Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How Companies Can Be Bankable to Get Capital Equipment Financing

By Mark Jonathon Subscribe to RSS | December 27th 2011 | Views:
loading
 
  



Most business owners feel like champions once they have seen their first 3-4 years. Through these years, they have to pour in a lot of effort, money and energy to make their companies run and grow. All business owners would agree that the start up phase is the most challenging time. It is in these initial years that creditors and lenders turn their back on you. These are also years when you are in prime need of funds. But the companies offering capital equipment financing have their concerns too. Statistics show that it is very risky to lend money to new ventures. But once you are through the first three years of business, you have stabilized your company and are hopefully making good profits too. Having reached this stable status, you should not have any problems getting adequate capital equipment financing. But this can only happen when you are bankable.

Though most business owners feel they are bankable after the first three years, the views of the commercial lenders vary. Commercial lenders take into consideration many issues such as how you operated your business in the initial years and what funds you currently have in the bank. There are few things that you should keep in mind if you want your capital equipment financing applications to be approved every time.

Look through your sales charts and consider whether the majority of your sales are coming from a selected few customers. If they are, then you should take some precautionary measures. Sales from few key customers would make your company vulnerable and heavily dependent on these customers. Commercial lenders will have concerns for these types of companies. They would know that if some of these customers leave then the business could collapse in a heap. Therefore, you should always try to widen your customer base and offer services to a larger range of customers. This will not only stabilize your sales but reduce chances of sudden collapse.

Another point to consider is whether you are having lots of sales but little profits. As a startup company you would have sold products to your customers at low prices just to promote the goodwill and name of the company. It is a good strategy for a startup company but not so good for a company which is more established. You should begin pricing your products and/or services more strategically to meet the industry specific profit margins. This will give you good profit figures and encourage commercial lenders to approve your capital equipment financing application.

Make sure you choose a capital equipment financing lender based on their specialization. You may meet all of the necessary financial criteria but your application may still get denied if the commercial lender doesn’t have a good understanding of your industry or your equipment needs. So make sure that the lender you choose is experienced with type of financing you need.

If you can keep the above mentioned points in mind, you have a better chance of getting your capital equipment financing application approved when you need funding.

Mark Jonathon - About Author:
Envision Capital is the leading capital equipment financing company. They offer various types of leasing programs to meet the needs of the business owners.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/how-companies-can-be-bankable-to-get-capital-equipment-financing.htm

Related Business Articles Subscribe to RSS

Take your business places with an equipment loan and small business loan
Published by Jack on August 10th 2012 | Business
No business, whether large or small, can survive without some form of credit. The same rule applies ...
 
Techniques for medical equipment manufacturers Through Supercharge your provide you with company lately!
Published by Samuel Willie on May 29th 2012 | Business
Advancing produce thread control might be a section of concern through a large amount of insurance c...
 
Refurbished Telecom equipment, an In-depth Study
Published by Angie Turner on May 29th 2012 | Business
Small businesses are always on the look out of saving money and keeping expenses within budget....
 
The role of heavy equipment operator in Construction Work
Published by Bobby Roy on July 2nd 2012 | Business
There are many companies in the market who provides heavy equipment services but Barsienterprises of...
 
The research and analytical laboratories require different types of equipment
Published by Todd Viscometer on May 14th 2012 | Business
Quality of laboratory equipment, laboratory, research and analysis of the demand is increasing. Need...
 
Investing as a home caterer means finding the best kitchen equipment and tools
Published by Adair Sawyer on May 17th 2012 | Business
If you hold parties regularly and you are always the preferred host for most parties and social even...
 
UK Shopfittings Limited are the UKs number one shopfitting equipment and supplies
Published by Mary Porter on June 17th 2012 | Business
All of the shopfittings solutions that we offer our clients are manufactured exclusively in the UK. ...
 
Wireless monitoring equipment, security industry ushered in the spring——www.apexis.com.cn
Published by Guardlyer on April 23rd 2012 | Business
The wireless monitoring device consists of three parts:
● Front End: cameras, lenses, PTZ de...
 
There is a ton of kitchen equipment that you can take advantage of if you would like to create a catering business
Published by Adair Sawyer on May 17th 2012 | Business
So you are already starting to realize that you want to pursue the catering business. You think that...
 
Special features of Trackmobile equipment
Published by Gary Skinner on August 9th 2012 | Business
Briggs rail provide trackmobile equipment with special features. Trackmobile Railcar is beneficial t...
 
Delay generator is electronic test equipment
Published by Bncscientific on May 24th 2012 | Business
In this technical era, advanced technology has made everything so easy that only with pressing one b...
 
Sandblasting equipment– Different types
Published by Mary Porter on June 20th 2012 | Business
The lack of surface recontamination also allows the use of single equipment for multiple blasting op...
 
Cater Equipment can deck out your watering hole with superior bar equipment
Published by James Blee on June 16th 2012 | Business
Are you the proprietor of a recognised and much-frequented watering hole and are looking to re-vamp ...
 
Catering equipment
Published by Simona on January 17th 2012 | Business
A professional catering business is an excellent business option and the profit can be significant p...
 
Necessary safety equipment when Working at Height
Published by on March 27th 2012 | Business
Fall arrest equipment is some of the most important equipment for anyone working at height especiall...
 
New body armor technology is one of the latest advancements in police equipment
Published by Thomasgalvin on December 31st 2011 | Business
The current economic environment is affecting city, state and federal budgets and the current admini...
 
Buying the right equipment for your off-road adventure
Published by Angelique Daniel on February 7th 2012 | Business
When undertaking adventures off road one should ensure that the vehicle is equipped with reliable an...
 
Get all the precision measurement and calibration equipment you need ffor your business all under one roof
Published by Rossbrown Sales on January 17th 2012 | Business
Get all the precision measurement and calibration equipment you need for your business all under one...
 
Find intelligent, dependable solutions for offshore container equipment
Published by Sherman Barber on May 2nd 2012 | Business
If you own or are part of a business that needs to move goods from port to port, then you want shipp...
 
Bar equipment needs to be really effective
Published by Mary Porter on July 10th 2012 | Business
If you are in the leisure industry and you are running a bar then you will need the best bar equipme...