Equipment Loans. A guild for business owners

 

Equipment Loans. A guild for business owners

Most times in a small scale or large business timelines, it is absolutely important to upgrade or improve upon by replacing most worn out equipment. This is where equipment loans are a sort of lifeline to any business owner. They can mean the difference between success or failure when it comes to running a small business. But you may wonder what the benefits of equipment loans are and how to get equipment loans? What are the criteria that lenders look for before deciding to approve equipment loans.

WHAT IS EQUIPMENT LOANS?

This are simply loans obtain from financial institutions to purchase equipment. Businesses will often have the need to purchase, replace, repair, or upgrade various kinds of equipment to process, manufacture, or produce their product. Equipment can include such things as medical and dental medical machinery; restaurant ovens, cookware, tables and chairs, linens, and catering supplies; phone systems; computer monitors, printers, copiers; furniture, tools, vehicles (for commercial use), specialized machinery, industrial equipment, and more. All of this equipment is essential for your business to run at maximum efficiency and maximum productivity. But what do you do when your equipment is old, worn, and needs to be replaced? Often you have the choice to either purchase new equipment outright or lease.

Loans or Leases
When considering business equipment loans, know that you can also look into leasing the equipment. Here are some things to consider about leasing versus getting an equipment loan. Kindly consider FLIOMLTD for your equipment loans

Equipment Leasing

Leasing typically does not require a down payment. This is especially beneficial for those businesses with little to no available capital. If a down payment is required, it is typically relatively small compared to what a traditional loan down payment would look like.

With a lease, you can finance around 100% of the cost of the item or items plus around 20 – 25% of the so-called “soft costs.” Soft costs include any taxes or delivery charges.

Leasing gives your small or online business a greater amount of flexibility. You can return the item at the end of the lease or you have the option to purchase it for a small amount once the principal of the loan has been paid in full.

Equipment Loans
Each lender will have different terms, but in general, with a loan, you can finance around 80% of the total purchase price of the item. When choosing to buy your equipment and finance through a loan, you own the item from day one. A down payment of around 20% is generally required for most small business equipment loans. The collateral for the loan is the item or items you purchase with the equipment loan.

· To update older or out of date equipment

· Add to your existing equipment inventory

How to Get Business Equipment Loans

Excellent credit is required for most equipment loans. After all, it’s an investment in your business and in your business’ growth and revenues. You may want to consider applying for a loan at the bank with whom you currently do most of your business. Or you may want to consider a nontraditional lender such as FLIOMLTD an online lender which offers assistance for small and online business owners in need of fast access to capital to grow their business. Business loans offered through FLIOMLTD sometimes referred to as FLIOMLTD is an option. A business loan gives businesses upfront cash in exchange for a percentage or a portion of future credit card sales.

If you have had strong sales, but struggle with little or bad credit, a business loan may be a particularly good option for your small or online business. Getting the capital you need when you need it can mean the difference between the success or failure of your business.

Note: You typically will not qualify for a line of credit for an equipment loan if you have a prior bankruptcy on file, if your business has been in existence for less than one year or if you do not already have the ability to process credit card payments for your customers. Make sure all of these things are in place before you apply to a traditional lender or to a nontraditional lender such as FLIOMLTD.

Traditional lenders, such as banks, are often reluctant to extend traditional equipment loans to small or online businesses with poor or bad credit. Such businesses will be deemed “too risky” and will have great difficulty in securing a traditional bank loan for their business needs. This can be a problem for many small or online business owners who need the capital to purchase, replace or repair outdated or broken equipment. This is where a business loan can come in handy. A business loan gets you the money you need at a fast turnaround time so you can continue to run the day to day operations of your business.

Benefits of Equipment Loans
Quick Approval –Generally, equipment loans are approved (or denied) rather quickly. One way to speed up the process is to consider applying with a nontraditional lender such as FLIOMLTD for your small business line of credit. FLIOMLTD is international loans lender that offers quick funds for multiple purposes including inventory, equipment upgrades and marketing efforts. FLIOMLTD also considers your request within a matter of minutes. That means you can have the additional capital you need faster, so you can purchase or replace the equipment you need.

