• Introducing Inventory Finance

    January 28, 2014 – A leading provider of small business financing has launched a new innovative financing solution. Catering specifically to retail businesses, manufacturers, dealers, and commercial suppliers Innovative Lease Services, Inc. (ILS), now offers Inventory Finance.

    The ILS Inventory Finance product is the solution for the 80% of businesses who are under-served by traditional banks;

    ▪ Businesses that need to maintain high levels of inventory

    ▪ Companies with a high inventory turnover

    ▪ Retailers or Distributors with seasonal cash flow fluctuations

    ▪ Manufacturers wishing to take advantage of raw-material volume discounts

    ▪ All Companies seeking to expand product lines and offerings What separates the ILS Inventory Finance program from other programs available in the market is the convenient and flexible payment arrangements. ILS offers the option of having the funds transferred directly into the business’ bank account, or we can pay the business’ inventory supplier directly. Best of all, the repayment terms match the business’ sales cycle, thus repayment occurs as revenues are received.

    “By providing Inventory loans to small retailers, manufacturers, and distributors, we are filling a much needed void left by the banks. The majority of businesses who are under-served by traditional bank lending now have a resource to help grow their businesses. Most importantly, we can deliver funds up to $250,000 within 3 business days of application. We are the only provider in the market that we know of who can support small businesses in this manner.” – Andrew Nere, CEO of ILS.

    For more Inventory Finance information visit the ILS Website or contact Innovative Lease Services, Inc. Marketing Coordinator, Angela Caraglio, by email angela@ilslease.com or phone 800.438.1470.

    Published by:
  • Innovative Lease Chatter

    The ILS Website has Undergone a Facelift

    Innovative Lease Services, Inc. Launches New Website and Introduces of New and Unique Inventory Financing Program for Small Businesses

    Carlsbad, California – January, 2014 – – Innovative Lease Services, Inc. (ILS), a leading provider of commercial equipment financing and working capital for businesses in the US and Canada, has announced the launch of their new and improved website. With a new streamlined responsive design, the ILS site offers easy access and readability on all mobile, tablets and desktop devices.

    Additionally, the site introduces a brand new product targeted specifically for those businesses with inventory financing needs; retail business, dealers, distributors, suppliers and manufacturers. The new and novel ILS Inventory Finance program provides financing for inventory through all sales cycles and seasonal demands.

    Andrew Nere, CEO of ILS adds, “With the addition of the new Inventory Financing program, ILS provides a much needed financing tool for American and Canadian Small Business owners. By providing Inventory loans to small retailers, manufacturers, and distributors we are filling a much needed void left by the banks. The 80% of businesses who are under served by traditional bank lending now have a resource to help grow their businesses.”

    The new site serves to act as resource for small business owners, helping them navigate the varied financing products available in the market. Each of the ILS programs are explained in detail along with their respective benefits. The quick application process ensures the customer’s ability to apply for the program they need in real time.

    For more information please contact Innovative Lease Services, Inc. Marketing Coordinator, Angela Caraglio by email angela@ilslease.com or call 800.438.1470.

    Published by:
  • ELFA Forecasts the Following Top 10 Equipment Acquisition Trends for 2014

    The Equipment Leasing and Finance Association (ELFA) which represents the $827 billion equipment finance sector, today revealed its Top 10 Equipment Acquisition Trends for 2014. Given U.S. businesses, nonprofits and government agencies will spend in excess of $1.5 trillion in capital goods or fixed business investment (including software) this year, financing more than half of those assets, these trends impact a significant portion of the U.S. economy. Businesses will need to consider a dynamic environment of economic growth, wider credit availability, and favorable interest rates in their equipment acquisition decision-making.

    1. Investment in equipment and software will reach an all-time high in 2014. As the U.S. economy and underlying economic fundamentals, including GDP, continue to improve, business investment is forecast to reach a record $1.5 trillion in 2014.

    2Equipment replacement demand will continue to drive investment. Stronger economic growth will boost businesses confidence and appetite for capital expenditures, but overall, equipment already in place can be used at a higher capacity. Until businesses find they need to expand their capacity to meet operational demands, their equipment investment will be in replacing existing aging or obsolete equipment.

    3. Demand for equipment financing will increase due to greater stability in the federal budgeting process. Businesses will enjoy a greater level of comfort than they have in recent years to make their equipment acquisition decisions for 2014. The two-year budget agreement passed by Congress reduces fiscal pressures and lessens the chance of a potential government shutdown, while a rising tide of economic growth will lift all boats. As equipment acquisitions increase, so will businesses demand to finance them. 

    4The global economy will play a part in the big picture impacting businesses’ equipment acquisition decisions. The lack of long-term breakout growth and expansion on in equipment acquisition has some of its causes beyond U.S. shores. External factors like the stagnant Eurozone, foreign oil prices and the cooling of a hot Chinese economy, which have combined to impede growth, will continue in 2014.

