Approaching the purchase of a new car can be both an exciting and a daunting experience. The thrill of considering a new vehicle in which to commute, run errands, and simply let loose on the road of life can bring a lot of positive images and ideas to mind, but the high costs of automobiles means that there are typically financing considerations to be made before a new car or truck can be driven off the lot. A number of options exist for the modern car buyer, whether the object of sale is a new or used vehicle, is associated with a special period or type, or has any number of esoteric attributes when it comes to seeking financing. Frequently, car buyers may choose to work with the sellers themselves or with dealerships to arrive at a workable financing solution, but this is not always the best choice. Consulting with a vehicle finance broker is an excellent way to ensure that the maximum value is obtained with a minimum of hassle and needless expense.Vehicle finance brokers are fairly unique among sources for financing as they work independently, and are not answering to the policies or procedures of parent companies or associations. This often translates to increased value and greater attention to taking care of each client’s individual needs; if you’re concerned about being treated like just another customer in a long line of financing seekers, working with a vehicle finance broker may be an excellent option. The personal service afforded by a vehicle finance broker is matched by such a broker’s ability to reach far beyond the boundaries of other financing sources. Brokers must obtain extensive training to meet local professional requirements, and arrange their deals through making new contacts and arrangements with lenders. This process demands an extraordinary level of skill in negotiation and the ability to identify or create a great deal, attributes which a vehicle finance broker can in turn bestow upon a client.Choosing a vehicle finance broker is a wise move when buying a new car, whether the expense is significant or will only require a short-term commitment. Vehicle finance brokers are extremely knowledgeable about their field, and can help clients understand the particulars of a given arrangement, from the terms of a loan to the specific way in which an arrangement will benefit a client’s tax profile. This personalized and distinctive service is one which can make the car purchasing experience much more pleasant, and can yield quick and efficient progress towards getting a new vehicle out of a lot -and into all the gears of your life. With a professional vehicle finance broker on your side, you can say goodbye to confusing repayment terms, anxiety over scams or bad deals, and generic, cold service. Experience the difference that a dedicated professional can make and consider using a car finance broker for your next car purchase.
Business Capital Solutions In Canada: Accessing Proper Cash Flow & Commercial Financing
Business capital requirements in Canada often boil down to some basic truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.
One of those truths? Knowing the true state of their financial condition and what financing they do and don’t qualify for when it comes to meeting commercial lending requirements in Canadian business.
Business Loans In Canada
Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we’re highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.
1. Understand the true condition of your company finances – These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general
2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing
3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company
Can you honestly answer or feel positive about all those 3 points. If so, pass Go and collect $ 100.00!
A good way to address your company’s finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn – i.e. not growing, losing money, etc; It’s never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!
When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.
How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.
Three basics always emerge when it comes to your search for the right business capital and financing.
1. The amount of financing you need
2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ‘ alternative lenders ‘. These lenders are typically highly specialized in one ‘ niche ‘ of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders
3. How the financing is structured to be manageable with your day to day operations
What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business
Let’s identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:
A/R Financing / Factoring / Confidential Receivable Finance
Inventory finance / floor planning / retail inventory
Working Capital term loans
Unsecured cash flow loans
Merchant working capital loans/advances – these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.
Royalty finance
Asset based non bank business lines of credit
Tax credit financing (SR&ED bridge loans)
Equipment Leasing / Sale leasebacks – Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used, assets.
Govt Guaranteed Small Business Loan program – Government Loans in Canada are sometimes referred to as ‘ SBL’, aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ‘ government ‘ loan solutions are often perfect for financing a new business.
If you’re focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.
Stan has had a successful career with some of the world’s largest and most successful corporations.
His employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) In 2004 Stan founded 7 PARK AVENUE FINANCIAL – He is an expert in Canadian Business Financing.
Debt Consolidation Loans: Home Equity or Unsecured Loan?
