Once it’s clear that a business requires additional capital by way of Equipment Leasing, the funding source will require a list of the existing assets of the business to see if they are un-encumbered. If there are no un-encumbered assets, that pretty much kills the notion of Equipment Leasing.
Relevant assets (plus a Valuation Report) may include:
- Land
- Building
- Machinery
- Equipment
- Inventory
- Accounts receivables
Royalties, trademarks and goodwill are not included. This is because the funding source only considers those assets for which there is a ready market if the Borrower defaults.
Having evaluated the assets, a loan amount will be arrived at. Invariably, this is a percentage of the derived value of the assets
© 2007 Sanjeev Aaron Williams & Cashwerks All Rights Reserved
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