By :
Rob Renk
Utilizing a Collateral Lease Program may be the best solution for you if you are having problems getting approved for the new equipment that you need, either to replace something that just broke down or that you need to expand your business because you just landed a new contract for your services.
What is a Collateral Lease?
A Collateral Lease uses your additional collateral in your currently owned hard asset equipment(see examples of these below) and/or your real estate equity, either in your business or your personal residence.
By utilizing this type of lease, you are not restricted on the equipment type being leased, your credit scores, or your time in business. Also, financials are usually not required with this type of lease since additional collateral is being provided to secure the lease for your new equipment.
Lease deals that can be helped by using a this type of lease program include some of the following:
*Traditional Asset-Based deals
*Sale-Leasebacks
*Private-Party Sales
*Start-Ups
*Working Capital
*Owner/operator Trucks
*Prior Bankruptcies
*Tax Liens
*Judgements
*Repossessions
*Slow Payments
If you have experienced any of the above and have been turned down by traditional banks and leasing companies then you need to take a cold hard look at how a collateral lease can help you.
A terrific way to use this type of lease would be during the start-up period of your business. During these tough times the banks are frowning upon lending money to start-up businesses, but if you are able to provide collateral a lease may be the way to go to finance your start-up equipment needs.
Another good idea is to use this type when you have a private-party sale. For example: You are selling a backhoe to someone who really needs it, but they don't have the ability to pay in cash and the bank is out of the question. If they have some collateral to put up against the amount needed for the lease, be it a hard asset or real estate equity, the deal can usually be done quickly.
Some of the best equipment that can used as a Hard Asset would be:
*Trucks and Trailers
*Construction/Yellow Iron
*Loaders
*Excavators
*Cranes
*Bulldozers
*Logging Equipment
*Machine Shop Tools
*Large Forklifts
Other types of collateral that can be used as additional collateral for this program would be: stocks, bonds, CDs, Mutual Funds, Non-Tax-Advantage Accounts and personal vehicles with a value greater than ten thousand dollars.
The above is just a sample of the equipment that can be used as collateral. This type of lease may work well for you if you have been turned down for traditional forms of leasing or financing. There are other types of equipment that can be used, but they are not as valuable as the lists above.
In these tough times you need to gain any bit of good financial knowledge that you can grab and this type of program can help assist you in these times when the banks and other lending sources tighten up their guide lines, but these are the times that you really need the money to get the equipment you need. This is a possible solution for you and is available for your business to use today.
Author Resource:-
Rob Renk writes about Alternative Financing for Small Businesses. He has over 15 years experience in financial services and is owner of EquiLeaseOne.com. If you want more information about a Collateral Lease,
you can contact Rob directly at 303-521-7622 or click here.
![[Valid RSS feed]](http://www.articlesbacklink.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