More Money In Your Pocket – Keep cash-on-hand for other purchases you may need to run your business. Imagine one of your delivery trucks breaks down and needs to be replaced. Or the oven in your restaurant is on the fritz. Rather than spending money from your business revenues to pay for these very high-ticket items, equipment loans can be used to replace or repair this very expensive – and vital – a piece of equipment.

Flexible Payment Schedule –Depending on the lender from whom you secure your business equipment loans, you may be able to take advantage of flexible payment options. This comes in handy as you’re working to replace the equipment, continue running your business and also making payments on your business equipment loans. Some lenders may offer you the option of choosing monthly, seasonal, quarterly, biannual or even annual payments depending on the type of loan you secure. Note: you may also be able to take advantage of a 90-day deferment on repayment of your equipment loan. Again, work with your lender on your equipment loans to find out what works best for your business needs.

Approximately 25% of “Soft Costs” Covered –Soft costs include things such as fees, delivery charges and freight charges. Again, each lender is different, so be sure to do your research to know exactly what charges are applicable to the loan and which charges you will be responsible for covering.

The Steps to Getting an Equipment Loan
As your business grows, you will need to replenish your inventory, provide daily, monthly, and annual maintenance on key equipment, and ensure timely delivery of your product or services. Equipment loans are a vital resource to the small or online business owner.

Have a solid business plan.

Lenders – Traditional bank lenders and some nontraditional lenders – will look to your business plan as a roadmap of your future success. Identify your business. Describe your product or service. Detail your current cash flow system and project an aggressive, yet a realistic set of goals for your future business growth. Identify your target market, the socio and economic demographics of your primary market and then explain in detail how your product or service will fulfill a need within this market. Finally, summarize your entire business plan in a few paragraphs at the very beginning of your plan and call it the “Executive Summary.” This will give lenders a good synopsis of what your business is all about. A good business plan does not have to be pages and pages in length. However, it should be thorough and well thought out. There are many templates and examples of business plans online. Find one that works for you and implement it as part of your strategy to secure your equipment loans.

Make sure you have an updated personal resume.

Even though you’re not applying for a job, a personal resume is a great resource to have when applying for equipment loans. Lenders of all kinds – traditional bank-based as well as nontraditional lenders – look to a personal resume for character traits that will support the small or online business plan. They want to see the person behind the business. And, since you will be responsible for repayment of the loan, lenders will want to make sure you’re a good credit risk for any equipment loans issued.

Have cash flow statements at the ready.

Being able to show your money coming in and your money going out in current terms is a critical factor that most lenders require before issuing any kind of equipment loan. Get your finances in order. Hire a certified public accountant to go through your financial records. You’ll need to make sure you have both your personal and business financial statements in order and bulletproof – meaning the level of integrity in your reporting is accurate and ethical. It is one of the best indicators as to how your business is doing in the real world and it’s one of the main things lenders consider when reviewing small business loan requirements.

Make FUTURE LOANS (IOM) LIMITED your first choice

For more information.

futureloansiom@gmail.com
loans@floans-iomltd.com
Website: https://www.floans-iomltd.com
Phone: +44 077 4168 0089

FINANCING OPTIONS FOR RENEWABLE ENERGY

 

Project finance source for renewable energy

Renewable energy is energy from sources that are naturally replenishing but flow-limited; renewable resources are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time.

Renewable energies are generally spoken of as opposed to fossil fuel energies. The fossil fuels’ stocks are limited and non-renewable in the human timescale. The most known examples of these resources are coal, oil or natural gas. On the contrary, renewable energies are produced from renewable sources. Here, we’re talking about energy coming from solar rays, wind or water cycles – all theoretically unlimited on a human scale time.

For some decades, now, a renewable energy investment has wittiness a continuous and a steady growth in global conglomerations, a more rapid scaling-up is necessary in developing countries to meet climate and sustainable development goals.

