Part-time CFO services | New Versus Used Vehicles?
Business owners have a hard time paying for and getting financing for the vehicles they need in their business says part-time CFO services. Helping business owners find and qualify for financing as well as making great purchasing decisions can help them not only by the equipment needed to further their business, but also can help them keep the cash in their business so they can use it as operating capital and avoid the pitfall of running out of money in their business.
Business owners should always consider financing when making asset purchases because by utilizing financing, they can keep the cash that they do have in their business where they need it. Part-time CFO services says even if a business owner has the cash to pay for an asset, they should always explore financing first. This way they can use debt as a tool to keep the cash flow in their business.
So what can business owners do if they are unable to qualify for conventional financing says part-time CFO service. They can always apply for the Canada small business financing loan, which is much easier to qualify for because the federal government is the guarantor, so bank so more relatable to loan business owners the money when previously the business owners couldnít get financing. This can help entrepreneurs get up to $350,000 to help them by vehicles and equipment for the businesses.
Business owners often think that leasing is a great option for them because often manufacturing companies offer extremely great rates that include 0% financing. Part-time CFO services cautions business owners on the following for this. Often leasing companies and manufacturers disguise they true rate by adding on application fees or financing charges after the fact. If leasing company offers a lower price to buy that asset in cash, chances are that company has just increased the price to hire their financing charge. Business owners can ask them three questions in order to calculate their own rate. They should ask how long is the term, what are the payments, and what would the price be if they paid in cash. By being diligent when considering leasing options, is as owners can make the best choice for them.
Once they have obtained financing, business owners believe that is going to be less of a strain on their cash flow to buy used vehicles and equipment then to buy brand new says part-time CFO service. This is actually not usually the case. Since terms for used vehicles are often much shorter than for new equipment, it is often not in the this ownerís best interest to purchase used, because those higher payments for a shorter term will be difficult. That difficult payments can put the business into a negative cash flow.
Another thing that business owners should take into consideration if they are considering purchasing used vehicles is whether there is going to be an increased cost to operate and maintain that vehicle. Part-time CFO service recommends business owners figuring out how much more expensive it will be to operate in fuel cost and to maintain that asset.
Robert Kiyosaki the author of Rich dad poor dad says good debt is a powerful tool, but bad debt can kill you, remembering this advice is really important says part-time CFO services when businesses are ready to make asset purchases for their company. Business owners who are ready to make purchases need to remember several things to not only maximize their cash flow in their business, but to make it the decision that is going to be beneficial to their bottom line.
One of the big problems that business owners run into when they need to make purchases is that they are unable to qualify for financing says part-time CFO service. They may believe that financing is a great option for them, and even better option than financing because leasing companies often advertise an extremely great rate. Business owners need to be very cautious anytime a leasing company advertises out rate that is lower than baseballís prime because often those lease rates are simply fabricated. They disguise the true price with things like application fees or financing charges. A common tactic used by manufacturing companies in these companies is to advertise their percent financing. If the business owner is able to get a reduced price by paying in cash, they can be assured that the finance charges just added into the price as a lump-sum. Despite these issues, leasing can be a good secondary tool, as long as business owners are smart about it. They should be able to calculate their own risk by asking what their payments are, how long is the term, and if they would save money if they paid in cash.
Instead of leasing, business owners who are unable to get traditional financing can always apply for the Canada small business financing loan, which will give them up to $350,000 in order to buy equipment and vehicles. The reason why this is available to businesses that werenít able to get traditional loans, is because this loan is backed by the federal government. When business owners have been turned down for regular financing, this is an option they should investigate says part-time CFO services.
Once a business owner is ready to make their purchase, they need to make the best purchase for them, and some advice part-time CFO services has for business owners who are buying brand-new, is not to over buy. They should figure out exactly what they need, and then by a reliable and functional vehicle or equipment that is at the beginning of the usage cycle. It may be very tempting especially when buying brand-new by a fancy vehicle with all of the bells and whistles, that business owners need to be cautious, and ensure that their only buying what they need in order to minimize the effect on their bottom line.