Documenting Credit Inquiries

Hi,
When a small business owner or individual shops for financing, these are some important points to consider for every phone call to financial institutions:
1) Write down the full name, phone number and extension of the individual with whom you communicated.
2) Write down everything related to the particular financing that is being inquired about.
3) If applicable, inquire about the cost of insurance and service agreements.
4) If the purchase is subject to warranty, write down the specifics of the warranty. This will allow you to compare warranties among financial institutions and/or manufacturers.
5) Request that the individual email you a copy of your conversation.
By writing down all communication with financial entities, it will enable a more expeditious and prudent decision to be made. It will eliminate the unscrupulous salesperson, who does not disclose the full terms and conditions of various financial instruments until the customer is ready to close the document, to railroad you into signing for financing you don't feel comfortable about.
It is a good idea at the close of all conversations to reiterate what has been written down in order to prevent future misunderstandings.
Tomorrow I'm going to write about documenting collection calls.
Until then,
Alan

Equipment Leases

Hi,
Equipment leases are available in a multitude of places ranging from commercial leasing companies, private leasing companies and many equipment manufacturers. The cost of leases varies considerably from one place to the next. In determining the lease best suited for your business consider the following:
1) Determine the term of the lease before calling leasing companies.
2) Have a general idea of the amount of monthly payments the business can afford before calling leasing companies.
3) Ask if first, last and security payments are required with lease inquired about.
4) If the equipment being leased depreciates very quickly, and has a high residual value at the end of the lease, do not use it as a factor to determine whether or not that particular lease is suited for the business needs.
5) Ambitious lease salespeople often have very creative payment streams on leases to entice prospective customers to sign the lease. It is important to get full disclosure on any lease to make sure there are no hidden surprises down the road.
6) If the equipment being leased is for a highly speculative business such as a restaurant, inquiring about whether or not the lease is assumable is not a bad idea.
7) The cost of insurance is a consideration when determining the cost of leasing and needs to be factored into the decision.
8) Before signing the lease, determine who is responsible for servicing equipment.
Leasing is ideal for businesses that have to worry about cash flow. Lease rates are generally figured at a cost per thousand dollars rather than a specific interest rate.
Tomorrow I'm going to write about shopping for loans to purchase equipment.
Until then,
Alan

Rentals: How To Shop For the Right Financing-

Hi,
Once a business owner has determined what method of financing he or she needs for a purchase IE., to rent, lease or buy, there are many factors to consider:
Rentals:
1) First determine if it's a short term rental or a long term rental.
2) Many equipment suppliers have both short and long term rental agreements available in house. For example, if an equipment supplier has a piece of equipment returned, and is unable to quickly sell it, many times it will be made available on a short or long term rental basis. Also, inquire about their price breaks as determined by rental periods.
3) Check with all local equipment rental companies to obtain quotes for the piece of required equipment.
4) It is worthwhile to check equipment rentals within a 100 mile radius, as sometimes the rental prices are lower in small towns and rural areas.
5) Decide whether it's the type of equipment, or brand which is important, as it may be worthwhile to check with various competitors to see what types of rental programs are offered.
6)Inquire about the insurance requirements with each obtained quote, as they can vary dramatically from company to company. In some cases, the business owner's insurance company will cover the insurance on rental equipment.
When obtaining rental quotes, be consistent in your request to each supplier, so that you are comparing apples to apples.
Tomorrow I'll write about leasing.
Until then,
Alan