Creditone Finance is a leading equipment finance company that provides quick, easy, and competitive equipment financing options. Creditone Finance uses sophisticated technology to offer on-the-fly financing, helping small businesses get the much-needed equipment and financing they require to grow their business. In addition, Creditone’s committed to keeping our customers in mind as we strive to build strong professional relationships with each of them. This is why Creditone is your source for pre-approval financing and equipment financing. We offer our customers the same competitive rates, quality service, and flexibility they deserve.
If you’re looking for equipment finance, this may be a good time to consider a few different options. The economy has been difficult lately, which has reduced the amount of equipment finance companies, as well as the amount of money they are willing to lend. Many companies are also experiencing difficulty attracting and retaining new customers. This can have an adverse effect on cash flow and ultimately result in lower profits and lower sales for the company.
When equipment finance becomes hard to find, lenders often reduce the available cash flow that a company can access to improve its loan-to-value ratio. It is important to remember that the terms of the financing are set forth specifically to take into consideration not only the company’s current needs but also those of its future. As we stated in our previous post on working capital management, you want to make sure you can continue to meet these requirements during a tough market. To that end, it is absolutely essential that you develop and implement an effective working capital management plan to ensure that you can meet the obligations outlined in any equipment financing. Developing a good business plan will not only give you a clearer picture of your short-term cash flow problems, but will also help guide you toward long-term solutions. We encourage you to talk with one of our finance experts for more information on developing an effective working capital management plan.
One of the most common types of equipment finance is referred to as equipment leases. Equipment leases can be used for a wide variety of reasons, ranging from purchasing a specific number of machines and associated parts, to providing cash flow by capitalizing on the current value of existing machines and equipment. Equipment leases are often issued to businesses based upon the type of machines and associated parts that are being leased. Some equipment finance companies may even require specific covenants or other written conditions before they will issue equipment leases. If you are considering equipment leasing as a means of obtaining required cash, we recommend that you work closely with your financial adviser, as we can provide you with helpful advice based on your individual business situation.
Another common equipment finance method is referred to as tax depreciation. Tax depreciation is a simple tax method used to offset the cost of depreciated machinery over time. A tax depreciation calculator can be used to determine how much a particular piece of equipment is worth according to current tax laws. Many small and medium-sized businesses use tax depreciation to significantly reduce their cash flow costs.
Businesses often use equipment financing to finance their growth and operations. This includes purchasing inventory and processing orders, and even acquiring new equipment as needed. However, in order to obtain working capital from equipment financing, a business typically must obtain a working capital loan from a lender. A working capital loan can be used for any purpose, but the most common use is to obtain funds to pay off existing debt, or to purchase newer equipment.
Equipment leasing provides a company the ability to finance one or multiple assets, depending upon the terms of the lease. Leases typically provide for a period of time in which the equipment is used, and then the lease holder has the option to purchase the asset at the end of the term. Equipment finance companies help businesses manage their equipment finance needs by providing a range of flexible equipment leasing options to meet all of a company’s equipment finance needs. The most common types of equipment finance leasing include long-term leases and short-term leases. Long-term leases provide for a set level of income for a company, while a short-term lease allows a company to quickly make use of its assets when it is necessary.
Any equipment finance transaction involves a detailed lease agreement. The lease agreement details the date that the equipment is to be used, the lessee’s interest in the asset, the payment terms, and other important terms. It is essential that a good lease agreement details the length of the periods covered and the amount of any rental revenue. If a company does not enter into a lease with a buyer that agreeing on the appropriate rent amount, the company could face the risk that the equipment will not be used during the designated periods covered under the lease agreement. In addition, if the buyer does not pay the agreed amount, the lessee has the right to repossess the equipment at the end of the designated periods covered under the lease agreement.