Computer Financing

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Supplier or Vendor Financing

Traditionally, supplier financing involves stretching out payables from “paid-upon–receipt” or “net 30” days to 60 to 90 days. Some businesses may refrain from sending timely payments to those suppliers or other vendors who don’t call or send frequent reminders or assess interest penalties for nonpayment. (An example of the squeaky wheel gets the grease.) Typically, however, unless agreed upon in advance, suppliers tend to balk when the terms are extended past 30 days. If your supplier is also a small business, your slow payments could cause cash flow problems and thus, financial difficulty for the supplier, especially if you are a major customer of that supplier.

If the supplier is relatively large and has good credit, you can often obtain extended payment terms. The best time to have this discussion is in advance of the purchase or shortly after the purchase but long before payment is due when buying on a regular schedule. If you have been unable to obtain a bank loan, other loan, or other financing, supplier financing can help. If suppliers or other vendors comprise the bulk of your payables, then supplier financing may be just what you need to access liquid working capital for your business

If you have been a good customer or have the likelihood of becoming a larger customer, the supplier may even be willing to provide you with a short or medium term loan secured by the inventory or equipment the supplier provides you. The best way to make this happen is to appeal to the supplier’s business sense and stress the highly positive impact your growth will have on the supplier. I.e., If you are a painting contractor and you purchase a minimum of $10,000 in paint a month, stress how you contribute $120,000 in revenue to the paint store’s annual. State how the only thing holding you back is your ability to fund purchases when your company gets paid ~60 days after work is completed. If you could finance the $10,000 per month purchase, you could potentially grow the business to require paint purchases of $12,000 - $15,000 per month, an increase of 20-50% from you.

Note how the painting contractor’s working capital is affected if he is able to pay for the paint AFTER he receives payment for the completed job. Instead of having to come up with $20,000 in cash in ADVANCE to cover paint over the two month period until he’s paid, he’s able to keep that cash in his bank account. Bonding entities like to see higher liquidity. General contractors also look at liquid working capital when subcontractors apply for their respective preferred vendor programs. Finally, this relationship helps build business credit. If the supplier does not report to Dun and Bradstreet, request a Letter of Payment History from the supplier and submit it to Dun and Bradstreet to add to your business’ credit file.

You may also induce your key supplier to provide you with a term loan of one to three years to finance the purchase of another business or its assets, working capital, or expansion capital if you are growing quickly. To secure longer terms, offer to make the supplier the sole or majority supplier of that product for a designated period of time, at least the length of the loan requested. The supplier knows the security for the loan – your inventory or supplies, his products – well and, therefore, will value the inventory much higher than a bank. (Unless a third party appraisal is performed that provides different numbers, banks generally value inventory at 50%. Suppliers may loan up to 95% of the inventory’s value.)

One caveat: Large national firms often lack the flexibility to negotiate. However, sometimes these large companies contract or sub-contract with smaller firms who do have flexibility. If this applies to your supplier or vendor, find the contractor and negotiate directly with him or her by offering to re-route your business with the large firm through the contractor.

If you believe you can obtain a loan for a larger amount from the vendor than that secured wholly by inventory or supplies, by all means pursue it. In that case, you may not even wish to pursue a bank loan as you may be able to negotiate more flexible terms and interest rates with your supplier than your bank. You may need to offer additional collateral such as a mortgage on the other business assets and a personal guarantee. Since such a loan would likely supplant a bank loan, the collateral would appear more like that required by banks. Negotiate the terms yourself if you are knowledgeable. Otherwise, use your CFO or accountant and your attorney to finalize the terms.

In summary :
Use supplier or vendor financing when your business relies (or could rely) heavily on one to three vendors or suppliers to provide a substantial amount of goods thus creating a significant, measurable revenue and profit impact on the supplier(s) from your business. If your supplier will benefit tremendously from your expansion, i.e., her sales and/or profit will increase in direct proportion to your increase in sales, approach your supplier for a loan. When your supplier is small enough that you can negotiate directly with the owner, president, or general manager of the firm, do so. At the very least, request extended payment terms. Even larger firms often extend longer terms to their better customers – however, usually only when explicitly asked.