Renewable energy projects, especially in developing countries, face multiple challenges from the institutional, policy and regulatory level to the market and project level which can hinder the development and uptake of renewable energy. The latter include lack of market transparency, lack of financing and experience in project development, and lack of relevant information on regulations, markets and resource availability.

This has led to a lack of bankable projects, making it difficult for investors to identify attractive projects, and therefore reducing available capital for those that are ready to be financed.

FINANCING OPTIONS FOR RENEWABLE ENERGY

The major sources of debt financing are international and national commercial banks. Other sources of debt financing include multilateral development banks (MDBs) and the International Finance Corporation (IFC), debt/equity investment funds, equipment suppliers, and private investors. However, FUTURE LOANS (IOM) LIMITED remains the best option for renewable energy funding. Targeting specifically project-level barriers, FUTURE LOANS (IOM) LIMITED is aimed to create a pipeline of investment mature projects by actively supporting early stage project development and bridging the funding gap by assisting project developers access appropriate funding opportunities.

HOW RENEWABLE ENERGY PROJECTS FINANCED

Currently the majority of renewable energy projects are financed through the syndicated commercial loan market. Syndicated loans are loans in which a group of banks each take a portion of a larger loan and thus minimize the risk that any one individual lender making the same loan would otherwise have.

TYPES OF RENEWABLE ENERGY:

SOLAR ENERGY:

Solar power is energy from the sun that is converted into thermal or electrical energy. Solar energy is the cleanest and most abundant renewable energy source available, and the U.S. has some of the richest solar resources in the world. FUTURE LOANS (IOM) LIMITED can help you get funding for all your solar energy at affordable 3% interest rate annually.

Wind energy (or wind power) refers to the process of creating electricity using the wind, or air flows that occur naturally in the earth’s atmosphere. Modern wind turbines are used to capture kinetic energy from the wind and generate electricity. This type of power has help companies especially in the region of Africa as a source of power where electrical source has failed. FUTURE LOANS (IOM) LIMITED is still in the business of financing such project.

Hydropower uses a fuel—water—that is not reduced or used up in the process. Because the water cycle is an endless, constantly recharging system, hydropower is considered a renewable energy. When flowing water is captured and turned into electricity, it is called hydroelectric power or hydropower.

Biomass energy is energy generated or produced by living or once-living organisms. The most common biomass materials used for energy are plants, such as corn and soy, above. The energy from these organisms can be burned to create heat or converted into electricity.

Biofuels are a renewable energy source, made from organic matter or wastes that can play a valuable role in reducing carbon dioxide emissions. Biofuels are one of the largest sources of renewable energy in use today. In the transport sector, they are blended with existing fuels such as gasoline and diesel.

Geothermal energy is the heat that comes from the sub-surface of the earth. It is contained in the rocks and fluids beneath the earth’s crust and can be found as far down to the earth’s hot molten rock, magma.

See how we can help you finance your renewable energy projects at affordable interests.

For more details, see below.

futureloansiom@gmail.com

loans@floans-iomltd.com

Website: https://www.floans-iomltd.com

Phone: +44 077 4168 0089

Concept of Project Financing and its source

 

Project financing is a concept of obtaining funds from merely private lenders for industrial projects, long-term infrastructure, and public services. Many businesses use this funding method to take care of major projects using a non-recourse or limited financial structure. There are several ways to secure project finance, such as investor, loans, private finance, equity, funds, grants, etc. The repayment is managed from the cash-flow generated off the project.

It is a secured form of lending, accepting the project’s rights, assets, and interests as collateral. Project loans are useful in more than one way. It can help expand the manufacturing capacity, rent a workstation, upgrade technology, handle unexpected expenses, experimentation for a new service or a product, create a cash pool, etc.

Below, we have discussed different sources from where one can obtain project financing.

1. Angels Investors

Business Angels have a vast experience in the industry they operate in. Private investors may invest in a company for a capital gain. The investment is for a place on board or an equity stake. This been said, FUTURE LOANS (IOM) LIMITED provides an Advise-Given service to high net worth private/Angel investors. That is our main source of financing and loans.

