Start Up Business Loans

Vague proposals are no substitute for a cap on rates, critics charge

The federal government’s clumsy attempt to regulate credit card lending through measures in the budget will do little to beef up consumer protections, critics charged.

Earlier this week, Finance Minister Jim Flaherty outlined a handful of proposals to better assist consumers in making "informed decisions" when using credit. But various politicians and some members of the business community said yesterday his plan lacks teeth.

Liberal Senator Pierrette Ringuette called Flaherty’s proposals an "insult," arguing he should have introduced rules to shield consumers and businesses from rising interest rates and fees. She raised those concerns with Liberal Leader Michael Ignatieff but also urged the Senate to investigate the industry.

"Facing a difficult financial situation, some Canadians will depend more on credit," Ringuette said. "Given the current state of our economy, consumers need to pay less interest to sustain their purchasing power."

Read Full News

 Credit Cards For Canadians

Equipment lease financing is a growing trend in the business industry today.  A great number of financing companies are now offering equipment lease financing, giving businesses more opportunity to avail of the best leasing terms.  As the competition among equipment leasing companies rises, small businesses can only benefit.

What is equipment leasing? 

Equipment leasing is a type of loan where instead of money, a business obtains equipment needed for the business in exchange for lease.  In simple terms, a business “rents” the equipment according to the payment terms arranged.  Usually, the payment term is set on a monthly basis but there are other payment options or leasing terms available aside from monthly installments.

A business who leases equipment can choose between two general leasing terms.  The first one allows a business to return the equipment leased after the leasing term. The other option allows a lessee to keep the equipment leased when the leasing term ends simply by paying its residual value.  This enables the lessee to fully own the equipment at a much lower price.

Who should consider equipment leasing?

Any business can benefit greatly from leasing business equipment.  Whether you’re just a newly start-up company, a small business planning on expansion, or a fully established company, equipment leasing can be an ideal option. 

However, in most cases, equipment leasing is done by businesses that are on the early stage.  This is because starting up a business really demands funding and most aspiring entrepreneurs don’t have sufficient cash on their own.

Applying for a lease?

There are many equipment leasing companies that you can consider online.  Visit their website to learn more about the company.  Here are just some of the questions you can ask yourself when checking out leasing companies:

• What is the company’s reputation?
• What are the policies? 
• What are the requirements?

Knowing the answers to the above questions will help you come up with an informed decision.  Take note that an equipment leasing company will not be the same company who will be providing you the equipment.  Instead, the leasing company will only provide the funds needed for the equipment you need. 

Thus, before applying for a lease, consider which equipment suppliers you want to get your equipment from and ask for price quotes.  Don’t forget to compare quotes from different equipment suppliers.  Suppliers may refer you to a leasing company they’re affiliated with.

Lastly, when speaking with a lessor, clarify whether you’re working directly with a leasing company or with a broker who represents a leasing company.  A broker may be looking after his own commission which can make your payment higher than it’s supposed to. 

This is not to say that working with a broker is a dreadful thing.  If you don’t know much about leasing, a good broker can help you find a leasing company that gives better rates.  However, it is always wise to make sure who exactly you’re dealing with right at the start of the negotiation.

Read More Equipment Leasing On the Rise

 Start Up Business Credit

OTTAWA (Reuters) – Canada’s minority Conservative government pledged on Monday to "spend what is necessary" to stimulate the economy as the country faces what the government said may be several difficult years.

Presenting its action plan in the Speech from the Throne, formally starting a new session of Parliament, the government said its economic stimulus plan would promote long-term growth while avoiding a return to permanent deficits.

The speech is technically a matter of confidence, meaning the government will fall unless one of the three opposition parties supports it. But more attention is being paid to Tuesday’s annual budget, also a confidence matter.

"Canadians face a difficult year — perhaps several difficult years. In the face of such uncertainty, our government has developed a clear and focused plan," the government said in the speech.

"Our government will spend what is necessary to stimulate the economy, and invest in what is necessary to protect our future prosperity."

Read Full News

Credit Cards For Canadians

Here and now, in vivid HTML, Car and Driver formally apologizes for naming the Renault Alliance to the 1983 10Best Cars list. For the last 26 years, it’s been gnawing at our collective gut like a shame-induced ulcer. The car was trash. We should have known that back then, and it’s taken us too long to confess our grievous mistake. Let this frank admission be the start of our penance.

It’s not the only blemish on our record, and we’re not the only publication to recognize a few stinkers with its highest honor. The history of automotive journalism has seen flaming piles of poo named “Car of the Year” even as they attract product liability lawsuits by the acre-foot and hunks of crud honored as “All-Stars” at the very moment buyers are seeking reimbursement under lemon laws.

It’s always a risk making judgments based on the initial exposure to a car, and sometimes a vehicle’s ultimate crappiness only reveals itself with the fullness of time. We’re all subject to hype for something that seems new, different, and maybe even better, and in this business, we all feel the crushing pressure to be timely, amusing, and authoritative. Being wrong is always a risk. Still, here are ten award winners for which somebody needs to apologize.

Read Full News

 Start Up Business Credit Cards

Any kind of business needs equipment in order to function.  But what if you don’t have enough budget to purchase all the equipments you need?  Some business owners resort to obtaining loans or borrowing money to shoulder these expenses. 

For some entrepreneurs, they prefer business equipment leasing over borrowing.  Is it really better to lease than to borrow money?  To answer this question, let’s consider the advantages of small business equipment leasing:

Low up-front cost.  Leasing equipment is a lot cheaper than obtaining a loan.   You don’t have to use up all your savings on buying different devices.  Business equipment is generally very expensive.  Most business owners had to invest very large sums of money just to buy special equipment necessary especially for production and manufacturing.  By leasing your equipment you can start with a smaller amount of cash and still obtain all the devices you need to start your business operations immediately. 

Get the latest equipment.  If you’re going to buy new equipment now, chances are, these new models will be obsolete after just a few years.  If you lease your equipment, you can easily upgrade them to more updated and more efficient devices without wasting your money.

Zero Down Payment.  Business equipment leasing requires zero down payment.  Loans usually require a down payment from the borrower.  With equipment leasing, you instantly get hold of the devices you need without putting down cash.

Tax advantages.  Devices that are leased are tax deductible.  If you’re going to lease business equipment, make sure to consult a tax professional to make sure that the equipment you leased will be qualified for a tax reduction.

Flexibility of terms.  Business equipment leasing has more flexible repayment terms depending on the type of business you’re running.  If you’re projects depend on customer orders or depends on the season, you can avail of short term equipment leasing that will enable you to continue your business operations any time of the year.

Utilize your business budget effectively.  When you’re leasing equipment, you can spend your extra budget on other important areas of your business.  You can spend it as additional capital, as marketing budget, or to take care of labor costs.  Equipment leasing helps a business to extend its cash flow, particularly those who are in small businesses.  Furthermore, because you immediately get hold of the equipment, you can start your production right away and start earning at once.

Not just the equipment.  When you obtain equipment leasing, you do not only get the equipment you need.  Companies that offer equipment leasing also provide additional services such as shipping, installation and maintenance of equipment, as well as training.

Equipment leasing is easy.  Unlike loan applications, you can apply for business equipment leasing without any complications.  Even for those who have a bad credit history, leasing equipment is much easier than getting a loan approval.  Equipment leasing companies offer clients quick online application processing. In fact, you can get approved on your equipment leasing application on the same day.

Read More  Why It Is Better To Lease Than To Borrow Money?

New Business Credit Cards