Leasing And Your Credit Score September 17, 2008
Posted by janey in : lease finance , comments closedYour credit score is part of the leasing decision. When you apply for a lease, your lease company will typically look at your credit score to decide whether you to approve the application.
The leasing contract stipulates that you make regular, monthly payments over your lease term. The credit score you lease company requests identifies how likely you are to make such payments. It is simply a number calculated according to a model that takes into account your payment history, any amounts you owe and credit currently in use.
Leasing and your credit score
It is very important to keep a good credit-score, usually above 700, to qualify for a lease or any other lending decision. Start by ordering your credit report from Fair Isaac Corp, the company that creates your credit score. If erroneous data is held about you, then contact the creditor responsible and get such information corrected. Your payment history is the single most important factor in determining your credit score, so get in the habit of paying everything you owe on time and keep the balances low in your credit cards.
Ever wanted to terminate your lease early, comfortable with the thought you werent going to be hit with hefty fees? You can if you transfer your lease to someone else.
Trading a lease is the best option for people who want to terminate a lease early and dont want to pay the large termination imposed by most lease agents. It can also be an alternative to get out of a lease for far less than you would otherwise pay your original lease company for extra mileage and wear-and-tear charges that can run into the thousands of dollars. For a small fee, you can advertise your car lease for assumption to a large number of potential buyers on the look-out for leases on the Internet. Such services include LeaseTrader.com, the originator of online lease-trading and the biggest online marketplace where most lease transfers take place, and smaller marketplaces such as BreakAlead.com and TradeAlease.com
About Leasing
Before swapping your lease, make sure your leasing company approves lease transfer transactions. Caution must be exercised in choosing a lease swapping service: make sure they facilitate the whole lease transfer process, offer online or telephone customer-service help and registered buyers undergo stringent credit checks.
Consider Leasing Your Construction Equipment June 17, 2008
Posted by janey in : lease finance , comments closedAs your construction business expands, you may find that it is necessary to improve your existing equipment, or add to your fleet, in order to be able to accommodate more jobs, or expand your services.
Choosing to lease that equipment, instead of purchasing it outright, is often a smart business move.
Often when you finance your construction equipment through a bank or broker, you will have to have a large down payment.
With leasing, however, the required down payment is usually significantly lower, and the terms and conditions of a lease may be more favorable than those associated with a loan or purchase.
Many leases also offer fixed payment terms that can insulate your business from many of the economic changes that banks have to take into consideration when adjusting interest rates and finance charges.
Some other important leasing considerations include:
* conservation of operating capital
* meeting budget demands more easily
* saving credit lines and loans for emergency or other high demand situations
* keeping up with technology.
While you should always obtain advice from your accounting professional, you may also find there is a substantial benefit to leasing construction equipment when it is time to file your taxes.
