A great article

I loved this article in the Wall Street Journal - it talks to small business owners (not at them) - and has some great tips.

Here is the link:

http://online.wsj.com/article/SB122256833525883041.html?mod=googlenews_wsj

Happy Reading.

A Recent Study Shows........................

A recent study revealed in the last week by Wells Fargo Small Business Administration, shows that nearly half of small businesses are completely putting off large purchases for fear of money problems. The effect is felt widespread across the industry, like an earthquake. And SMALL BUSINESSES are getting hurt, they can't stay competitive, and they certainly can't gain an edge in their marketplace.

Sure, Equipment Leasing can help them - it is designed to keep cash-flow liquid. But, there may be other genius solutions sitting under their noses as well.

That's why many recommend a mid-year business check up, so to speak. Call in a professional business analyst, explain your situation, turn over your balance sheets and P&L's - and see what remedies they have in mind. More often than not some small tweaks, can make some big differences to your bottom line.

How to find a trustworthy business professional to make a "house call" at your business? Try looking through a peer-based professional referral site; like www.guru.com ... Guru.com is almost like an "Angie's List" of the business world. Instead of rating contractors and the like, they rate business consultants, accountants, analysts etc. I have found many incredible professionals using this web site, and have used it as a secret weapon in building my team.

Chamber of Commerce..... ?

Question to all the business owners out there.

Is the Chamber of Commerce in your city, a resource you utilize?

I have conflicting reports from all my different clients, and wanted to do a sort of informal poll.

Vendors, Clients, Approvals - OH MY!

What is so special about the Vendor/Leasing Company relationship?

As a business, the vendor needs to make SALES. That is their mindset, that is their ultimate goal, that should be their ONLY concern. How many deals can we close in ONE month.

What can help you close more deals? Having a solid financing company that partners with you to complete the sale - makes all the difference in the world.

The vendor can worry about selling their product, and the finance company can worry about the rest.

The right kind of symbiotic relationship can absolutely increase sales for any size business.

Things that a good finance partner should be able to do for you (the vendor):

• Take incredibly good care of your clients, make them feel coddled and handheld during the funding process
• Shop around for terrific rates, make sure there aren't hidden fees folded into the mix
• A good finance company will be able to get all kinds of deals approved, not just A credit
• For that matter, ask your leasing agent what percentage of deals get approvals? If it is below 75%, I would be worried...

In a nutshell, you want a financial services company that will become your partner in making/closing/ and FUNDING the transaction. So you can worry about selling MORE of your products, and know that all of the background noise etc. will be taken care of. And the good clients you have that need financing, will be taken care of professionally, swiftly, and fairly.

Now go Sell!

I'm Confused... What Kind of Leases ARE There?

By curious business owners I get asked this question a lot: "What kind of leases are there? What's the dang difference?"
So, finishing up some paperwork I thought I would just riff a little bit about this topic...

The Operating Lease is typically the more favored leasing choice for small to mid-size businesses. This breaks down in the way that the Leasing Company retains ownership of the equipment, and the monthly payments for the business owner are considered a monthly operating expense and fully tax deductible. Business owners like this because it keeps their balance sheets light in the knickers, and money is able to flow where needed.

The Capital Lease is like the friendly step sister to a typical loan... Lots of similarities between the two. Here, the equipment is considered to be "owned" by the business, it shows up on your balance sheet as an asset - and as such the business assumes some of the risks and some of the benefits of ownership.

Buy-out Options: Behind Door Number One we have The FMV option. Fair Market Value! This means that you can easily purchase the equipment at the end of your lease terms for its "Fair Makrket Value" ... Could be hundreds of dollars, typically nothing insane. Behind Door Number Two we have the $1 buy-out option. This is simply, at the end of your lease - the equipment can be yours for merely four quarters.

Lots of things go into WHY you should choose exactly which lease, with which Buy-out option... Make sure you have someone trustworthy that you can bounce your thoughts off of.

Your Credit Score is Your Weapon.

In the grown up world, your credit score is your weapon...

