Archives 2017

Leasing of yellow machinery, a low-cost solution

If your business is in the process of expansion, you have achieved a new construction contractor you need to renew your yellow machinery, it is important that you know the options you have to make this change without affecting the financial health of your company.

Yellow machinery is a ‘heavy’ concept in every way: to own, operate, and maintain it resguardarla is one of the most significant costs for construction companies. However, without this type of equipment, they can not fulfill their main function, so it is important to have it in optimal condition and renew it.

The Rock & Dirt and Ritchie Bros companies highlight that some of the advantages of buying yellow machinery are:

Economical savings if you use machinery intensively and have several projects in operation at the same time
Disposition of the team at any time, no matter when a project is activated
When you sell it you can recover part of your investment
However, there are some disadvantages to investing in the machinery of this magnitude:

If your company’s profit margin is not enough, an investment of this magnitude reduces it even more
When you have your own equipment you must pay for storage, maintenance, and transportation from one location to another
Having machinery means having an asset that depreciates as time passes
Reduce your company’s cash flow and payment capacity
Machinery is one of the most depreciating fixed assets in construction companies. The depreciation of the assets of the construction companies in Mexico amounted to 16,362 million pesos (mdp) in 2014. Of this total, 60% (9,817 mdp) was represented by the machinery and equipment for construction, the rest for other assets, according to data from the 2015 Annual Survey of Construction Companies of the National Institute of Statistics and Geography (INEGI).

One of the best options that owners of construction companies have – regardless of their size – to use yellow machinery when they have a project is financial leasing, which is recommended under the following conditions:

You need the equipment for a long period, but you do not want to invest
You want to renew your equipment without compromising all your capital
In Mexico there is a wide range of equipment leasing by suppliers, however, there are financial companies that also offer this service with very favorable conditions. What is the difference of resorting to the latter?

The lease with a finance company allows the lessee to acquire the property at the end of the contract in exchange for a residual amount (the income contributed is taken into account).
It allows the tenant to rent equipment from different suppliers, either national or international.
If you need a team in the middle of your project and do not have the resources to obtain it, the financial leasing company provides the capital to dispose of the machinery.
This type of operation allows the construction companies to obtain tax benefits since the payment of the rent is considered a deductible expense.
If you are convinced to lease machinery by a financial company, do not forget that although generally, the suppliers take pains to offer new and reliable equipment, it is their responsibility and yours (of the tenant) to cover the breakdowns, maintenance, and other eventualities. That’s why it verifies that the supplier is trustworthy and offers you all the substitution guarantees.

How to access the lease?

Choose a provider
Request a quote
Go to the lessor and submit the quote
Choose a rental plan
Use the equipment
At the end of the contracted period, you decide if you buy the equipment or continue with the rent but again equipment
Remember that the best quick loans for students decision is the one that best suits your education.

Bankruptcy leasecredi interviews financial education student word

The Financial Education seen from the point of view of the technicians could often be complex to understand, obviously the experience makes us take for granted some things that could be important for anyone who wants to approach this matter, or to solve their own financial problems, both to make savings and then invest in own projects, travel or purchases of various kinds.

We then interviewed Carmen, a graduate in Political Science.

Hello, I’m Carmen, born in Cagliari in 1988. I’m a lover of travel, reading, and writing. This is why I have directed my studies in languages, graduating from Eleonora d’Arborea and doing study stays at a very young age at the universities of Cambridge and Reading. Being a curious person, independent and driven to make me my idea about the news that every day the media propose to me, I am also interested in the economic and legal field. I’m graduating in political science, international sector. It contains all those who are my interests in the above fields. Currently, I work as an insurance consultant. We take care of the life business and therefore of complementary social security, savings, protection and investments for individuals and companies.

Educating in finance is important because the period we are going through is complicated and uncertain and will be more and more. In the future, we will have less and less protection and certainty from a contributory and social security point of view. Educating in finance means encouraging ourselves to take care of our savings and of our future retirement in the first place because the state role will be increasingly reduced. In this Italy is lagging behind in Europe. The rest of the European countries already have this mentality with a percentage higher than 60% for supplementary pensions. In elementary school, it seems excessive to me to talk about Financial Education, but already starting from middle schools one could devote one hour to political and economic affairs integrated with the study of civic education in middle schools or the law and economics in high schools and reading and discussion of journalistic publications on the subject.

The primary advice that I can give is not to believe at first glance to everything we hear, to deepen the subject by relying on the work of professionals through free and personalized advice that are made available by us intermediaries.

How to solve the problems of the sector?

For this reason, what we have to face and try to disrupt every day is the distrust of possible clients that preclude any form of listening and opening. This is due to poor and bad information and to previous negative personal or indirect experiences. These episodes are now increasingly rare thanks to the service of qualified media and the willingness of people to keep abreast of the matter, but the majority of Italians have no basis on the subject of social security and insurance.

We often deal with business owners who do not receive adequate tax information from the professionals they rely on. This is also linked to a lack of collaboration between sectors of different but integrative specificities. For our part, we can provide our professionalism through an adequate survey on customer needs. The main advice that I can give is not to be limited to the information on probable insurance through targeted research on the history of the company, on the returns of products and not to disdain a personalized chat with no commitment with the operators of the sector.

Optimistic forecasts say that an employee born in the 80s will retire with about 50% of his last salary to 70 years (currently). This is one of the main reasons why financial education is important. The second could be to educate parents to create an accumulation plan that allows their children to be able to pay an important university course, a training course, a study trip abroad that opens them more opportunities in the workplace. Moreover, for freelancers and in general for non-employees, education is important to protect itself in case of permanent or temporary mobility at work. The professionals working in the insurance and financial field must have these scenarios in mind and know how to solve these fundamental needs. What needs to be done, avoiding unnecessary alarmism, is to start to be foresight, try to enter the perspective that we are now having to create privately a plan for a future pension, to renovate the house, pay your loan or the mortgage or protect our company- BankruptcySolutions. Every need can be satisfied in the social security field.