    5Rebounding of some industry sectors will spur varied equipment types. Growth in investment is forecast for numerous equipment types, some of which will be the result of increased activity in the housing and energy sectors. The rebounding housing industry will have spillover effects on equipment verticals, including construction as well as trucking and rail transportation to ship home building supplies. Manufacturers plans for billions of dollars in investments to take advantage of cheap, rapidly expanding U.S. supplies of oil and natural gas will expand production capacity for energy and downstream products, such as petrochemicals and plastics, and increase demand for industrial equipment.

    6. A majority of U.S. businesses will use some form of financing for equipment acquisition. In 2014, investment in plant, equipment and software in the United States is projected to reach $1.5 trillion, of which 57 percent ($860 billion) is expected to be financed through loans, leases and lines of credit, a slight uptick from 55 percent in 2013. In a continuing trend, seven out of 10 businesses will use at least one form of financing to acquire equipment.

    7. Credit market conditions will remain favorable for long-term equipment financing. In a continuing trend from last year, businesses will generally find an increasing credit supply as they consider equipment acquisitions.

    8. A low short-term interest rate environment will continue, while long-term rates will rise but remain below the historical average. Businesses that want to conserve cash and take advantage of the many other benefits of financing their equipment acquisitions can look forward to the prospect of continued low short-term interest rates until 2015. Although the Federal Reserve’s policy agenda for 2014 will likely result in a rise in long-term interest rates, inducing some companies to lock in lower rates, they will remain low enough by historical standards to keep financing an attractive option for acquiring equipment.

    9. Technology innovations will continue to improve the customer experience. While demand for software and technology equipment is expected to remain strong, equipment finance companies will use technology to optimize their delivery and fulfillment systems around customer service. They will meet a growing demand for cloud and mobile technology as well as access to real-time company data and business intelligence.

    10. Long-awaited changes to the lease accounting standard will continue to be debated. A new draft of proposed lease accounting changes issued by the Financial Accounting Standards Board and the International Accounting Standards Board issued in 2013 generated substantial opposition for being too burdensome and complex. As a result, the Boards will continue re-deliberations into 2014 and will conduct additional meetings to address concerns before changes are adopted.

    More Information
    For businesses that want to learn more about how they can incorporate equipment financing into their business strategies, and for informational resources about equipment financing, including a digital toolkit and Infographic, go to www.EquipmentFinanceAdvantage.org.

    For forecast data regarding equipment investment and capital spending in the United States, see the Equipment Leasing & Finance Foundations 2014 Equipment Leasing & Finance U.S. Economic Outlook at www.leasefoundation.org/IndRsrcs/EO/.

    About ELFA
    The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $827 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. For more information, please visit www.elfaonline.org.

    Published by:
  • Bone Chilling Weather and Slipping Sales

    Did the Polar Vortex put a big freeze on your businesses’ revenue? The big chill is leaving quite the impact on the southern and eastern areas of the United States. The subzero temperatures is putting a halt to Americans everyday routines. With record low temperatures, heavy snow fall and wind, people don’t and in some cases can’t, leave their homes. Many seem to believe the weather problem will be short lived, however this does not include the monetary effects.

    Effecting 200 million Americans, the predicted cost of damage estimates around $5 billion impact on the US economy. This number is including the cancelation of flights, workforce loss, repair of rusted pipes, insurance claims, road repairs, the list continues.

    Businesses have seen a drastic drop in sales since the start of the polar vortex due to the lack of consumer spending. Reported in the first week of January, New York has seen a 5.4% decrease in sales in the week ending January 4th. *(Source: (ICSC) and Goldman Sachs Weekly Chain Store Sales Index).

    The low temperatures have permanently damaged vehicles, power lines, and shut down businesses. Naming just a few industries impacted; retail shops, restaurants, construction, landscapers, schools, car sales, technical and delivery services all have to play some catch up. In addition, the current farming and agriculture industries have been effected which may continue over the course of the next year.

    Even though we are nearing the end of the Polar Vortex the impacts on businesses are not finished. Home gas prices the next few months will be higher, and the utility bills will cause consumers to continue to spend less through February.

    On a brighter note, some businesses have reaped the benefits of those staying inside. Energy companies are profiting the most. Cable companies have more customers renting movies, online retailers have experienced a spike in sales and food delivery companies have noticed a big increase in orders.

    How Your Business Can Bounce Back

    If your business was impacted by this, ILS has advice on how you can recover sales for the first half of January and further.

    -Disaster Planning (Make a plan in case of natural disaster). What is it that you see most important in recovering sales in any situation?

    • Increase inventory in stock, increase work staff to catch up on unfinished work, replace broken equipment etc.
    • Alternative methods to do business and make sales.
    • Determine your businesses sales shortage?
    • How much does your business need to play catch up?

    -Get funding. ILS can resolve your capital needs.

    • Working Capital Program – $5K to $250K available for any business related expense.
    • Equipment Financing – $5K to $5 million available for new or used equipment.

    -Take Action. Now that you have the tools to get back on your feet, reach out to your community and customers. Be creative and offer alternative methods.

    ILS is your lending hand in time of need. Don’t let this bump in the road effect your businesses goals and month end sales!

