Your fleet of vehicles is a very important part of your business and as such, should be considered to be an asset which is to be taken care of regularly. Although it is a good idea to keep your fleet up and running at any given time, there are also going to be times when problems occur and repairs are going to be necessary. When that time comes, you may consider purchasing a different vehicle as it may end up saving you money in the long run. Although new vehicles are available, purchasing used trucks and cargo vans for your business provides you with more benefits. Why is that the case?
One of the first things that you should consider when purchasing used cargo vans for sale or even used utility trucks is the fact that they are going to cost you less money up front (Source: Hengehold Trucks Used Cargo Vans For Sale). When you purchase a new vehicle and drive it off of the car lot, it instantly depreciates but that is not the case with a used vehicle. In addition, you can purchase a relatively new vehicle that is used and get a much lower price than what you would pay for one that was brand-new, even though there are only limited miles on it.
Another benefit of purchasing used cargo vans or used box vans is the fact that they have proven themselves as to whether they are reliable. You should take a close look at the vehicle history, checking to see what kind of services were provided for it and the schedule with which they were provided. You should also look for anything in the history of the vehicle which would end up causing you problems. As long as it has a clean history, it will benefit you in numerous ways.
Lending, by its nature, is a risky business. During origination, risk is managed through the underwriting process. That is, the borrower’s income, assets, and creditworthiness are carefully considered to determine the level of risk and price the loan if the level of risk is acceptable and the loan is approved. As soon as loans are originated, they become part of a lender’s loan portfolio.
While a given loan may initially be considered a low risk loan, it becomes part of a larger collection. If the portfolio is too heavily weighted with similar loans, that in itself could be considered risky. For example, if a lender has too many loans issued to employees of the XYZ company, what happens if XYZ lays off half of its local workforce? Those financially stressed former workers will have a tough time making their mortgage payments. (Source: LoanLogics Mortgage Software)
In order to reduce risk in a loan portfolio, loan portfolio managers must regularly conduct loan and portfolio reviews to assess the overall health of the loan portfolio. Numerous tools can be used to analyze and manage concentrations and risks inherent within these concentrations. For example, data visualization and dashboard tools provide you with a highly visual, real time snapshot of various loan portfolio metrics such as:
- Borrower risk
- Collateral risk
- Market risk
- Concentration risk
- Geographic risk
You can even evaluate trends on both the loan-level and the portfolio level. For example, are the FICO scores of your borrowers decreasing? This could be an indicator that the risk to your portfolio has increased over time.
To reduce loan portfolio risk, you first need to be aware of the risks it currently faces. Risk levels can change over time, making it important to regularly assess the health of the portfolio to make better loan decisions. Use loan risk analytical tools and real time dashboards to spot trends, analyze risks, and forecast your portfolio’s risk of delinquency, default, prepayment, and more.
There are several ways to learn how to buy a small business. If you happen to be immensely lucky, you may have an older relative who wants to sell one to you. You can also browse online and newspaper periodicals that specialize in displaying small businesses for sale. However, not all businesses show up in public listings. Often, a sale has to be handled by a certified business broker to keep it somewhat confidential before the actual sale is made. Either way, you will need to identify potential businesses up for sale and arrange financing. You will need to have your own finances in order before you can make a bid on a business.
The nice thing about having a relative who has a small business for sale is that they often can be persuaded to finance the sale or to flexible buying terms. Business owners have different reasons for selling, and when one is simply selling to retire or pass on a business to a family member, it means they will try to work out a deal with you. If you don’t have much cash or need help financing, this is the ideal way to go. Otherwise, you may have to look into Small Business Administration loans for small businesses or conventional bank lending to finance your business purchase. If trying to get a loan with a banker, be prepared to put up collateral (maybe even your house) or personal guarantees to secure the loan. There’s no reason to make an offer that will fall through because you haven’t worked out financing.
Make a Solid Offer
You will need to research a company to understand what its true value is, taking into account any distressed conditions of the sale. If a company is losing money, it should obviously not be sold at the same value as a profitable company. Make an offer that is reasonable, but not excessive. Don’t underbid, if you want to be taken seriously. If the offer is accepted, you’re on your way to owning the business. If not, then either renegotiate or cancel the offer and move on. There are always other businesses out there that might end up being a better fit when all is said and done.