At some point in any small, large, or online business, it will be necessary to upgrade, improve upon, or replace various pieces of equipment. This is where equipment
Medical professionals, in general, prefer leasing medical equipment or borrowing money from the bank in order to finance the purchase of their equipment. The decision regarding whether to buy or lease depends on the nature of the equipment. Generally, ownership is desired when the object under consideration is expected to appreciate in value. A purchase is justified in case of objects that depreciate, provided the buyer can recover the amount of money invested. Generally, any office equipment has a useful life of 7 years. Medical equipment too is depreciated over a period of 7 years. Considering the cost involved, the depreciation, and the chances of obsolescence, leasing it is a better opti
As a business owner, one of your primary goals will be to make a profit. However, there is no guarantee that this can happen that easily. Your business may realize a lower return on investment than you expected. It may actually experience a loss after you have paid all your expenses. The possibility of financial loss is called a risk.
While a business cannot totally eliminate all the risks of doing business, marketers can reduce and manage risks through careful planning. Risks are managed by using the best available marketing information, analyzing opportunities, and making decisions to balance risks with adequate monetary returns.
Lets take a closer look at each type of business risks and how it affects your business in general.
Economic risks. These occur from the changes in overall business conditions. These changes can include the amount or type of competition, changing consumer lifestyles, population changes, limited usefulness or stylishness of some products, product obsolescence, government regulation, inflation, or recession. Businesses that fail to change their products when competitors offer more features and benefits experience economic risk through lost sales. For instance, similar businesses in your area have offered customized bookmark printing and it generates more sales compared to ordinary bookmarks. If you dont conform to the trend, it would be very likely that your bookmark printing business is at risk unless you also offer what is on trend now in the market.
Consumer lifestyles and population changes are other economic risks facing modern businesses. More single-parent households, dual-income families, the aging of the baby boom generation, and the increasing number of singles delaying marriage all present potential risks for businesses that fail to adapt products to meet changing needs.
Also, changes in the general business environment caused by inflation or recession can present economic risks. For example, all businesses in an area experiencing high unemployment will suffer through reduced product sales.
Natural risks. These are risks resulting from natural causes that include floods, tornadoes, hurricanes, fires, lightning, droughts, earthquakes, and even unexpected changes in normal weather conditions. Some products depend on predictable weather conditions for success. For example, a hardware store in the Midwest that sells snow blowers will depend on a predictable season of heavy snow to sell their product. A mild or light snowfall during winter represents a natural risk to the business. Conversely, a dry summer or drought will affect the sales of lawnmowers. The sale of recreational products such as boats, snow skis, motorcycles, swimming pools, snowmobiles, and related clothing items are affected by weather conditions. These risks can spell financial ruin for a business.
Human risks. These are caused by human mistakes and the unpredictability of employees or customers. Some of the more common human mistakes are:
Customer or employee dishonesty- taking goods or money, shoplifting.
Employee carelessness- for example, mistakenly switches the design for the ordered bookmarks to another company that leads to reprinting of it.
Employee incompetence- for example lacking the skills to do the job well.
Customer or employee accidents- for example, a customer falls over merchandise left in the aisle, breaks an arm, and sues the store. Or an employee badly cuts his or her finger while creating a store display.
Employee illness- for example, becoming ill as a result of inhaling toxic fumes from a chemical cleaner used at work.
Customer non-payment of accounts- for example a customer pays for goods with a fraudulent check.
These are just some of the types of business risks that you should know to guard your business from failing.
The ins and outs of getting the best financing for your equipment
buying trip to IMTS 96.
Whether you go to IMTS 96 with your traditional sources of financing
locked up in "relationships" that have filled your plant with
equipment in the past, or whether you shop the show floor for new
sources of capital, several things are abundantly clear:
* Capital for machine tool acquisition is readily available;
* Interest rates are still relatively low;
* Competition for your business is at the highest levels in years;
* The decision to l
ROME Italian Prime Minister Matteo Renzi's government on Friday passed a decree to speed up the recovery of unpaid credit in a banking system saddled with billions of euros in bad loans.
Italy's lenders have some 360 billion euros ($410 billion) in bad loans on their books, which could take years to recoup, but the decree aims to accelerate the process in the future.
"This will reduce the time it takes to recoup credit from six to eight years to six to eight months," Renzi told reporters after the decree was passed.
"This decree aims to resolve... definitively
We've seen it all too often: a consumer with bad credit goes to a dealership and is welcomed with open arms. He's urged to sign the papers that day and take the car home immediately.
But that giddy drive home is only Part One of his car-buying odyssey.
Part Two comes a few days or weeks later when the first payment is due. The consumer gets a phone call. The financing has fallen through because of the consumer's poor credit, the dealer says. The consumer is told to return the car or come in for further negotiations.
Like a yo-yo that's stretched out and snapped back, the embarrassed shopper finds himself back at the dealership and sometimes at a considerable disadvantage.
He's already put down a deposit and fallen in love with the car. He's said goodbye to his trade-in. At this point, it's possible for a car dealer to demand a higher down payment, require new, worse financing terms or steer him toward a cheaper, less desirable car.
The ABC News Fixer has heard of dealers who also tack on charges for the consumer's use of the car before the financing fell through.
Bad credit provides the string for this yo-yo. Consumers should be wary of offers promising that anyone can get financing, even people with bad credit or no credit. These can leave them vulnerable to sky-high loan terms or a yo-yo.
How can you avoid the yo-yo?
Get your credit report and credit score. Then talk to your bank or credit union before you start car shopping. That way you'll know exactly what you can afford and you won't have to rely on the dealer for financing.
If you have a trade-in, try to sell it on your own. At the dealership, you'll want to focus on one thing, and that's the price of the car you're about to buy. Adding a trade-in transaction will only muddy the waters. If you owe more on your trade-in than what it's worth, that's called negative equity, and you should try to pay down that loan before getting a different car. You definitely don't want the dealer to roll that old debt into your new loan.
Even if it's slow going, read every document. Don't rely on verbal promises.
Don't just look at the monthly payments; consider the entire cost to you over the length of the loan.
If you get your loan through the dealership, make sure you ask whether the financing is complete or the sale conditional on getting financing -- before you drive away.
And remember: Despite what you may have heard, there is no three-day right to back out of a vehicle purchase.
For more tips on buying a used car, CLICK HERE.
Got a consumer problem? The ABC News Fixer may be able to help. Click here to submit your problem online. Letters are edited for length and clarity.
How to finance equipment with bad credit: equipment financing is possible even for those prospective clients who do not have good credit ratings.