Small Business Equipment Financing and Loans

Large industries often need several pieces of very expensive equipment in order to run their business effectively and efficiently. This equipment is often used in the manufacturing, restaurant, mechanical, construction, and transportation sectors. The upfront cost of business equipment can be very expensive and may break a small business that is still getting their bearings and working on making a profit. In many cases, the business needs this equipment in order to operate properly and make a profit, but the upfront cost of the equipment is usually very high. That’s why there are some great equipment financing and equipment loans available for businesses that need assistance with their purchases. Not only are equipment loans easier on the wallet, there are a great deal of other benefits to equipment financing. Some of those include tax write-offs, easier management of assets, and most importantly, a higher margin of cash flow to be spent on other expenses.

Getting equipment financing is much like getting financed for a car or home. The lender will offer you very flexible repayment options with a choice of repayment terms. In many cases you’ll be able to opt for loans with terms of up to 15 years. In general, this will depend on the amount of the loan you take out. Most high end and large-scale equipment can cost anywhere from $25,000 all the way up to $1 million or more. As a company it’s important to know what to look for when choosing equipment at the best price, and when shopping around for equipment loans. This way your business can be sure it is getting the lowest rates and easiest terms. Many companies specialize in equipment financing, so it’s best to contact several in order to find the loan that will suit you and your company best, as well as be able to fulfill your personalized equipment needs so you can do business effectively.

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How does a merchant cash advance work?

For every $1 borrowed the merchant repays $1.30 to $1.39 over a 4 to 6 month period. A small percentage of the merchant’s MasterCard and Visa transactions are deducted from the merchant account to offset the charges of the Cash Advance. Should the monthly processing be less than the calculated percentage holdback average, the weekly difference will be ACH'd from the business checking account.

View an example of a week's worth of Visa/MasterCard Sales and the resulting payments.
Cash Advance Amount is based on the average monthly MasterCard and Visa sales and the merchant’s need for capital, limited by the merchant’s ability to pay back the advance in no more than 6 months and no more than a 30% holdback percentage.

EXAMPLE: Merchant has average $10,000 monthly MC and V sales and needs to borrow $12,500 for capital improvements

Cash Advance Payback is calculated by multiplying the total Advance Amount by 1.30, then dividing by 6 [number of months to payback] to determine the monthly amount of MC and V receivables that need to be collected.

EXAMPLE: $12,500 X 1.30 = $16,250 (Payback Amount)÷ 6 (no. of months) = $2,708.33 (monthly payback)

Cash Advance Percentage [%] Holdback Rate is calculated on the Merchant’s monthly payback, divided by the average monthly MC and V sales. This percent is the reserve captured on each MC/V batch transaction.

EXAMPLE: $2,708.33 &divide $10,000 (avg. MC/V sales) X100 (to get percentage) = 28% (MC/V batch reserve)

Receiving Cash Advance Amount occurs 3 to 5 days after the terminal is installed and BCC confirms funds are flowing correctly. The Cash Advance funds are ACH'd to the Merchant's bank account.

Send Us Your Processing Statements for a FREE review and preliminary cash advance funding calculation. Our consultants will help you to determine if a Cash Advance is right for your business. There is no obligation.

Business Debt Consolidation

Many businesses find themselves getting into debts that they simply cannot handle. Not only does this happen to the average consumer, but companies often suffer from business debt as well. Fortunately, there are a great number of programs available that offer business debt consolidation. These programs will help you to assess what you as a business can afford in order to help satisfy your debtors, as well as help to work out a payment plan and possibly lower your business’ current interest rates. One of the most common problems with business debt is that the company ends up losing valuable assets and merchandise because they are forced to liquidate (sell these things for cash). Even bankruptcy can occur if they cannot settle their debts in a timely manner. With business debt consolidation, your assets are protected, saving you from the pain and embarrassment of forced liquidation.

Another plus when it comes to getting your business out of debt is the fact that by consolidating, all of these miscellaneous debts are combined into one lump sum. One simple, single monthly payment can be made, making accounting and keeping track of everything on the financial side much easier. In addition, business debt consolidation can allow business owners to rest easy and be able to spend more time on making important business decisions and deal with their daily operations. This can actually help your business grow, because you’re not using up valuable time talking to the bank, your accountant, or bill collectors. By consolidating debt, nothing is lost and everything remains in good standing, while you build a reputation of solid credit and honest repayment. In many cases, as hard as it may seem to believe, you may end up owing less over time than you would have originally when participating in business debt consolidation.