2. Venture Capital

Venture capitalists invest in a project for a non-executive position on the board. They provide capital in exchange of an equity share or a position at a strategic level. Once the value of shares increase, they may sell those for a profit.

3. Loan for Business

Apart from secured lending, a company can choose unsecured business loan that comes for a fixed tenure with a repayment plan. The cost of loan is determined by estimating the returns from the project. The interest payment is tax deductible in some cases. An agreement is made between the financial institution and the borrower for a specific loan amount and tenure.

4. Overdrafts

Overdrafts are ideal for a short-term finance. The period of overdraft facility is for a year or less. The interest is only charged on the amount spent from the person’s account. Such financing can be arranged quickly like business loans.

5. Share Capital

The shareholders get profits from dividend. This share of profit is derived from ordinary shares (owned by business owners who can share profits of an organization from dividends) or preference shares (does not belong to company owners but a third-party). Capital gain is expected from selling the shares in future. It is the company shareholders who raise the Share Capital.

6. Debentures

Debenture loans come with a fixed or a floating rate and provided against an organization’s assets. The debenture holders receive payment of interest before the shareholders receive their dividend payment. If the business fails, then these holders are liable as preferential creditors.

A project loan offers a great opportunity to fund-providers and investors to be a part of the company’s growth process and share its profits. The above-mentioned sources for project financing are crucial for new companies. Apart from these sources, a few others to mention are project grants and government funding.

For more information.

futureloansiom@gmail.com
loans@floans-iomltd.com
Website: https://www.floans-iomltd.com

deeper Insights About Bridge Loans

 

FLEXIBLE FINANCING: BRIDGE LOANS

Should you be interested to purchase a property for $200,000,000? A quarter of that will come from equity sources including friends, family, business partners, real estate investors or crowd funding and your own vested interest in the property. In that case, what about the other 75%? There are so many different financing options that it may be tough to determine which makes the most sense. Bridge debt may be a viable option depending on your situation and your choice of private lender.

With FUTURE LOANS (IOM) LIMITED, your are simply covered.

WHAT IS BRIDGE DEBT FINANCING?

With different school of thought about the subject matter, a bridge loan is defined as a “short-term loan that is used until a person or company secures permanent financing or removes an existing obligation.” This type of financing is secured by the real estate asset, usually requires cash flowing assets and the loans tend to be floating rate and may have a higher interest rate than comparable permanent debt. The loan is characterized by shorter term and may include structuring or future funding to facilitate the costs of repositioning of the property.

HOW IS BRIDGE DEBT USED IN REAL ESTATE?

For real estate, bridge loans may be used for a variety of reasons which could include purchasing a property under a tight closing timeline, renovating and selling a property over a shorter time period (such as a quick fix and flip), or retrieving properties from foreclosure. Other uses for real estate bridge loans could include finding a new tenant, stabilizing the cash flow of the property, or resolving a short term issue affecting the property (such as environmental issues) or the creditworthiness of the borrower that would prevent the borrower from obtaining permanent debt on the property. Bridge loans typically have terms between 2-3 years and are paid back upon the property being sold or refinanced.

MERITS OF BRIDGE FINANCING

The main benefit of bridge debt financing is flexibility. It provides borrowers with short term capital that allows them to meet any current expense obligations, quickly close on properties, complete renovations, or allow the Borrower to find new tenants for the building.

Additionally, most bridge loans are non-recourse, which means the Lender can only seek repayment of the loan through the property itself. The Borrower personally has no financial responsibility to pay back the loan and the Lender cannot seek compensation even if the value of the property does not cover the remaining loan balance. Given the current state of the real estate industry, it can be a very attractive form of financing.

Demerits OF BRIDGE FINANCING

The biggest disadvantage of using bridge financing is also what makes it the most appealing. With flexibility comes a steeper price tag as interest rates will be higher on bridge loans than permanent financing from a traditional lender. Coupled with shorter loan terms, the payments are typically higher than permanent financing. Additionally, because of the short term nature of the loan, lenders will typically be less flexible when it comes to late payments by charging larger fees and penalties.

