Business Financing and the Credit Crunch

The credit crunch has hit some small businesses very hard and with banks not lending many are at a loss of where to get needed funds. Don’t fret there are money sources beyond banks even if you rarely hear of them. Which source is best for any particular business depends on why the money is needed.

If the business is looking to buy equipment it is often best to try to get the equipment dealer or manufacturer to finance the purchase. Not all companies have this option in place but always ask because it can often be much cheaper than borrowing from another source.

Credit cards can be another option. However before you run out and charge a “high ticket” item (like a piece of equipment) you will want to call around and get the best locked in interest rate you can find. Yes, I am telling you to shop for credit cards. I know that may seem a little crazy but calling that 800 number on the back of your cards and haggling to get a lower rate can save you hundreds of dollars in interest. Play one card against the others and make sure the rate you are quoted is locked in for a long period of time. A low initial interest rate is not what you are looking for you want at least 12 months guaranteed at the rate you are given.

Private lenders are another possibility. Private lenders are not to be compared with loan sharks. These individuals have money they are willing to lend to others at a higher interest rate than they can get putting the money into the bank. They are willing to accept a bit more risk in order to get a higher rate of return.

If you need money and have a good reason for needing it, there is always a way to get funds.

Small Business Finance And Small Business Loans

Starting up and running a small business is not something that can be decided on a limb. It takes time to properly draft an effective and practical plan that covers many of the fundamentals such as start-up costs, proposals, and financial exit strategies. However once that is accomplished, the benefits completely outweigh the disadvantages of taking that extra time. The beauty of having a plan is that it can change at any point in time. This is especially important for owners because things change at different points in time particularly where business financing is concerned. One question that comes up very often with small business finance is that of when to start getting a little help from the bank. Here is some general advice on when to consider a loan.

-You Are Increasing

You opened with your product or your service and now you need to buy equipment in order to cope with the demand. You started off and your customer base has grown to the point where you are looking at expanding your building. When you are taking out a loan to help pave the way for greater opportunities, you are making the right decision. Not just because you’re setting yourself up to make more money, but because you’re most likely going to be able to pay it back. This requires a bit of forecasting, but it is certainly more than possible to put together a reasonable strategy.

-Relocating

You’ve outgrown your old building, the income and customers are still steady but its cheaper to just move to a new building, you want to add an extra store. Whatever the reason for changing buildings, the key is that it is because you are growing. If you need a loan to put a down payment down on the new building or something to that effect, it is a good idea for you to at least begin to consider small business loans.

-Upfront Costs Are Required

This does not mean upfront costs in the sense of monthly rent or daily operations- you should never take out a loan for those reasons. However if you are looking at serious renovations or at upgrading your current equipment there are often upfront costs that you may not be able to afford all at once. As long as you are careful with your accounting and you have some idea of what your finances are going to be looking like for the duration of the loan, consult with your financial advisers but don’t hesitate to get a loan if the opportunity is there and the reasoning is sound.

Taking out a loan is a decision that is never taken lightly when it is just individuals involved, but when you are considering small business loans there are good and bad reasons for going through with it. If you are planning to use the money to cover bills and the like, there are more serious problems that need to be addressed. However if you are looking for ways to manage small business finance through loans, some good reasons are if your company is increasing, you are relocating, or if there are upfront costs that will need to be covered. The key is to make sure that you take the money because things are going well. That way you can rest assured that the money will be paid back to the bank.

Getting RV Finance and Insurance

Owning a recreational vehicle is not as expensive or complicated as one might think. With various options for RV financing available today may allow you to buy more RV for your budget than paying cash.

The most vital point that needs to be considered while financing an RV is your credit score. Despite the fact that RVs are in demand and an increasing number of people are making it their primary residence, it is still regarded as a luxury item, making it hard to obtain credit lines for it. Basically you should have a decent credit history, fill out all the paper work honestly and accurately and you will be able to obtain the finance you want.

Interest may sometimes tend to be high while financing an RV, so don’t tear your hair apart looking for low rates. Getting a payment that is affordable and reasonable to your budget will be important to getting a recreational vehicle of your dreams. It will hardly benefit you to have lower rate with a sky-high payment every month.

It is advisable that you shop around and conduct some research before you finance your RV as it will help you keep within your budget. Look closely at all the amenities and the actual value of the coach you are planning to buy. Buying a motorhome is a huge deal, almost like a home and an automobile combined into one and thus should be handled even more carefully when it comes down to numbers.

Most people have a misconception that an RV financing needs a big down payment. With several lenders now offering loans on RVs, there are different loans with different terms. While smaller loans can be financed for 10-15 years, larger loans can be extended up to 20 years. Some banks and finance companies may charge a higher interest rate for a smaller loan simply because a larger loan can be spread out over a much longer time period generating more income for the bank. There are several institutions that will do zero-down loans on RV’s. Again, research is important in deciding what is best for you and your budget.

Another point to consider when financing an RV is tax implication. Depending on your individual tax situation, your interest may be deductible. Check with your tax consultant for a more informed decision.

As far as insurance schemes on your RV are concerned, you do not necessarily want least insurance at the lowest price, rather get the maximum coverage for the best price.

Collision coverage is a must for an RV, but it is important to know what kind of collision coverage is being offered. You could be covered for total destruction, partial damage or replacement. If you don’t have a policy that provides for that particular damage, you may wind up receiving a much smaller settlement than you need. Your premium may be more if you get total replacement coverage, but it may be worth having anyway.

Another important insurance scheme that RV owners should consider is personal liability covering not only a personal injury claim resulting from a road accident, but also one that may happen while you are parked in a campground. Most RV insurance policies have the former, but many lack the latter kind of insurance. Ensure the damages that the insurance policy covers before signing for it. There are some special policies for full time owners and cover contingencies usually taken care of by one’s home owner policy.

The personal property damage coverage in an RV insurance policy is quite negligible and may not cover all valuables if a major accident happens to occur. So if you are carrying numerous expensive things on our RV as you travel, you may need to increase your personal property insurance coverage to an amount that will replace them if they were destroyed. Also if you are a full time RV owner and do not have the benefit of a homeowner’s policy to fall back on, you will need to get a good property damage rider on your insurance policy.

There are several schemes for RV financing which will help you to get an affordable recreational vehicle Researching different financial institutes as well as the RV’s themselves are key to getting you the best deal. Many insurance companies also offer discounts; it never hurts to get quality coverage at low prices.