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Congratulations!
To
help make the process easier to get you the financing you
need to grow your business, here’s some basic tips
/guidelines to help you get better established…
You are a business if you are a Sole
Proprietorship; however, if you have several, unrelated
owners, a partnership or LLC may be better suited to your
needs. Check with a local tax accountant for more specific
suggestions.
File your business name with the appropriate
city, county and/or state agency
Open a checking account under this established
business name [lenders would prefer to see a 3 month
average balance {can be combo of personal accounts at this
stage} of about 20% of the amount you want to borrow. (i.e.
$20,000.00 for equipment, $4,000.00 in the bank.)] Lenders
want to see enough funds flowing through the account to pay
them back [cash flow to service the debt]
Go to
www.superpages.com and list your phone number you’ll be
using for your business (cell, personal land-line) under
your business name – this is FREE. Lenders will use this
site to confirm your business name and business phone
number.
Go to
www.dnb.com and get your business name listed.
This is FREE. D&B will; however, contact you, and quickly I
might add, to ‘encourage’ you to spend as much as $3-400.00
to get a ‘full report’ made for your company. Until you’re
a few months old you probably don’t need this. Keep it in
mind, though, as your business grows because lenders will
look at this report to determine 1) time in business, 2)
paydex score, you want it 65 or higher [this relates to how
well you pay your suppliers]. The report will also,
eventually, list any liens against the company including
equipment financing (UCC’s) bankruptcy, judgments,
mechanics, state and federal tax liens.
And of course, check with your local city,
county, state and federal agencies to secure any necessary
permits, licenses, exemptions, etc. to make yours a ‘legal’
business. Unlikely these would be a requirement for
financing approval, but, just good business sense.
Contact me if you have any questions
with regards to this information or have other concerns not
addressed here.
Always check with your local legal
or tax advisor before implementing any new business plans.
This information is not meant to replace or override their
professional advice.
APPLICATION ONLY UP TO $150,000!!
EQUIPMENT LEASING – Changes in the tax law have compelled
companies to consider leasing for their equipment purchases.
The loss of investment tax credits has eliminated much of
the incentive for ownership. When acquiring equipment,
consider this general rule: “If it appreciates, buy it! If
it depreciates, lease it! – John Paul Getty III. Eight out
of ten American Businesses use leasing to obtain some or all
of their equipment needs.
LEASING PROGRAMS
** Finance Lease $1.00 purchase option is the same as a
finance contract but with a minimum down payment.
** True or Tax Lease – is an operating lease that is 100%
tax deductible.
** TRAC Leases – available on trucks and trailers.
** Consolidation Financing, Refinancing or Sale Lease-Back.
** Master Lease – same as a line of credit. Municipal
Leasing also available.
** Commercial Mortgages and Asset Based lending specialists.
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