Saturday, July 21, 2012

Finance and Lease Warehouse Machinery and Equipment, New and Used, Leasing and Financing Programs Update, Part1

Finance and lease warehouse programs are still accessible for new and used machinery and equipment, however leasing and financing volume for the first part of 2010, was chiefly flat for most United States Industries.

Even though we are going through hard credit times, warehouse machine and equipment financing and leasing is still open for the good credit applicant and as well for the not so good applicant. We are going to discuss the accessible finance and lease programs in general to give you an plan that funds is still accessible for start up and seasoned businesses.

First we are going to begin with the applicant with great credit. That would be an candidate with 680 or higher credit and time in business that exceeds three years. The applicant should not have any previous bankruptcies and should have low debt ratios. This applicant can qualify up to ,000 to ,000 application only programs. In addition, this gives the good credit candidate a good chance to get a great lending rate. If the candidate desires more than ,000 to ,000, they will have to provide more records to qualify. This would include two years prior years business and personal income tax returns and the summary page of your last three months business bank statements.( high average bank balances are looked at favorable) A personal financial statement might be required as well as interim financial statements. A copy of the invoice detailing the acquisition would be necessary. as well

Buyers with personal credit scores between 650 and higher still have a good opportunity to get their desired acquisition. They should have a minimum of three years in business without previous bankruptcies. Low debt to income ratios are also looked at favorable. Furthermore, some institutions still might offer application only programs and anything beyond the minimum application only levels would want the same documentation as above.

With the second tier credit described above, the rates will be a little higher than A Credit with enormous work and warehouse equipment and trucks financing and leasing opportunities on hand.

Applicants with Credit scores between 600-650, there are many warehouse equipment financial programs available without flawless credit. Even though there may be some dings on the applicant's credit, there are still financing and leasing deals out in the banking market. There won't be application only programs but ample ofinstitutionswill look at you. Once again, strong healthy bank balances with time in business with profitable operations showing on your tax return is a big plus Usually, full documentation information is necessary. The front money in these leasing programs can run anywhere from 10-20% where as the first two programs can run as low as the first two payments..
There are other institutions that are not credit driven, but are story book driven. They work with start ups and seasoned businesses without perfect credit. They are more cash driven, and require some additional requirements to qualify. These banks rates are higher than the programs described above but gives the candidate alternatives that might nor be on hand somewhere else..

There are other financial institutions that are not credit driven at all but look at the free and clear assets that are open to the lender. Most banks like machinery, bulldozers, trucks, excavators, etc that have retained a good value. These are cash poor applicants but have good qualified assets that the financial institution will qualify. These financial institutions have their own formula to work out a lending base. One should call to find out the particular details (Copies of free and Clear Titles are required).These finance and lease programs can finance up to ,000,000 or more based upon authorized assets.

In this recession, many banks have had to focus on their repossessed warhouse equipment and warehouse inventories instead of usual business due to cash flow demands, out of balance credit lines with their own financial institutions, and challenging with other lenders for the small supply of buyers in the market place.

In the past better times, there were many application only programs up to 0,000 and 0,000. This meant there were no financial statements, tax returns or bank statements required. Today, there are less application only lending programs obtainable, or the available programs require more information and their rate factors are higher than before. Due to problems in the industry, many institutions have gone back to more conventional lending needs.. .

These lending changes have a remarkable impact on regular business for marginal credit buyers, start up businesses and more mature businesses. One interesting area that has arisen out of this economic downturn is dealer/special financing. With all the repossessions in the market place today, buyers still have a dissimilar business opportunity to acquire a repossession with a credit score as low as 550. Repossessions can be obtained with very little or no money down, sixty months to repay, regardless of age, and more favorable financing terms than conventional lending

Since new business capital is tough to obtain, it is recommended that the start up and seasoned business examine the repo markets. This could be a gratifying in the combination of both price and financing.Bear in mind, there are finance and lease programs that go into the millions for larger applicants, obvious they will require full documentation packages.

If conventional isn't accessible to you for whatever reason, please check out the repossession market and see what deals you may be eligible for.

Happy hunting for your work and warehouse equipment and machinery acquisition and its related leasing.

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