01 15 2016

Equipment Financing and Leasing for Home Builders

01 15 2016

How Small Business Home Builders Benefit From Equipment Leasing And Financing

No matter what industry you’re operating in, chances are, as a small business owner you can take advantage of utilizing leased or financed equipment. Each sector must deal with its own obstacles and cash flow issues, which are unique and vary between every industry, but one thing remains consistent throughout all the various sectors, which is that just about every business operating within any of these industries can benefit from equipment leasing or financing.

As Construction Dive noted, the government recently redefined the size standards that determine how small a business can be to qualify as a small business. While the clarification of the company sizes varied from one industry to the next, and sometimes even within a particular sector, the SBA provided concrete quantifiers to make this determination, either based on revenue amount or the number of paid employees working for a particular company.

Home builders as small businesses

According to the National Association of Home Builders, using data from the most recent Economic Census, the association was able to determine that the vast majority of companies operating in the residential housing market are small businesses, which account for more than 81 percent of home builders and specialty contractors registered as self-employed independent contractors. Even a majority of those companies with a paid staff still constitute a small business, according to the report, as approximately 75 percent of specialty trade contractors and roughly 66 percent of home builders generate less than $1 million in annual business receipts.

As small business operations, managers and executives must be on alert for any ways to cut overhead and boost revenue. With more streamlined enterprises and fewer expenses, these independent contractors and small firms can hire more workers, expand into new markets and, ultimately, boost profits. However, locating the right course of action can sometimes be a trial-and-error process, which means every attempt to boost operations can potentially leave a trail of mistakes in your wake.

The benefits of leasing or financing equipment

There are several routes executives and small business owners can take when they want to cut overhead to boost profits. They can choose to cut back on inventory storage, trim the workforce or reduce marketing expenditures. However, each of these strategies can potentially be ineffective, thereby creating barriers to success, which can ultimately weaken the enterprise.

Fortunately, there are other ways small business owners in the residential construction market can reduce costly overhead expenditures and still optimize efficiency. One of the most effective to accomplish this careful balancing act between working capital inflow and outflow is for independent contractors to take advantage of leasing equipment for all of their construction needs. By leasing equipment, small business owners gain access to a wide array of technology and machinery at a reasonable monthly cost. Leasing construction equipment eliminates the need for independent contractors to gather up all the full price of this machinery, and instead it allows these individuals to create a payment plan that best suits their business model, based off previous and anticipated revenue streams.

In addition, leasing equipment provides small business owners with the latest and most up-to-date technology available, which eliminates the need for contractors to use old, ineffective machinery and helps owners gain that crucial competitive edge. Not only does leasing equipment give owners access to cutting-edge machinery, but in many instances, the leasing company will also include training courses for how to operate any complicated equipment. This eliminates costly downtime and ensures all employees are operating the machinery with the same knowledge base, which also reduces the chances of breaking or improperly using the equipment.


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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.


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By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.