In my position, I talk to many business owners who manufacturer, distribute, or otherwise sell equipment. And most of them are small enough that they really don’t have an in-house financing department. Meaning their B2B customers pay cash (or otherwise arrange their own equipment financing.) Naturally, these companies would like to offer credit. So they look on the… Read More »
Here we are, at the end of 2012. The holidays are upon us, and the parties are in full swing. And since you are reading this, it’s clear the world didn’t end on 12/21/2012. The Mayans probably just ran out of paper (or stone tablets or whatever they used.) It was a rather ho-hum year, dominated by an… Read More »
This is it folks, the homestretch. If you want to use Section 179 for 2012, you’d better buy (or lease) your new (or new to you) equipment by midnight on 12/31/2012. Actually, it goes one better than that – you have to have the equipment installed / put into use by then. So just “buying” the equipment isn’t… Read More »
I’ve been talking recently about how companies tend to wait until some arbitrary date / time period to purchase / finance new equipment. The reasons are varied – from “use it or lose it” budgets to putting expenses on last month’s / last quarter’s report to making a grouchy accountant less grouchy, and so on. One thing is… Read More »
Ok, let’s continue our series on why an equipment financing company is better than the bank. And we’re up to reason #4, which is “compensating balance”. Now what is a compensating balance? Well, it’s nothing more than the bank saying “hey, we loaned you one hundred thousand dollars… the least you can do is have thirty thousand dollars… Read More »