General Equipment Financing
Question about finance
How does the finance person from the dealership I bought my car make his money?Here is the deal. I kind of got taken from a shady Persian gentlemen who did the financing for me at my local Honda dealership. So he got me for a higher interest rate, lied to me so I would purchase stuff like extended warranty and gap insurance. My question is this: Based on my original loan the total loan amount of my interest would have been like $12,000 spread out over six years. But I went ahead and paid a large portion of that down and refinanced with a third party – therefore reducing the total interest to something like
$3500 over four years. So here is my question. Does this dishonest finance guy at the dealership get a cut of the original $12,000 and get his money up front? Or will he only get a cut of the total amount of interest I paid on the original loan which was about $1300? I want to know if by refinancing through some other lender if I took money away from him that he was expecting would come to him based on the terms of the original loan?
There are some types of equipment that do not fall into any of the categories like agricultural equipment, automobile equipment and so on. Such equipments are categorized in the common heading General. General equipments help you improve your business or expand your business. However some of them may be expensive and so you need to go for general equipment financing to fulfill your needs.
There are various types of loans available for general equipment financing. Coin operated Amusement equipment provides more fun to people and so the entertainment companies want to install it. The equipment not only provides fun to people but also provides revenue to the companies. Some reliable financing companies offer financial assistance at low interest rates to acquire the equipment.
Vending machine financing comes under general equipment financing category. Vending machines provides a source of revenue for some business. A bottle vending machine, can vending machine or juice vending machine help generate revenues for the respective business people. Some business people may want number of such vending machines for their business prosperity. These people can get financial help from any of the genuine financing companies.
General equipment financing helps business people engaging in dry cleaning or laundry works. Any dry cleaning or laundry business depends highly on its heavy equipment. The modern cleaning equipments help in faster and better cleaning of garments. This in turn helps prosper the business. Any inefficient laundry equipment affects the flow of the business. Hence these equipments are not an expense but an investment. However they may be expensive and so some of the reliable financing companies provide financial assistance to acquire such equipments.
Fitness and exercise equipment also comes under the general equipment category for the purpose of financing. These equipments are essential for a gym, fitness center etc. Nowadays people are willing to spend more for exercises and fitness routines. Hence a gym or fitness center must contain modern equipments in order to inspire their customers. However some of the equipments like exercise bike, treadmill, rowing machine are expensive. Hence general equipment financing helps them flourish their business by way of providing loans at low interest rates to acquire fitness and exercise equipment.
Building maintenance equipments like carpet cleaning machine, floor scrubbing machine, polishing equipments etc are essential for some companies to clean and maintain their buildings. Some companies may require garbage disposal equipment like cardboard crushers or can crushers. These equipments help upgrading the appearance of the building and so they are also essential for small or big companies. They may not be cheap and so general equipment financing is often needed to acquire these equipments.
Fixture financing helps in acquiring any fixture like lighting system, shelving, cabinets etc for the company building. Any company can apply for the loan to buy fixtures from any of the valid financing companies.
The general equipment financing helps acquiring any if the general equipment that is required for smooth running of any business. This category covers any useful products the company wants to buy. The real financing companies provide assistance without any harassment.
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Tags: Equipment, Executive, finance, general, Jobs, Lease, leasing, loan
Posted on December 20th, 2009 at 12:29 am
With Jeffery Immelt at the helm and ruining G.E. stock (which is in the toilet along with NBC, and MSNBC'S ratings). This network is owned by George Soros and the fix is in. They, along with the N.Y. Times, CBS, ABC, CNN, and NBC along with MSNBC and now CNBC which was recently told to tow the line are all in the presidents corner and will never report against him in any way. The U.S. media is "owned " by the the government and will not report against them in any way. They despise mainstream Americans and mainstream America for its TRUE American values and will never report truthfully in any way.
Posted on December 20th, 2009 at 1:40 am
Linda,
Leasing used to be more attractive, because you could write off 100% of the payments on your income taxes, where if you purchased equipment, you could only write off equipment payments where you paid less than $20,000.
