Helpful Tips for Financing a New Car Purchase

If you are thinking about buying a new car there are a number of finance options available that could help you to afford this type of large purchase. Financing a new car can be a daunting task for some consumers as they may be nervous about taking on additional credit responsibilities. However if you take the time to understand the options available and manage your credit carefully then buying a car on finance can be a very effective way to fund your next car.

Tip 1: Understand Your Budget

Car finance can help you to buy a much better car than you might have been able to afford out of your income alone. However it is important not to get carried away otherwise you could end up overstretching your finances. This could be a burden on you for months and even years to come. Therefore it is essential that before you go out and start looking at cars that you sit down and go through your incomings and outgoings. Look at your current debt and expenses and set aside a manageable amount of money that you can allocate towards paying off a car loan or credit agreement. This will help you to judge how much you can afford to borrow against your new car. Once you have a sensible figure in mind you can then go out and start looking for your new car.

Tip 2: Talk to Your Local Dealer

It may be your first instinct to go to your bank for credit products but the face of finance is changing. The economic problems of the last few years have affected banks significantly and you will find that products such as personal loans are no longer as competitive as they used to be. In fact these days car dealers are able to offer some the best deals on car financing on the market. This means that it can actually be cheaper for you overall to buy and finance your car from the same place. Dealership car finance can also offer a number of other benefits to consumers as well. You can find some very competitive extras such as warranties and free servicing agreements that you wouldn’t get from a comparable personal loan from your local dealer. It is also much more convenient to get your car finance from the same place you are buying the car from. You could have your application approved and drive away your new car in just a few hours.

Tip 3: Deposits

Car finance is a lot more affordable if you can save up some money towards a deposit. This will mean you will be able to borrow less money in the first place so that you pay back less in interest overall. A deposit will also make you a more favourable lending risk for finance providers and can help you to get a much more competitive deal. Many car finance products such as Hire Purchase Agreements (HP) do require a small deposit of at least 10% of the car purchase price.

Quick Guide On Financing Your Business

Even the most attractive and lucrative business opportunity can be unsuccessful if you have insufficient business financing to continue on with the deal. This is really important in business acquisition since unique opportunities do not come very often. Therefore, finding business purchase financing on time is the key to scoring on such business deals. It is important to be adequately prepared when planning to buy a business establishment.

Finding funding for your prospect business Business acquisition financing generally comes in two methods:

1. Debt financing – You will rely on an outside source to acquire financing for your business.

2. Equity financing – You will sell shares or stocks of your business to some investors.

It is difficult to get approved on business acquisition financing through either method because credit market conditions are tight and investors are wary about providing financing. However, if you were a knowledgeable entrepreneur, it would be a lot easier for you to get past this ordeal.

There are few key aspects that you need to know if you want to use the first method to borrow a certain amount of money. In this approach, you will demonstrate your business skills and knowledge to prospective banks and lenders. The bank or the lender will most likely ask for detailed information on the business you intend to purchase, your collateral for the loan, and the means for you to pay the money back.

In securing business acquisition financing, there are some things you need to remember. One is to have a backup plan. It is better if you get approved by as many banks and lenders as possible, for these will be handy in situations when one backs out. Another consideration is to acquire adequate business purchase financing that covers operating costs. It is highly recommended to have a plan B in case the profit decreases. Lastly, see to it that you have a detailed business plan. Remember that this is one of the many bases of banks and lenders in approving your business financing loan.

The second option is equity financing, wherein you would agree to sell shares of your business to other investors. In choosing this option, you don’t have to worry about the risks in repaying debt, but you would be giving up partial ownership and control of your business.

Keys to successful business acquisition financing The most helpful way to secure business financing is to become inventive. You may try the easiest approach of all, which is to secure seller financing. In this deal, the seller will have to wait for a certain period of time to be fully paid off. The seller will also most likely offer assistance in ensuring your business’s profitability. However, not all sellers are willing to offer this type of setup. Even if you do find a willing seller, the asking price can go as high as 5 to 25 percent.

If a bank denies your loan request, you can try to apply for a small business administration loan or SBA loan. This type of loan offers good terms and requirements, but you won’t be getting additional funds from any other source.

There are many other possibilities to explore in securing financing for your business. Try asking for help from your family and friends to fund your business. You may also opt to draw money from your 401(k) plan. Contacting franchise financing companies is also another possible option. With a lot of choices available for you, acquiring financing for business is not difficult after all, don’t you agree?

Financing a Franchise Business? What You Need to Know to Obtain Finance for a Franchise

Can too much expert knowledge in financing a franchise business ever be a bad thing? We certainly don’t think so and we’ll show you how to obtain finance for a franchise business that you have chosen to purchase.

When talking to clients about franchise finance in Canada we generally talk about the Boy Scout motto. You will recall that their motto is ‘ BE PREPARED ‘ and that’s the total strategy around financing a franchise successful that you must adopt.