So, are you fighting with an AK 47, or a slingshot? Many of us have messed around in our youth muddying up our credit (GUILTYYY!) - we didn't really understand the implications or the importance, it didn't seem real! It felt like a play number, and it was boring to think about. Then BAM, all of a sudden you grow up and before you can do ANYTHING, before you can even buy a cell phone, they are asking for your credit score - and running credit checks.

When I woke up one day and realized that my credit score was my responsibility, I was horrified. It was true - I had some repair work to do. With some diligence and some effort, and some RELUCTANT changes in my behavior I achieved a good score. You can do the same.

Pay your bills on time. A good trade reference, meaning proof that you follow your payment schedule and pay your bills on time is HUGE. Often times when I am writing lease deals - and the credit is borderline and the lender may go either way, I can eek out an approval by showing history of on time payment. I live by my online bank auto bill pay, you simly set it and forget it.

Get a credit card, do your research for the low interest rates - if you have the abilty to do so join a credit union. With your credit card start making little purchases that you KNOW you can pay off in full the next month. This aids in building your credit history, as lenders see having NO credit equally as bad as having poor credit.

Check your own credit report. Dont be surprised by the number when a professional tells you, know where your score lands. Also, go through your credit reports with a fine tooth comb, because recent studies show that over 80% of us have mistakes on our credit report! That's a huge number of us that are walking around suffering for crimes that we didn't commit!

It might even be worthwhile to sign up with a "credit mending" professional. For a small fee, and over the period of a few months they work to PERMANENTLY erase black marks from your credit and elevate your score. I have a few companies that I have had good experiences with in this vein, and would be happy to recommend them to anyone in need (I can also try to work a discount on services for you).

My last tip is: Be as mean as a prison guard when it comes to unnecesary checks of your credit (NO offense meant to kindly prison guards)! Everytime your credit is checked it does weaken your score a smidge - and often times companies are careless and because of poor communication within the company, they will check your credit multiple times for ONE transaction. It is YOUR business, make sure you ask the right questions and show them that you are vigilant and these types of mistakes are less likely to affect you.

Good Luck, and here's to EXCELLENT credit for all of us!

LEASE OR BUY?

What is so important about making the right decision between leasing and buying equipment?

Not to be overly dramatic so early in the morning, but the decision you make on the above question could be the difference between your business succeeding or failing. Cash-flow is the number one reason businesses, especially new businesses, flail and then fold. 

With Equipment leasing there is no hefty down payment required, allowing you to keep your money in the bank, in a high yield savings account, or even in the stock market (although risk is involved with the latter) working FOR YOU. That money is in turn at the ready for use, should you encounter unexpected costs in doing business (which we, as business owners, ALWAYS encounter unexpected costs) you have an account full of money to get you through. Plus, your personal credit lines are untouched - as leasing doesn't affect your credit.  So, should you need to take drastic measures, and get a loan of some sort, the leasing debt will not appear and interfere with your ability to secure funding.  Again, these simple small measures can actually keep your business afloat. 

Another angle for business owners: you need to evaluate the type of equipment you are in need of... as most equipment is continually, and tirelessly upgraded.  And with leasing rather than "owning" you can fully combat obsolescence; that way you won't get stuck owning a "dinosaur."

All of these things factor in to how truly important it is to make the right decision, when at the crossroads of Equipment Leasing vs. Purchasing. In the end, study the facts, talk to professionals - and understand that there is no right or wrong answer, there is ONLY what is right for you and your business right now. 

Never Pay CASH for Equipment!

Chances are you don't have a bank account full of idle cash, just exploding with 0's - and ready to be spent willy nilly. BUT, even if you did (and I hope you do!) PLEASE don't pay cash for your equipment outright.

But, Crystal - why not?

Because any business expert will tell you, and I agree, that there is always an area of your business that needs to be IMPROVED. There is always a sector of your business that needs attention, where the money would be better spent. 

Because the future is unknown, what if next month is filled with curveballs and you need capital to solve the dilemma?

Because the second you pay for your piece of equipment - it has ALREADY depreciated. And that depreciation is your loss. Whereas with leasing the depreciation (of up to $125,000) is tax deductible.

