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Retain
Ownership. Instead of raising funds by selling
an interest in your company to an investor, you retain the
current ownership of your company. The lender is only entitled
to an interest return on its commercial loan, not a percentage
of the profits or a share in the company that an investor
would expect.
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Financial
Flexibility. The proceeds from the commercial
loan can be used for almost any purpose including paying
off current debt to avoid higher interest rates, short repayment
term, or pending balloon payment. A loan for commercial
use also allows you to preserve your cash and working capital.
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Better
Cash Flow. A loan gives you access to capital
with minimal up-front payments and the flexibility to design
a loan schedule that suits your needs. You can organize
your loan schedule to match your payments with the projected
cash flows from the proceeds of the funds this will help
you minimise the drain on your working capital.
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Borrower
is legal owner of equipment.
If you decided to take a commercial loan against your equipment,
unlike some other forms of financing you remain the legal
owner of the equipment.
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Maximize
Financial Leverage.Normally you can use your
refinance most of your assets, real estate, commercial equipment
and vehicles, to arrange for a commercial
mortgage or loan and may free up cash flow for other
pressing needs.
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Simplified
cash flow management Loan schedules are preset, making cash management more predictable.
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Tax
advantage. Interest payments on your loan are
tax deductible and are made with pre-tax money. Purchases
financed with profits, in contrast, are made with after-tax
money