Since the tax law has changed, for equipment under $100,000, you can write if off regardless of whether you make lease payments or borrow money and make debt payments.
So… decide which to do by:
1) where you can get financing
2) interest charges and fees
3) end of contract terms (in a lease you can own the equipment at the end for a buyout – you must factor this into the decision to determine which option offers the best overall terms and costs.
Good Luck
Dana B
Posted on December 20th, 2009 at 2:09 am
I know you can find lots of high paying oil industry jobs by going to Oilcareer com
Posted on December 20th, 2009 at 11:40 am
The attached notes on cash flow statements should be useful to you.
Posted on December 20th, 2009 at 6:33 pm
Posted on December 21st, 2009 at 11:24 pm
I have flown seaplanes extensively as a bush pilot in Alaska. You cannot go wrong with a Beaver or Otter, but they are ALL 40 to 50 years old. Age is not nearly as important as condition and the quality of maintenance, so don't convince yourself that newer is necessarily better.
The Cessna Caravan is a good performer, but other than cruising speed it isn't nearly as good on floats as the DHC-3 for many reasons. If you want something modern and turbine powered in a larger aircraft, the Quest Kodiak is about your only other choice. I haven't flown one, but like the Otter and unlike the Caravan, it was specifically designed with bush flying in mind. See http://www.lionheartcreations.com/Kodiak.html
However, unless you have a very large budget, you may need to settle for something smaller like a Cessna 206, a Cessna 185 or even a Maule. Beaver's, Otters and Kodiaks are all big bucks. It depends on how many people and how much gear you intend to haul, and where you intend to do most of the flying.
Everything mentioned can be quickly converted from cargo to passenger configuration.
Recip engines are really not much less reliable than turbines, so you can disabuse yourself of the notion that you are gaining a significantly higher degree of safety. On top of that, turbines are more expensive to rebuild by a factor of at least 10 than a recip. The big advantage of a turbine powered floatplane is in maneuvering on the water. When you have zero thrust and reverse thrust at your disposal, tight situations become manageble. In a recip it takes more skill to handle difficult situations.
Don't forget to look at the insurance aspects too. The more seats, the higher the cost. Insuring for bush operations in Alaska or Canada is 3 times what it costs in the "lower 48", which itself isn't cheap. Low time pilots are also very expensive if not impossible to insure, so you may need to factor in the cost of hiring a pilot too.
By the way, how does one "justify" hunting and fishing as a business expense?
Posted on December 22nd, 2009 at 2:33 am
Income:
Also called earnings, profit, or the bottom line (because it is usually the final line on the financial statement known as an Income Statement). Income is essentially what is left after all expenses and costs are subtracted from revenues.
Income is important to management in profit-making companies which, by definition have the maintenance or improvement of income as a primary goal (along with the goal of protecting and increasing owner’s equity). Note that a statement about income always refers to a specific time period (e.g.., for a specific fiscal year or quarter). From the equation you can see there are two ways to improve income: increase revenues, or decrease expenses and costs.
Cash flow:
Like income, focuses on the difference between money coming in and money going out over a time period:
Net Cash Flow = Cash Inflows – Cash Outflows
Cash flow results do not, however, include some items found in the income statement, such as depreciation expense. Depreciation expense, for example, does not represent an actual cash payment during the reporting period, but rather an accounting charge against earnings. As a result, depreciation expense is not a "cash outflow" in the above equation. The income statement tells stockholders and taxing authorities what the company is credited with earning during a period; the cash flow statement tells management how much cash they have to work with (or how much they gained or lost)…
Posted on December 22nd, 2009 at 6:13 am
the entry
Dr 100000 equipment
Cr 25000 cash
Cr 75000 revenue anticipation notes
Posted on December 22nd, 2009 at 11:28 pm
I've sent the file to that address you gave me.
Posted on December 22nd, 2009 at 11:44 pm
I've sent the file to that address you gave me.