Automobile Equipment Financing and Business Cash Advance

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For this update, automobile equipment financing can come in the form of business loans and businesses seeking working capital in the structure of a cash merchant advance and/or merchant cash loan. Todays financing market is very illiquid in presenting automobile equipment leasing/financing. Most lender monies are better off served in other industries from a risk/reward factor. However, there are niche lenders out there that will think about auto equipment financing but usually require the applicant to have at least a minimum of one to two years time in business. For the most part startups don’t have a probability unless their personal credit score are over 700 and are eager to pledge additional collateral to the agreement with additional clear and free assets. The lenders that finance auto equipment financing will properly offer up to $50,000 application only and over that amount full financial and tax disclosure would be required … Permitted leases can run between 24-60 months with various buyout clauses…

The following is the type of automobile stores and equipment under deliberation:that the dealer can get financed for its customers or get financed for himself as long as he uses this equipment for his own business

Auto & Repair shops selling such items as, hydrolic pumps, wheel alignment equipment, brake equipment, brake lathe, tire changer equipment, digital pipe bender, engine analyzers, frame rack, auto parts washer, aligment machine

The most unique part of this commentary is the merchant cash advance/loan programs. For the most part dealers/vendors aren’t even attentive of these programs….

The initial question a lot of people are asking is what is a merchant cash advance? An established business in existence for one year or more with visa and mastercard sales can qualfiy for a loan or a merchant cash advance on their past activity up to $150,000 from a financial institution and $750,000 or more per location from a true merchant cash advance company. The monthly average of their visa and mastercard sales x 1.5 will be a qualifying amount that the financial institution will finance up to. A number of cash merchant advance companies will finance up to $750,000 per location.

This is a notable way for a business to get hold of working capital. Most conventional banks shy away from the automobile equipment industry.

These cash merchant advances/loans are great for the dealer/vendor that have seasonal cash flow needs, that aren’t capitalized correctly and require more time to achieve their sales base, have credit issues that can’t be overcome at the bank, businesses that require instant cash at this time, and obviously many other factors tailored to specific businesses.

These lenders aren’t FICO driven and are attracted in the dealers/vendors past Visa/ Mastercard Sales for the previous six months. Usually the company’s bank statements, the merchant processing statements and a signed application are required to commence the lending process. Once the lenderhas received these requirements, a decision can be made fairly quickly, usually within 24-48 hours. Beyond an acceptance, the money is usually funded within seven business days.

The next obvious question, is how does the customer repay back the loan or cash merchant advance? It is from the future card sales, a little portion is paid back each day to pay back the bank This is critical because there are no balloon payments or monthly payments to consider. The lendercalculates a small repayment per day that can last up to one year.

Finding available capital whether through leasing and working capital can be very intricate in todays times. The cash merchant advances/loans can offer the seasoned business an exceptional chance to get hold of funds without all the red tape conventional banks require..

Happy hunting for your auto equipment financing for your customers or yourself. In addition, business cash merchant advances are also available to the dealers/vendors for working capital needs..

Article Source: http://depositarticles.com/

J.M Luna has over thirty years experience in the financial field. This includes accounting and taxes, leasing, hard asset money and commercial lending. U.S Corporate Capital Leasing assists the start up and seasoned business for financing in all different industries. www.cclgequipmentleasing.com/lease_equipment.htm www.cclgequipmentleasing.com/cashadvances.htm

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