. There is some disagreement over the proper etymology of the name “Arizona.” Possible origins supported by historians are the Spanish sentence ‘zona arida’ , shortened to Arizona or the Basque phrase aritz ona, “good oak,” and the O’odham phrase ali ?onak, “small spring”.

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