In addition to being more costly, the short term nature of bridge loans relies on take-out financing, i.e. permanent debt or the property being sold, which the availability in the market place is not always guaranteed. During the recent financial crisis, capital in the market dried up and it made it harder for Borrowers to get take-out financing. This led to delays in conversion to permanent debt, lowered anticipated returns and in extreme instances resulted in defaults.

LESSONS

Bridge debt is a flexible financing option that gives borrowers access to money to cover short-term expenses or to take advantage of a short term opportunity. Although there are some disadvantages to using bridge debt, there are considerable advantages and depending on your situation, may be the perfect fit to execute your business plan.

See how FUTURE LOANS (IOM) LIMITED can help you finance Bridge loans and other related programs at affordable interest rate.

futureloansiom@gmail.com

loans@floans-iomltd.com

Website: https://www.floans-iomltd.com

Phone: +44 077 4168 0089

BRIDGE LOANS & financing Descriptions

 

BRIDGE LOANS Descriptions

 

A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively higher interest rates and are usually backed by some form of collateral such as real estate or inventory. Here, FUTURE LOANS (IOM) LIMITED may consider a written payment guarantee against collateral. This is why we remain the best in the lending/financial industry.

In other developments, Bridge loan can be seen as type of gap financing arrangement wherein the borrower can get access to short-term loans for meeting short-term liquidity requirements.

Description: Bridge loans help in bridging the gap between short-term cash requirements and long-term loans. These loans are normally extended for a period of 12 months. These loans are provided at exorbitant rate of interest and are normally backed by an asset collateral like equity, debentures etc.

The Efficacy of Bridge Loan

Also known as interim financing, gap financing, or swing loans, Bridge Loans Bridge the gap during times when financing is needed but not yet available. Both corporations and individuals use bridge loans and lenders can customize these loans for many different situations.

Bridge loans can help homeowners purchase a new home while they wait for their current home to sell. Borrowers use the equity in their current home for the down payment on the purchase of a new home. This happens while they wait for their current home to sell. This gives the homeowner some extra time and, therefore, some peace of mind while they wait.

Facts remains, that Bridge loans provide immediate cash flow, but come with high interest rates and usually require collateral.

Bridge Loans and Businesses

Businesses turn to bridge loans when they are waiting for long-term financing and need money to cover expenses in the interim. For example, imagine a company is doing a round of equity financing know-How expected to close in six months or thereabout. It may opt to use a bridge loan to provide working capital to cover its payroll, rent, utilities, inventory costs, and other expenses until the round of funding goes through.

Bridge Loans financing in Real Estate Business

Bridge loan is also an integral Part in real estate financing/industry. If a buyer has a lag between the purchase of one property and the sale of another property, they may turn to a bridge loan. Typically, lenders only offer real estate bridge loans to borrowers with excellent credit ratings and low debt-to-income ratio. Bridge loans roll the mortgages of two houses together, giving the buyer flexibility as they wait for their old house to sell. However, in most cases, lenders only offer real estate bridge loans worth 80% of the combined value of the two properties, meaning the borrower must have significant home equity in the original property or ample cash savings on hand.

Bridge Loans Against Traditional Loans

Bridge loans typically have a faster application, approval, and funding process than traditional loans. However, in exchange for the convenience, these loans tend to have relatively short terms, high interest rates, and large origination fees. Generally, borrowers accept these terms because they require fast, convenient access to funds. They are willing to pay high interest rates because they know the loan is short-term and plan to pay it off with low-interest, long-term financing quickly. Additionally, most bridge loans do not have repayment penalties.

See how FUTURE LOANS (IOM) LIMITED can help you finance Bridge loans and other related programs at affordable interest rate.

 

futureloansiom@gmail.com

loans@floans-iomltd.com

Website: https://www.floans-iomltd.com

Phone: +44 077 4168 0089