Who to approach?
Unlike retail outlets or distribution companies, most construction-related firms do not hold much in salable inventory. Specialty contractors do stock supplies to deliver services: painting contractors keep paint; concrete specialists have concrete or cement; drywall contractors keep drywall; etc. However, even these companies stock a lot of working supplies. Therefore, many of the companies to approach will be vendors of small supplies. If you could benefit from additional financing, approach any supplier or vendor who stands to reap substantial benefits and possesses the financial wherewithal to provide the loan. If you are not sure, ask. The worst response you’ll get is “No”. If you do not ask, you’ll never know what could have been.

For additional assistance, read the trade journals, industry news, books, and other applicable media to determine what the financing norms are for your industry. Use the norms as a guide only. Your supplier’s confidence in you, your negotiating skills, your ability to build trust and belief in you, and your account’s present and future value are what will ultimately determine your ability to tap into supplier financing.

Military Computer Financing

Military computer financing is a website that is dedicated to the military personnel to get a military computer loan that enables them to buy a computer. Whoever is in the military can use this website to get a military computer loan which can be used to buy a computer.

A military computer sale for any person in the military is what that is offered by this website. Even person in the military who is bankrupt can avail of the military computer loan to buy computer and other electronic devices that are listed in this website. Military personnel with bad credit or even no credit can also avail of this loan to buy their electronic gadgets.

Who can get benefited by militarycomputerfinancing.com?

Active duty personnel and the retired personnel in the military can avail of the benefits of this military computer loans. Apart from them their spouses, civil service workers, and personnel in the department of defense, air force, marine, and the navy can avail of these military computer financing options in the website.

If you are a person who is in the military or who has served in any department of the military then you can confidently apply for a military computer loan. You won’t get disappointed with the result. A definite approval of your loan is on the anvil.

Categories of products available for purchase

There are many categories of products that might be of interest to you. You can pinpoint a product easily if you know the category of the product. This enables you to get to the product easily.

Some of the categories of the products that are available in militarycomputerfinancing.com are Game systems, Laptops, Desktops, Televisions, DVD players, VCRs’, Cameras, Home Theaters, Washers and Dryers, MP3 players, and Refrigerators. You can have to visit this website to know the available categories and how easy it is to locate a product of your interest.

Featured products

The home page of the website provides a list of products that come under the category of featured products. The latest available offers are also displayed in this category. These featured products are usually the ones that would get the most value for the money spent in buying a product. Always check out the featured products to find out if the product you like is listed there and then move on to the other sections.

Online application

To make the process of applying for the loan easier this website has an interface that enables you to apply for a military computer financing option online. All you need to have is a computer that is connected to the internet to use this feature. No hassles.

You can even use an Internet café to use the online application for the loan. Women and Men in the armed forces can use this facility to apply for a loan online. It is a convenient way of applying for a computer loan.

Why not try this option if you have access to Internet? They guarantee an approval within 24 hours of applying for a particular loan. A simple interface is there for applying for a loan. There is also an option to refer your friends who are in service in the military. For each of the friend referred by you, you also get a discount of $10. You can avail a maximum of $50 discount by this referral. Why not use this?

Financing Your Computer Is Not A Trouble Anymore

Computer is becoming the most vital part of our life in today’s fast growing world. It lets you connect the world at the click of a mouse. Computer financing loans will provide you the financial support you are looking for a computer.

Computers are required everywhere whether it is a home or your workplace. Even there is huge demand of computers in school to give your children a better platform to learn new things. Popularity of computers has been growing day by day and already had been more popular than television.

Computer finance is a loan for buying computers. Computer finance came out with an idea of enabling everybody to own a computer. You can also use the Computer finance for upgrading of your existing computer by adding new hardware devices printer, scanner, improving the storage capacity or the memory.

