29Feb

Into Business For Themselves House Loan Trials

Filed in Feature Leave a comment

“Banks And Institutional Lenders Are Tightening Up On Their Self Employed Mortgage Offerings”

Recently, several of the major banks and mortgage lenders have either dropped their self employed mortgage products, or made significant adjustments to them.

These stated income mortgage programs have been a growth market for most mortgage lenders over the last decade as more and more people get on the path to self employment.

And up to this point, it hasn’t been all that difficult to get approved for financing at or near the best rates on the market, for similar terms and conditions that employed applicants get.

But that has now changed with the changes that have been seen among some of the major lenders in the market.

According to the lenders, the changes are all about managing their risk and to help curtain the impact on their portfolio as what some describe as sub prime lending, or close to sub prime lending.

The good news for the self employed is that there are still a number of options in the market, both with the main banks, secondary lenders, and credit unions. And the more you have to work with, the closer you can get to the better mortgage rates that are available in the market place.

For self employed individuals who are looking at putting the least amount down and have some challenges in supporting their annual cash flow, it could very well be that they are now going to be paying more for their mortgage financing.

This area of the market, with all

Into Business For Themselves House Loan Trials

, , , , ,

25Feb

Second Home Loan Overdrafts

Filed in Feature Leave a comment

“When Should You Consider Toronto Second Mortgage Loans?”

Toronto second mortgage loans are an avenue to provide additional financing against your home property.

The use of funds can be for a debt consolidation loan, renovation and construction loans, or some other purpose.

When additional funds are going to be required, borrowers will typically try to do a home mortgage refinance to either get a larger first mortgage to replace the existing residential home mortgage or have the existing home mortgage rewritten for a larger amount.

But a 1st mortgage refinancing may not be the best and lowest cost approach for a number of reasons,

Here are some of the more common situations where second mortgage financing would be a better option for acquiring the additional capital.

Prepayment penalties.  When refinancing a first mortgage where a term interest rate is in effect, there is the possibility that the process of repaying the principal will trigger a prepayment penalty.  Depending on the time remaining on the interest term, the amount of the penalty can be considerable and avoided if possible.  By leaving the first mortgage as is, one strategy would be to just apply for a second mortgage to acquire the additional funds being sought.  In many cases, the applicant will be able to secure a second mortgage loan at or near the interest rates available for a new first mortgage.
 
Decline in Credit.   When there is a decline in the credit profile of the borrower, the refinancing of the first mortgage may require the home owner to take on a higher interest rate for the new first

Second Home Loan Overdrafts

, , , , , , , ,

23Feb

Trader Equipment Leasing Program

Filed in Feature Leave a comment

 

What Is A Dealer Leasing Program?
A dealer leasing program can be defined in two different ways.

One definition would be where an equipment dealer provided an equipment lease to their customer, effectively becoming the financing company in the process.  The dealer would own the asset during the lease period and provide the equipment for the customer’s use in exchange for established leasing payments.

The other definition would be where a dealer introduces the customer to an equipment leasing program administered by a broker or leasing company representatives whereby the customer would effectively finance the acquisition of a piece of equipment to be purchased from the dealer through an equipment leasing company.

This last definition relates to what we do which is to set up dealer leasing programs to service the needs of a dealer’s customers.

 
Is There A Difference Between An Equipment Leasing Program Versus An Equipment Financing Program?
Equipment leasing is essentially a form of equipment financing, although some people will use the term equipment financing to relate to equipment loans versus equipment leases.

With an equipment loan, the customer owns the equipment and owes a loan balance to a lender.

With an equipment lease, the leasing company owns the equipment and provides the customer with use of the equipment in exchange for established lease payments.
What Is The Main Benefit Of  Our Dealer Leasing Programs?
The leasing programs we put in place for a dealer to service their customers provides the financing necessary to complete the purchase and sale process for customers that qualify for financing.

This will allow deals to close faster which will potentially lead to more sales and higher profits over time.
How Does A Dealer Go About Getting One Our Dealer Leasing Programs In Place?
The first step is to fill out a dealer profile that outlines how long you have been in business, lists trade references, and provides a summary of your business model including the types of equipment being sold, monthly sales volume, annual sales volume, product returns, sales warranties, and the percentage of sales that require equipment lease financing.

The second

Trader Equipment Leasing Program

17Feb

Computer Hardware Buying

Filed in Feature Leave a comment

Does Your Business Need to Lease Computer Hardware?
Computer hardware leasing is being provided by more and more leasing companies seeking to further diversify their portfolios as well as take advantage of the significant repeat business that can more from computer hardware purchases over time.

Computer hardware is a steadily growing segment of the equipment leasing market as more and more businesses become more and more dependent on computer related technology.

While more and more of the smaller leasing companies will entertain computer hardware financing requests in the small ticket range of under $50,000, the larger purchases are more limited to the leasing companies that have a significant focus in financing computer hardware and software requirements.

For the larger deals that can range from hundreds of thousands of dollars to well into the millions, the strength of the financing is based on the established cash flow of the company and the ability of the leasing company or group to be able to resell different types of systems into the open market.

The more customized the computer hardware requirements, the more the financing will be dependent on a good balance sheet of a well established company supported by strong business credit and accumulated retained earnings.

Each computer equipment leasing program will also different options for repayment plans ranging from a capital lease which acts similar to an equipment loan to an operating lease which can have a number of different repayment and end of lease buy out options.
Get

Computer Hardware Buying

TOP