Getting the money to purchase your franchise of often the biggest worry of new entrepreneurs such as yourself. People search out franchising opportunities because they are essentially looking for a combination of opportunity and wealth – there is usually only one major obstacle to that road to success, it’s the funding for the acquisition of the franchise business.

If we had to summarize in a very simple and basic what you need to be successful in franchise financing we would boil it down to a few key issues. Want to know what they are? From our perspective it all comes down to a reasonable history of business or management experience, a decent personal financial profile – more about that one later, and access to the ‘ inside secret ‘ of franchise financing in Canada, which, you may be surprise to know, is the government of Canada!

Let’s circle back on those points – and as always it comes down and back to our Boy Scout motto – be prepared. We can see our client’s eyes rolling back now when we tell them we need a crisp business plan. That’s a key requirement of your ability to obtain finance for a franchise, simply because it’s the ‘ proof’, if you will, of your ability to understand and run your business properly. In that document you have info about yourself, the business you are purchasing, the industry you are in, and the financial performance you expect to achieve in your new role as business owner and entrepreneur.

From a lenders perspective financing a franchise business is all about one thing – getting paid back for the loan. So the lender will look at how you have structured the financial portion of your business plan to reflect ability to repay your franchise loan, as well as how much cash flow and working capital is left to pay yourself a salary and run your new business. Could anything make more sense than a properly crafted and positioned business plan – we don’t think so.

Your money – you have it, you want to keep it – don’t we all. However, whether it’s a franchise business or any business for that matter OPM never works – OPM is ‘ other people’s money’ and you can’t rely on 100% of outside financing to obtain finance for a franchise in Canada. So be prepared to invest anywhere from 25-50% of the purchase price into your acquisition. Coupled with that and this is critical, you must be able to demonstrate that you have run your personal and business affairs respectably from a credit perspective. Obtaining a copy of your credit report, in advance, by you, is strongly recommended.

And, oh yes, what about that Government Issue we mentioned. That’s one of the great secrets and tips we promised to reveal. Did you know that probably 90% or more of financing a franchise business in Canada revolves around a special loan program called the CSBF/BIL loan? It’s a federal program, and administered by financial institutions. Whats so great about it – limited personal guarantees, great rates, terms and structures.

Speak to an expert in franchise financing when you are looking to obtain finance for a franchise – seek out someone who is trusted, credible and experienced. Be prepared, and get ready to be successful.

Looking for Film Finance? Your Secret Weapon Is The Canadian Film Tax Credit!

We’re going to make a quick assumption here, and that’s that you are not a movie mogul in an international film studio! But we do think we know who you are – a producer or project owner looking to complete your film finance plan.

We’ll also make another educated guess – here goes: You have found out that the Canadian film tax credit system can finance anywhere from 30-45% of your project and that’s quite appealing!

Let’s examine the basics of the Canadian film tax credit and determine how it can assist you in financing your project. The Canadian government has made it very clear that it is committed to film (by the way we’re including television and animation here!) due to the revenue and cultural aspects of the entertainment industry.

So these tax credits can play an integral part in the overall financing part of the plan. But in talking to clients we make it very clear that the onus is still on yourself, and we know its not easy, to complete the rest of your financial plan.That is of course the remaining financing you need that it achieved by arranged equity, debt, pre-sales, etc – in effect completing the finance puzzle.

More often than not the tax credits we look at tend to be in Ontario and B.C., those provinces have historically been viewed as Hollywood North in film finance – but the reality is that if you can shoot or produce your project in some of the other Canadian provinces those tax credits become even more liberal depending on the geography you have chosen.

So how do you successful navigate the Canadian film tax credit maze? We personally don’t think its a maze, in fact its quite straight forward, but the reality is that when anyone associates a government program with funding it has a perception of being bureaucratic, slow, etc. That’s not necessarily the case with the film tax credit.

Lets ensure you have the basics, and quite frankly you can move to GO and collect 200$ simply by utilizing a core expert team consisting of a Canadian tax credit advisor. Together with your entertainment accountant and lawyer that advisor can fast track you to Canadian film tax credit success.

The process simply involves applying for a Production certificate that ensure your project is eligible based on your spend budget. Non- Canadian producers may even be surprised to know that you can apply on-line through the government portal to get your certificate. This is where having the right ‘ finance talent ‘ comes into play, because you want to maximize your credit to achieve the best qualification for the combined federal and provincial credit.

Can the Canadian film tax credit be used to actually finance your film, i.e. real money? Absolutely, positively. Working with a Canadian business financing advisor in this area will allow you to cash flow or monetize your credit. The capital, again, anywhere from 35% ++ of your project can be used to actually complete your production in combination with your other aforementioned sources of financing.

In summary, we are the first to recognize that film finance isn’t easy – but when an accredited partner – i.e. the Canadian government! is willing to step in and help you with 30-45%, or more of your entire budget our recommendation is simple – Take the offer.! Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing your film finance plan.