Computer finance comes under personal loans in terms of conditions attached to them. The benefit which the borrower gets in case of computer finance is that the loan amount spread over a long period of repayment. As in case of purchasing computer you have to pay the whole amount immediately which can be burdensome for you. The installments wouldn’t affect your budget to that extent.

When the computer is purchased through a computer loans, it is the lender who makes the payment directly to the computer dealer. Afterwards the borrower makes the repayment in small monthly installments. There various methods for repayment, you can pay through monthly installments or there is an option of balloon payments.

A balloon payment means a large, lump-sum payment scheduled at the end of a series of considerably smaller periodic payments. This method of repayment is beneficial for those who are hoping to have a sizable sum on the near future. So they can pay computer finance amount from that sum.

The interest rate on these loans ranges from 7.25% to 15%. This rate generally depends on the amount of loan taken and the credit status of the borrower. A good credit history is preferable to get a larger amount for computer loans at cheap rates. However, a borrower with bad credit history can also apply for these loans as there are lenders who can arrange a good deal for you at certain charge.

It is considered as a better option to apply for these loans online. This will save your time as you don’t have to visit different lender’s offices for their quotes. With dozens of websites offering you the platform where you can compare quotes of different lenders. This will help you to choose the best computer finance package which would suit your needs perfectly. You just have to log on to the lenders website and fill up the required details to get the service from the lender.

Computer finance will help you achieve your dream of having your computer as well as adding new features to the one you are already having. So just go for computer finance to get your desires fulfilled.

Diagnostic Equipment Financing

Again, constant changes in computer technology also call for upgrade in automatic diagnostic equipment. Therefore it is essential to acquire diagnostic equipment financing from reliable financing companies that do not call for long and tedious application procedures. The traditional financing company may not be ready to clear the loan even to the qualified automotive companies due to lack of knowledge about the field. Hence expertise approach is required to get financial help. There are some genuine financing companies that have adequate knowledge about latest developments in this field and they offer diagnostic equipment financing at low interest rates.

There are various types of financing options provided by some of the real financing companies. Dynamometer financing is one among them which helps to acquire diagnostic equipment. The dynamometer helps in measuring torque and rotational speed of the engine. The cost of the equipment is extremely high and so the need for seeking diagnostic equipment financing from a reliable company is a must.

Vehicle emission testing equipment is the essential diagnostic equipment required by any automotive shop. It helps locating leaks and accessing mobile source emissions. The modern automotive shops need to help their customers to verify whether there are any leaks or emissions in excess of Federal guidelines. For this purpose they need to maintain vehicle emission testing equipment in their shops. However this equipment carries a high price tag and so diagnostic equipment financing from any valid financing company is required. However investing in a vehicle emission testing equipment is not an expense. It helps to satisfy customers and thereby increase the number of potential customers.

Vehicle engine analyzer equipment is diagnostic equipment required for an automotive shop. This equipment helps in saving time by diagnosing the problem in a number of cars simultaneously. It uses modern sophisticated electronics and thus delivers the report of problem areas in the vehicle. Therefore its use is inevitable in any automotive shop. But the equipment is pricey. Hence it is important take the aid of diagnostic equipment financing to purchase such vehicles.

There are laser based vehicle engine analyzers which are quite expensive. Due to their high prices, many automotive shops prefer diagnostic equipment financing to acquire them. It is made possible for almost all automotive shop owners to acquire valuable diagnostic equipment through diagnostic equipment financing.

Diagnostic equipments help in controlling various functions. They help in getting faster reports about the problematic areas in vehicles. Though expensive, they ensure smooth running of automotive business. Therefore seeking the financial help of certain companies is often advisable. They help to get secure financing with minimum application procedures. They also provide fast approval. Hence automotive shop owners can avail the benefits provided by such companies and get better terms of financing.

Chris Fletcher is an Account Executive at a national equipment finance company providing new and used Diagnostic Equipment Financing at http://www.crestcapital.com/Catalog/Automotive_and_Diagnostic_Equipment_Financing_Diagnostic_Equipment_Financing as well as financing for many other equipment types and industry verticals.

