An Investment in Your Future

Heavy Equipment Leasing For Farmers

Posted by on Jan 22, 2015 in Uncategorized | 0 comments

If your farm requires the use of trucks, tractors, planters, or other specialized machinery used in farming, you may wonder how you’ll ever manage to get your hands on these essential items. Unless you have huge amounts of startup capital that can be budgeted toward such purchases, you’ll probably need to lease your heavy equipment instead. This is a common practice that has helped many enterprises grow and thrive while controlling expenses. Here are some of the basic concepts you’ll need to know before you leap into leasing. Types of Heavy Equipment Leases You’ll find that you have several heavy equipment leasing methods to choose from. Your final decision will be influenced by the type of equipment you’re leasing and your long-term plans for using it. The principal categories of heavy equipment lease include: Fair market value lease – This is the most flexible and common type of lease agreement, in which you can either keep using the equipment, return it, or upgrade it to a different item at the end of the lease term. This agreement makes the most sense if you’ll be subjecting the equipment to heavy use, such as a truck used to haul fertilizer short distances on a daily basis.  Wrap lease – This is a form of consolidation loan. If you’ll be needing additional equipment down the road, you can add it onto your current equipment lease and make a single larger payment for all the covered items instead of keeping up with multiple monthly payments. Wrap leases make a lot of sense if you’re starting with small farm but want to build it into a large one in future years. Dollar buyout – This kind of “rent to own” lease is about as straightforward as they come — you make all your payments on time, and then when the lease is over you buy the equipment for a dollar. This option is a good one when you want to have your own fleet of threshers, tractors, or diesel trucks, but simply can’t afford to purchase all those items up front. Sale-leaseback transaction – A sale-leaseback is exactly what it sounds like. If your capital is tied up in heavy equipment that you own, you can sell the equipment to a buyer and then lease it back under whatever terms you choose at the time of the agreement. This is a sensible option when you need funding but can’t get an affordable loan from the bank. Leasing vs. Renting Of course you could also rent that farm equipment instead of buying, so why shouldn’t you? If you only need a piece of specialized equipment once in a great while (such as a combine harvester when it’s time to bring in the crops), or if you want to make sure the owner of the equipment is stuck with all the maintenance expenses, then renting is indeed a smart way to go. The great advantage of leasing is the fact that you have the option of eventually becoming the sole owner of the equipment, which allows you to build your tangible assets. If you come into full ownership through leasing, you’ll also be free to sell that harvester to someone else and purchase a new one for future harvest seasons. Tax Considerations In some situations leasing...

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4 Tips For Marrying Someone With Debt

Posted by on Jan 14, 2015 in Uncategorized | 0 comments

You’ve met the love of your life and can’t wait to get married and share your future with them. Unfortunately, in addition to your partner’s many wonderful qualities, they also have a lot of debt and perhaps even bad credit. While your significant other’s financial difficulties shouldn’t necessarily stop you from marrying them, it is definitely worthwhile to come up with a plan for handling the situation before you get married. With these four tips, you and your betrothed will be able to tackle their debt situation with minimal stress. Have an Honest Discussion In order to best deal with your partner’s debt, it’s critical to first sit down and have an honest heart-to-heart. Try to approach this conversation in a loving, non-judging manner, so that your partner doesn’t feel attacked. The goal of the discussion should be to honestly assess your partner’s debt and begin to come up with a plan for how the two of you will deal with it. Important facts to include in the discussion include debt amounts, interest rates, both of your credit scores. You will most likely need your partner to gather their bills and credit report, and you will also want to take careful notes. It’s also a good idea to discuss your financial goals at this time. Go to Credit Counselling with Your Partner Once you have an accurate idea of your partner’s debt, the two of you can meet with a credit counselor. A credit counselling specialist can help your partner (or the two of you) come up with an effective debt repayment plan. Credit counsellors can also sometimes work directly with creditors to reduce payments or interest,  or even eliminate some of the unpaid debt entirely through debt settlements. Determine How Much You Will Help While you are most likely not legally liable for debt your partner acquired before your marriage, you may still wish to help them pay it off, especially if you are in the financial position to easily do so. By helping them to pay off their debts, you will demonstrate a high degree of commitment to your shared future. You will also help yourself in the long run, as getting your partner’s financial situation in better shape will help the two of you get approved for home or other joint loans in the future. Even if you’re unable or unwilling to help pay off their debts, you can still play a role. If you’re generally better with your finances than your significant other is, you may both agree that you should be the one to “hold the purse strings” or manage your finances as a couple. If your partner is undisciplined with credit cards, they may wish for you to be the one to hold onto the physical cards so that they won’t be tempted to charge things unnecessarily. Avoid Future Bad Debt Now that you and your partner have a handle on their debt, it’s imperative to avoid bad debt moving forward. This is especially credit for you, as you will be liable for (and your credit score will be affected by) any joint credit accounts or loans you open together as a married couple. Do your best to avoid taking on any major new debts until your partner’s old debts are under control,...

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3 Ways A Car Loan Boosts Your Credit Score

Posted by on Jan 6, 2015 in Uncategorized | 0 comments

If you have a low credit score (or no credit score at all), your chances of obtaining financing diminishes. Improving your credit score sounds complicated, but one way to get your credit record back on track is with a car loan. 1. You Need Both Revolving Debt and Installment Debt Credit reports contain two basic types of financial accounts: revolving debt and installment debt. Revolving debt refers to credit cards, which make funds available over and over as previous balances are paid, while installment debts include most types of loans, from auto loans to home mortgages. As of 2009, credit reporting agencies give weight to a consumer’s ability to balance both revolving and installment debt. It shows the consumer can handle numerous financial obligations at the same time—as long as those accounts are satisfied with regular, on-time payments. If you are trying to boost your credit score with credit cards alone, you might have an uphill battle. This is especially true if you only qualify for secured credit cards, which require an up-front deposit and work more like debit cards than extensions of credit. To improve your credit score with installment debt: Obtain a bad credit car loan if your score is insufficient to obtain a regular loan Pay off the balance as quickly as possible—never miss a payment or send one late Open a revolving account (such as a credit card) at the same time 2. You Need to Establish a Credit History According to FICO, credit history makes up 15% of your credit score and payment history accounts for 35%. You cannot develop either aspect of your credit report without some type of loan or line of credit. It might seem like a slow process, but you must start somewhere. Obtaining and paying off car loans will establish history with the credit bureaus and allow you to build your credit score over time. Not only that, but one auto loan can lead to subsequent loans as long as you fulfill your end of the bargain. When you decide you need a new car, it becomes easier to gain approval for financing, which means fewer financial headaches. To maintain a positive credit history: Avoid closing accounts, such as credit cards Only borrow what you can pay back based on the terms of the loan Read more and review your credit report annually to evaluate your progress 3. Satisfied Loans Stay on Your Report for at Least Seven Years If you are attempting to repair bad credit, you know that lingering delinquencies can hurt your ability to obtain financing. However, the opposite is also true: positive information remains on your credit report for a minimum of seven years—and sometimes forever. Each check mark in the “plus” column on your credit report makes you a more attractive risk when lenders evaluate your applications for car loans, mortgages, and other accounts. Since positive information often remains on your report for longer periods, it is always a good thing. To ensure a consistent climb from bad credit to good credit: Ask the lender whether they will report your loan information to the credit bureaus Keep records of all payments to ensure accuracy on your report Avoid requesting new loans until the old ones are paid off The best way to handle loans...

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