If you are itching to spend your money and purchase the equipment outright, do so, but then LEASE it back to yourself. 

Sign of the Times

Are we in a recession?

Who knows.

Every day another study is released with experts saying "Yes, we are." Or "No, we're not."

What I do know, and what I think we ALL know - is that we ARE in the midst of an economic slow down.

Who knows how tight the grip will be on the economy, and who knows how long it will last. For businesses, now is the time to be saving your money and saving your credit, should the lean moments continue.

With the stimulus package having been passed by the government, many of my clients have received checks in the mail... and my simple advice has been: Rather than running out and using that money on a down-payment for a new or used piece of equipment, I have advised them to DEPOSIT the check in an interest bearing account, and lease what they need INSTEAD. With 100% financing offered by leasing, it is a WIN/WIN. They get the equipment they need to stay successful, and they also save money for a rainy day... or a rainy week (depending on which economy expert you are listening to!)

Let's Talk Leasing

I started this company to assist businesses - small, medium, or large. I wanted to help business owners capitalize on the good times, and survive during the lean times. Leasing equipment definitely does that. Here on this blog I invite business owners to talk about their experiences in the entrepreneurial world, not totally limited to their leasing experiences. What has worked for you, what have you found challenging? Feel free to use my resources, and ask me questions. Allow me to simplify the world of equipment leasing, whether you sit at a desk or drive a tractor for a living - the universal responsibilities and needs of a business owner are the same.

A trend I am seeing a lot of right now, clients that typically would be pulling money out of their home by refinancing - but, because the real estate market is in such a precarious position at the time being with loans being so hard to secure, they are turning to equipment leasing - and finding it is answering all of their needs, and still leaving their equity intact.

Credit Tip:

It is important to watch your credit score, I recommend checking your credit report sporadically for inaccuracies. In recent studies, nearly 80% of credit reports have errors, and almost 25% have misinformation severe enough to contribute to an application denial. There are lots of places to obtain a credit report, my personal favorite is www.FreeCreditReport.com, and not just because of their wacky musical commercials.

In The News

Lease With Crystal Joins Lease One & Helps Small Business Land Affordable Equipment Leasing

Lease With Crystal today launched its small business-focused equipment to help entrepreneurs compete with larger, more established businesses.

San Jose, CA (In The News) - Lease With Crystal a company focused on helping small businesses compete with their more established counterparts today opened its doors. Lease With Crystal offers leasing services to small businesses that don't want to or cannot afford to bear the burden and heavy costs associated with owning equipment.

"By leasing equipment, entrepreneurs and small business owners can keep their bank accounts full and still have the cutting-edge equipment they need to be competitive in the marketplace," says Crystal Riley, founder of Lease With Crystal. "It's a service that will help a lot of small businesses grow, even in an economy that might not favor the little guy."

Having partnered with Lease One, a leading financial services company that provides flexible and creative asset-based financing for its clients, Riley will leverage the relationships they've built with equipment companies and provide the same level of Fortune 500 service to small business owners. Lease One has moved billions of dollars of equipment over the last 19 years and has helped larger businesses lease equipment in a variety of industries.

Leasing equipment is quickly becoming the favored choice for many growing and established businesses around the country. Small business owners will find it even more attractive because the lower monthly cost associated with leasing keeps the strain off their bank account. What's more, since the equipment can be refreshed and updated at the end of a lease, the entrepreneur will never be stuck with aging equipment.

Riley notes that with an economic slowdown gripping the nation and a recession just around the corner, small businesses around the country don't necessarily have the cash flow to purchase the equipment they need to build their business. Riley came to this realization after attempting to open a small business of her own and concluding that she'd have to risk her own nest egg on equipment just to get it off the ground.

According to Riley, Lease With Crystal is the ideal solution for startups and other small businesses. By providing small business owners with a friendly, approachable service and the experience and funding ability of powerhouse Lease One, entrepreneurs can instantly gain a competitive edge that might not be available with regular financing. Full details on Lease With Crystal can be found at www.leasewithcrystal.com.

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