Taking the Mystery out of Software Financing and Software Leasing

This view is shared by both end-users, and the developers of software. Companies who think nothing of financing a vehicle or a new computer system will stress over how they will pay for expensive new business software. And the producers of software see no need for offering a software leasing or a software financing option.

But times are changing.

Third party equipment finance companies - companies who offer small and medium size businesses equipment financing and working capital – have responded to a need for software financing and software leasing. Thus, they are starting to include software amongst the equipment they finance or lease. There is one big overriding reason for this shift:

The High Cost of Buying Software

The simple fact is this: Software can be very, very expensive. Oftentimes more expensive than the hardware that runs it.

Now, keep in mind that when we are talking about software in this way, we are generally talking about “vertical software”. Vertical software is software that is written for a specific, narrow industry (this can include industry-specific point-of-sale software, ERP systems, specialized databases, etc). It is not software that’s available on the shelf at your local office supply store (the software you see there, even the business programs and operating systems, are “horizontal software” – they can be used across a variety of industries, and are relatively affordable.)

A good, clear example of vertical software is an auto parts store - they use software that’s specifically written for the auto parts industry. Another example is your local jewelry retailer – they likely use a point-of-sale system specifically made for the jewelry industry.

To understand how software financing and software leasing can positively affect a business, it is important to understand the advantages of vertical software first.

For most businesses, Vertical Software usually means far more efficient business processes. In the case of an auto parts store, for example, the software will already anticipate the thousands of automobile makes and models. And will almost certainly be updated every year. The jewelry store’s software will differentiate the subtle differences between two diamonds by any number of categories. And so on.

In fact, these “vertical” software programs are so effective, and become so crucial to day-to-day operations, that businesses often need this type of software to remain competitive. In many cases, it’s not an option to do without.

However, since the software is so narrowly focused, it usually comes with a hefty price tag. The developer will sell relatively few copies as opposed to a word processing program (which will sell in the millions), so they must get a premium for their work. Vertical software can sometimes reach five figures for a single license.

This brings an obvious problem: “Businesses need the software, but it’s very costly to buy outright.”

And that’s where software leasing and software financing come in – business don’t have to “buy” it upfront.

The Advantage of Software Leasing and Software Financing

The advantage of financing or leasing software is clear:

Software leasing and software financing take the huge up-front cost of new software out of the equation. Like most other business equipment, software is now beginning to be seen as a tangible asset (this was not always the case.) This means software can largely be treated as any other equipment purchase in the case of financing or leasing. A business can finance that new ERP system instead of having to budget a huge cash outlay.

This can be very beneficial to the bottom line, as software generally pays for itself over time. In fact, since “vertical” software almost always reduces the cost of doing day-to-day business, leasing or financing said software can actually create a positive cash flow right away.

But Who Offers Software Financing or Software Leasing, and how does it Work?

It’s true that software developers have been very slow to embrace the business model of software financing or software leasing. They would prefer to be paid up front for their software.

Likewise, banks, being part of an “older” industry, are also largely reluctant to finance software.

However, third party equipment finance companies who specialize in small and medium sized business equipment financing often offer attractive software lease and software financing packages. What happens is the equipment finance company pays the developer in full, and then provides the software to the end user under a finance or lease agreement, often at very attractive rates. In all actuality, it’s fundamentally the same as financing or leasing most other equipment.

Of course, like any other financing, the agreements can (and will) vary from traditional fixed rate financing to a “software lease” with a buyout at the end, etc. And the rates and terms also vary – your individual equipment finance company will have more details.

All in all, software financing and software leasing have definitely entered the business consciousness, and because it is so friendly to the bottom line, it is a business model that is here to stay.

Software leasing and Software financing are only a few of the services provided by Crest Capital. Regardless of the size of your company, Crest Capital can provide you with the equipment financing and working capital you need to successfully grow your business. Learn about financing options that can increase your bottom line and reduce your 2007 tax bill with a free online quote today.

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