According to the Federal Reserve, Americans carry around $5,800 in credit card debt from month to month. Making the minimum monthly payment on that debt would take 30 years to pay off, and include an additional $15,000 in interest. According to the Administrative Office of the Courts, 2,078,415 bankruptcies were filed in 2005–the largest number of bankruptcy petitions in the history of the federal courts. With the new tougher bankruptcy laws, people are looking for alternative ways of managing their debts.Debt consolidation loans are a popular way for people to free up money each month by consolidating several monthly credit card payments into a single lower interest loan. But, the question is whether it’s best to consolidate those debts into a home equity loan or an unsecured debt consolidation loan.Debt Consolidation Home Equity LoansA home equity loan is a one-time lump sum of money you receive in the form of a second mortgage that is secured by the equity in your home. Equity is the difference between how much the home is worth and how much altogether you own on it.A second mortgage loan is usually a fixed interest loan with rates that runs slightly higher than those of a first mortgage loan, unless it’s a 125% Loan To Value (LTV) loan that allows homeowners to borrow beyond the value of their homes. Those rates usually run much higher that other second mortgages and origination fees can be as much as 10% of the loan balance.Home equity loans usually are repaid in a shorter time than first mortgages, with repayment periods typically being between 5 and 20 years. Like a first mortgage, you have to pay off the balance of a home equity loan when you sell your home, so it’s best to find out if there are any prepayment penalties or balloon payments on your loan in case you decide to pay the loan early or sell your house before the loan matures.Benefits and Drawbacks of Home Equity LoansThe main benefit of a debt consolidation home equity loan is that most states allow you to deduct up to 100% of the interest you pay on your taxes. Other benefits include the fact that home equity loans typically have a lower interest rate than unsecured loans, and borrowers can get relatively large amounts of money.While home equity loans have attractive benefits, there are also major drawbacks. One is that if you fail to meet the payment schedule required by the loan, the lender can foreclose on your home and you will lose it even if you go into bankruptcy. Secured loans are not dischargeable by Chapter 7 bankruptcy.Another major drawback is that exploitative lenders target homeowners, especially those with low incomes or poor credit. According to the Federal Trade Commission (FTC), there are many predatory scams, including:· Equity Stripping: The loan is based on the equity in your home, not on your ability to repay it.· Credit Insurance Packing: The lender adds credit insurance to your loan, which you may not need.· Bait and Switch: The lender offers one set of loan terms when you apply, then pressures you into higher charges when you sign to complete the transaction.· Deceptive Loan Servicing: The lender doesn’t provide you with accurate or complete account statements and payoff figures. That makes it nearly impossible for you to determine how much you’ve paid and how much you owe.If you are not sure whether a home equity loan is right for your needs, you may want to consider an unsecured personal debt consolidation loan.Personal Unsecured Debt Consolidation LoanIf your credit is relatively good, and you are employed, you may be able to obtain an unsecured personal loan to pay off some or all of your high-interest credit card debts. With a personal unsecured debt consolidation loan, there is no collateral against the loan. This means that the lender is relying only on your promise to repay the loan according to the loan’s terms and conditions. While the loan amounts are not as much as those of debt consolidation home equity loans, they can amount up to $10,000. Loans up to $1,000 may not even require a credit check.When shopping for a personal unsecured debt consolidation loan, it is important to shop around for the best rates and loan terms. Unsecured debt consolidation loans have lower interest rates than credit cards, but they generally have higher interest rates than secured personal loans like home equity loans. Some loans allow you to take anywhere from one to five years to repay, which can ease financial stress.Benefits and Drawbacks of Personal Unsecured Debt Consolidation Loans
The main benefit of getting an unsecured debt consolidation loan is that if you are forced into bankruptcy, the unsecured debt may be discharged in the bankruptcy proceedings.The main drawback is that you must have good to excellent credit to get an unsecured debt consolidation loan, and the loan amounts are typically less than a home equity loan. The interest rates on unsecured debt consolidation loans are typically much higher than that of a home equity loan, and it is not unusual for a debt consolidator to obtain a commission of 10% or more on your new loan.In ConclusionThe answer to the question of whether you should get a debt consolidation home equity loan or unsecured personal loan all depends on your financial circumstances. If you have relatively good credit, are employed and only a few debts you need to consolidate, you may benefit from getting an unsecured personal loan. However, if your credit is not so good or you have a lot of debts, a home equity loan may your best answer.