    Contact ILS to learn more. By Angela Caraglio

    Published by:
  • Out of Our Control – Planning for Disasters

    Planning for a Disaster

    As a business owner you learn to expect the unexpected. Although it is in your best interest to have something to fall back onto when something completely out of the ordinary takes place. Natural disasters have become seemingly more popular in the news and around the world. It has been called to our attention that no matter where one does business, IT can happen to you! In the past decade we have seen; floods, earthquakes, fires, mudslides, tornadoes, and hurricanes which have caused millions of dollars in damages to everything they touch. While we can’t control the weather, we may be able to lessen the impact of these instances if they are to happen to your business. Learn the basics in staying calm and preparing an emergency plan. 

    Emergency Plan Outline

    Use these steps to get started:

    • Get organized. Establish an employee(s) to draft the plan. 
    • Assume the worst. Assume that the physical facility that houses the business and all of its contents has been permanently destroyed. From that scenario, list each item that would be important to the business if salvaged and what must be recreated from scratch in order to continue. Typically, the most critical items are business records. Furniture, materials, and manuals usually can be replaced and are insured for their value.
    • Try to prevent the loss. Of those items on the list that should be salvaged, or must be recreated, determine if there are any alternatives that could have been pursued before the disaster to avoid a total loss. Alternatives may include:
      • keeping duplicate records at a different site
      • keeping backup equipment necessary to continue basic operations at a location other than the work site (perhaps a storage facility or, if possible, in your home)
      • storing critical information such as accounts receivable, client information, or outstanding billings in a safe and secure place such as a bank vault
    • Sweat the small stuff. In addition to planning alternatives, you should include the following in your plans:
      • Determine the adequacy of fire and disaster insurance.
      • Complete emergency evacuation planning, including periodic drills, emergency plans, special considerations for any employees with disabilities, and coordination with local emergency and fire authorities.
      • Establish a plan for an alternate work site during the emergency, including records, staff, and support such as telephone, equipment, and related support.
      • Specify under what circumstances a facility will be closed (such as bad weather), who makes the decision, how the decision is communicated, and whether the employees are compensated.
      • If your company operates 24 hours a day or provides a critical service, determine the plan for alternative electricity, water storage, and other routine public services.
      • Plan a public relations spokesperson’s responsibilities carefully and thoroughly (usually, that means you).
      • Have individuals with key responsibilities keep copies of the emergency plan at their homes in the event of an emergency.
      • Update the plan at least annually.
      • Determine if there are any local (usually industry-specific) groups that offer consulting, training, and reciprocal support in the area of disaster planning.
      • Train any employees periodically on fire prevention. There should be a minimum of two fire drills a year and frequent on-site self inspection and review.
      • Train at least one employee in emergency medical steps (such as CPR). 
    Published by:
  • Ready to Apply for Financing, but Don’t Know Where to Start? A FICO Score is a Must!

    Financing 101, Small Business owners need a Fico score in order to qualify for loans. In simple terms it is a measurement representing the credit-worthiness of a business and the likelihood the entity will pay off debt…….

    The FICO® Score is calculated from several different pieces of credit data in your credit report. This data is grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining how your FICO Score is calculated.

    Your FICO Score considers both positive and negative information in your credit report. Late payments will lower your FICO Score, but establishing or re-establishing a good track record of making payments on time will raise your score.

    How a FICO Score breaks down

    FICO credit score chart

    These percentages are based on the importance of the five categories for the general population. For particular groups—for example, people who have not been using credit long—the relative importance of these categories may be different.

    Importance of categories varies per person

    Your FICO credit score is calculated based on these five categories. For some groups, the importance of these categories may vary; for example, people who have not been using credit long will be factored differently than those with a longer credit history.

    The importance of any one factor in your credit score calculation depends on the overall information in your credit report. For some people, one factor may have a larger impact that it would for someone with a much different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your FICO® Score.

    Therefore, it’s impossible to measure the exact impact of a single factor in how your credit score is calculated without looking at your entire report. Even the levels of importance shown in the FICO Score chart are for the general population, and will be different for different credit profiles.

    Your FICO Score only looks at information in your credit report

    Your credit score is calculated from your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.

    What the FICO Score ignores?
    What are the minimum requirements to have a FICO Score?
    What’s in my credit report?

    Payment history (35%)

    The first thing any lender wants to know is whether you’ve paid past credit accounts on time. This is one of the most important factors in a FICO® Score.

    How is credit score calculated from payment history?

    Amounts owed (30%)

    Having credit accounts and owing money on them does not necessarily mean you are a high-risk borrower with a low FICO® Score.

    How is credit score calculated from amount owed?

    Length of credit history (15%)

    In general, a longer credit history will increase your FICO® Score. However, even people who haven’t been using credit long may have a high FICO Score, depending on how the rest of the credit report looks.

    Your FICO Score takes into account:

    • how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts
    • how long specific credit accounts have been established
    • how long it has been since you used certain accounts

    Community forums: Calculating Average Account Age

    Types of credit in use (10%)

    The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

    How is credit score calculated from types of credit in use?

    New credit (10%)

    Research shows that opening several credit accounts in a short period of time represents a greater risk – especially for people who don’t have a long credit history.

    visit www.myfico.com

    Published by: