Laptop computers are popular. So are mobile phones. Unfortunately, they can also be costly. If you’re considering investing in a new laptop or cell phone, do your homework first. In some instances, it may be a wise decision to finance your purchase. At other times, paying cash is best. Learn the ins and outs of financing products such as laptops and mobile phones below.
Laptops or Cell Phones for Personal Use
If you’re planning to buy a laptop or cell phone for personal use, you’ll probably want all the latest features at the lowest cost. A mobile phone will typically be priced anywhere from $300 to $4,500, depending on its features, style, brand name, etc. A laptop computer is usually priced according to the amount of memory or disc space available, key features, pre-installed programs and the brand name. Laptops are priced anywhere from $1,000 to $10,000.
If purchasing a mobile phone or laptop that’s on the high end of the price scale, you’re looking at a fairly large investment. You may not have the cash on-hand at the date of purchase. When buying a notebook computer for personal use, consider the total purchase price, the interest rates that are available at your lending institution, and the number of years you will finance. Laptops can decrease in value quickly because computers are always changing – there’s always a new feature or type of computer on the market. In reality, your notebook computer could become obsolete within a year or two!
The same is true for cell phones. They tend to become obsolete quickly as well. On the other hand, paying a little more for a cell phone you know will enjoy for many years to come may be worth financing a higher amount.
For personal use, it is recommended to finance your mobile phone or laptop only if necessary, and at the lowest interest rate possible. You may be able to take advantage of a personal loan at your local bank or credit union. Finance companies tend to be much higher in interest. If you must pay high interest, be sure to lessen your finance payment period. You’ll pay much less interest by financing for two years instead of three.
Laptops or Cell Phones for Business Use
When buying products for business, financing can be a good thing. Sometimes, paying $5,000 cash is possible, but not wise. If you have $5,000 on-hand, you could use part of it as a down payment for your notebook computer or mobile phone. The remainder can be used to do more promotions for your business, thus, increasing your profits. Also, the finance charges and depreciation value of the laptop may be a helpful tax write-off at the year’s end! So by financing, you may be able to increase business profits, buy your much-needed equipment, and save on taxes!
Before financing products such as laptops or mobile phones, speak with your accountant to find out if it’s the right decision for you. The time of year, cost, interest rate and other factors will ultimately determine if financing will benefit or hurt your business.
Products like mobile phones and laptop computers are very useful for individuals and businesses. Consider the tips above before buying a laptop or cell phone to make your investment worthwhile!
By: Chris Robertson
Posts Tagged ‘Local Bank’
To Finance Or Not to Finance Laptops and Mobile Phones
March 8th, 2010Business Start-up Finance For Your New Venture
March 3rd, 2010
When it comes to starting your own business one of most important factors to take care of is your start-up business finance. There are many funding options open to you, with the main forms being categorised as either debt finance or equity finance.
It has been said that roughly 60 or 70% of all new business ventures call on their local bank as their first attempt to gain start-up finance. Gaining a bank loan to fund a business start-up is one form of debt finance. This debt finance comes in the form of a bank loan that typically has to be repaid at an agreed interest rate. The way in which banks usually agree to bank loans is by securing your loan against an asset. The way in which this works is if your business then fails to repay the loan, the bank can then claim the asset. So what exactly is this asset? An asset stands as usually a house/premises or equipment that is owned by your business.
The main problem with a bank loan is your company then becomes locked into a tight payment schedule that could cause problems for small businesses. There are also other forms of debt finance that are starting to prove just as popular with small business, such as credit cards and leasing. The term leasing refers to the borrowing of money to buy specific equipment/machinery. In this case small businesses borrow against the store sales.
All forms of debt finance means that you are borrowing against reserves rather then giving someone ownership of your shares. The main thing that you have to keep in mind when it comes to debt finance is finding the aspect of funding that is right for your business; there is however one flaw to this theory; what if no form of debt finance is right for your business? To answer this predicament I bring to your attention, equity finance.
Although the definition of equity finance slims down to pretty much being risk capital, it is the saviour of many small/new businesses who are either turned down for a bank loan or merely can’t keep up with the repayments.
Equity equals true risk capital as there is no guarantee that the investor will get there money back. The big advantage however is that the money that is invested into your business from equity finance never has to be repaid. Investors to your business are prepared for risk capital in return for a growth share of your business profit.
The investors behind equity finance give you the money that you need to get your business off the ground and to cover all aspects of your business start-up costs such as rent, the purchasing of equipment and staff wages as well as all of your utility bills for the first few months.
Whatever finance you decide to use for your business venture, make sure you make a realistic and informed decision based on your business needs. There is a lot to take into account and you need to ensure that you have all of your business information sorted before making any decisions.
By: Helen Cox
Evaluating a Finance Lender
February 1st, 2010
When most of us need some extra cash for an upcoming project, the first thing we think about is heading down to the local bank and getting a loan. While this may work just fine in some cases, you may not always get the best rate of interest or the most favorable repayment terms. In order to do that, you may have to investigate more than one finance lender. Here are some tips to help you properly evaluate potential lenders.
One of the first things you want to look at is stability. Banks usually have the upper hand on this one, since most of them have been around for many years and can demonstrate their stability simply by their ongoing presence in the area. Finance companies may not be able to demonstrate their stability in quite the same manner. If you are thinking of going with a finance company, do some digging into their background. You will want to know when the company started, at least some basic ideas of how they do business and also are they stable in their operations. You can get a lot of this information from the company itself, but you can also check with records available at the local court house to determine if this finance company is one you should consider doing business with.
Along with stability, you want to learn all you can about the reputation of the company. Ideally, you want one that has a number of happy customers. A good finance lender knows how to be honest with a client and will do everything they can to keep the customer happy, within the boundaries of the operating guidelines of the institution. If possible, talk with people who have done business with them before. Get their perceptions on such matters as how well they explained the terms of the loan, how easy it is to reach someone if a question came up, and also if the lenders were personable and still professional. All these factors come into play if you want to deal with a lender who will have your best interests at heart.
Finally, trust your own gut feeling. If your interview with a finance lender leaves something to be desired, then you may want to keep looking for another option. Not everyone is a perfect match, so it may just be that you would work better with someone else. Don’t allow yourself to be swayed into something that your instincts tell you is not the right deal for you. Consider your hunches as well as the data you can collect about the finance lender from other sources. In the long run, you will be much happier with your choice.
By: James Woodley
