Archive for Cash Flow
Apr
26
Equipment Leasing and Financing, All Industries
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For the equipment leasing and financing industry in 2008, economic times were no different than most U.S Industries. The transaction and sale volume as a whole was rapidly declining as we draw to the close of this year. Many lenders, lessor/brokers were either in an illiquid position or possibly out of the business due to the declining economic times.
As gas prices and the rate the federal reserve charges it best customers have gone down, the interest/rate factors charged by lessors have not. The combination of the down payment, the additional lending requirements and the high cost of borrowing money has depressed the leasing industry..
In addition, the lenders/lessors in 2008 have seen record repossessions and they have assumed a tremendous amounts of additional repossessed inventories. These problems combined with the difficult economic times has changed the leasing industry as we have recognized it in the past…. Many lenders have had to focus on their repossessed inventories instead of normal business due to cash flow demands, out of balance credit lines with their own lenders, and competing with other lenders for the small supply of buyers in the market place.
In the prior better times, there were many application only programs up to $250,000 and $150,000. This meant there was no financial statements, tax returns or bank statements required. Today, there are less application only lending programs available, or the available programs require more information and their rate factors are higher than before. Due to problems in the industry, many lenders have gone back to more conventional lending requirements. .
These lending changes have a tremendous impact on normal business for marginal credit buyers, startup businesses. and more mature businesses. One interesting area that has arisen out of this economic downturn is dealer/special financing. With all the repossessions in the market place today, buyers still have an unique business opportunity to acquire a repossession. Repossessions can be obtained with very little or no money down, sixty months to repay, regardless of age, and more favorable financing terms than conventional financing.
Since new business capital is difficult to obtain, it is suggested that the startup and seasoned business examine the repo markets. This could be a rewarding in the combination of both price and financing.
The following types of industries are examples of what we are describing here for equipment leasing and financing construction trucks and equipment, work and commercial vehicles, over the road trucking including semis and big rigs, commercial trailers including flatbed, bottom and end dump, dry van etc and all types of construction equipment, backhoes, excavators, bulldozers, dump trucks, farm equipment, forestry equipment, heavy equipment, garbage trucks, etc
If conventional isn’t available to you for whatever reason, please check out the repossession market and see what deals you may be eligible for.
Quick House Sale
Apr
13
The Credit Crunch Downturn is Affecting the Commercial Property Sector
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The commercial properties market is experiencing an international economic slowdown, marking the end of a fourteen year boom. The number of available commercial properties for sale and for lease is at an all time high (unlike conventional homes for sale) due to the fact that occupier demand and new occupier enquiries for commercial real estate has declined at one of the fastest paces seen in the commercial buildings industry since the 1990’s.
The commercial real estate market is becoming increasingly tenant driven and if you are currently looking into commercial properties for lease or for sale there are great deals to be had, especially in central London. In order to try to counteract the declining demand for commercial property landlords are also offering high value inducements and incentives to tenants in order to try to secure illusive new lettings. Tenants are finding that their demands are being met at all levels and that they have a greater bargaining power being able to push lease lengths down at one of the fastest rates ever recorded and acquire some real commercial property bargains. For the first time in a long time the commercial property market is being tenant driven and the majority of tenants are taking full advantage of their newly found and ever increasing buyer power.
As with any kind of market change whether good or bad some companies are therefore actually benefiting from the credit crunch’s effect on the commercial properties market. Decreased rents, increased inducements and better lease terms all mean that in some cases businesses are being able to take out prestigious commercial property leases that previously would have been inaccessible to them.
Of course the downturn is not be taken lightly and many companies with lease agreements already in place are planning to reduce their commercial property lettings spaces in a desperate attempt to free up some much needed cash flow. Lengthy lease agreements mean that this often isn’t a readily available option but those with tenant break clauses in place are thankful for their foresight and careful planning. The companies most affected are not surprisingly part of the industries that have been most disturbed by the credit crunch as a whole and include those in the retail, leisure, financial services and manufacturing sectors.
Investment property is losing its appeal rapidly so landlords are going to have to continue to come up with new ways of making their commercial real estate more attractive in order to decrease the amount of commercial properties for sale and for rent that are currently available. Despite the current market unrest some companies still view commercial property as a good long term investment and are sitting tight whilst they weather the effect the credit crunch storm has had on the real estate and commercial properties industry.
Sell and Rent Back
