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Are you in need of quick cash but don’t want to take out a high-interest loan? Look no further than your paid-up property. That’s right, by unlocking the equity in your home or other real estate investment through an equity release, you can access short-term loans at much lower rates and with more flexible terms. In this post, we’ll go over everything you need to know about using your property’s equity to get the funds you need for whatever life throws your way. So whether it’s funding a business venture or covering unexpected expenses, read on to find out how to make your paid-up property work for you!
What is an equity release?
An equity release is a way of accessing the cash in your property without having to sell up and move out. With an equity release loan, you can borrow money against the value of your home while still living there. The loan is repaid when you die or move into long-term care, at which point your house is sold to repay the debt.
Equity release can be a useful way to supplement your income in retirement or to pay for one-off expenses such as home improvements or medical bills. However, it is important to consider the risks carefully before taking out an equity release loan. These include the risk that you may not be able to afford the repayments if interest rates rise, that your estate may be worth less than you owe if house prices fall, and that you may need to move if you become unable to meet the repayments.
How can I maximise my property equity release?
If you’re a homeowner, you may be able to use your paid-up property as security for a short-term loan – known as equity release. This could give you access to cash that can be used for any purpose, whether it’s home improvements, paying off debts or supplementing your income in retirement.
To make the most of your equity release, it’s important to understand how it works and what options are available to you. Here are some key things to consider:
– How much equity do you have in your property? This will determine how much money you can potentially borrow.
– What are the interest rates on equity release products? Make sure you compare rates from different providers to get the best deal.
– What are the repayment terms? Some equity release products require repayments to be made after a certain period of time, while others allow you to defer repayments until the end of the loan term or even until after your death.
– What are the fees involved? There may be fees for taking out an equity release product, so make sure you factor this into your decision.
By understanding how equity release works and considering all of your options carefully, you can make sure that you maximise your property equity and get access to the cash you need.
Conclusion
Unlocking the value of your paid-up property is a great way to get access to cash quickly and easily. It can be used as an alternative source of income or to tide you over during difficult financial times. Before proceeding, however, it’s important that you understand all the pros and cons associated with taking out a short-term loan based on equity in your home. Once you have weighed up these factors carefully, if you decide that this is the right move for you – make sure that you shop around for the best deal possible so that you don’t end up paying more than necessary.
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If your business has received a large purchase order but lacks the funds to fulfill it, purchase order funding may be the solution for your business. This financing option allows you to access the capital you need to complete the order and grow your business. Learn more about the benefits of purchase order funding and how it can help your business succeed.
What is Purchase Order Funding?
Purchase order funding is a type of financing that provides businesses with the capital they need to fulfill large purchase orders. This type of funding is typically used by businesses that lack the cash flow or credit to fulfill orders on their own. With purchase order funding, a lender will provide the necessary funds to pay suppliers and manufacturers, allowing the business to complete the order and generate revenue. In exchange, the lender will receive a percentage of the profits from the completed order.
How Does Purchase Order Funding Work?
Purchase order funding works by providing businesses with the necessary capital to fulfill large purchase orders or compete for tenders. The lender will typically pay the supplier or manufacturer directly, allowing the business to receive the goods needed to complete the order. Once the order is fulfilled and the customer pays, the lender will receive a percentage of the profits from the completed order. This type of financing is beneficial for businesses that lack the cash flow or credit to fulfill large orders on their own, allowing them to take on more business and generate more revenue.
Benefits of Using Purchase Order Funding
There are several benefits to using purchase order funding for your business.
- First and foremost, it allows you to take on larger orders that you may not have been able to fulfill otherwise. This can help you grow your business and increase revenue.
- Additionally, since the lender pays the supplier directly, you don’t have to worry about coming up with the cash to pay for the goods upfront. This can help improve your cash flow and reduce the risk of running out of money.
- Since the lender only receives a percentage of the profits from the completed order, you don’t have to worry about making fixed loan payments. This can help reduce financial stress and allow you to focus on growing your business.
- Another benefit of using purchase order funding is that it can help improve your credit score. By taking on larger orders and fulfilling them successfully, you can establish a positive credit history and build trust with lenders. This can make it easier to secure financing in the future, whether it’s for purchase order funding or other types of loans.
- Additionally, since the lender is taking on some of the risk by paying the supplier directly, they may be more willing to work with businesses that have less-than-perfect credit scores.
Overall, purchase order funding can be a valuable tool for businesses looking to grow and expand their operations.
Qualifying for Purchase Order Funding
In order to qualify for purchase order funding, your business must have a purchase order from a creditworthy customer. The lender will also consider the creditworthiness of your supplier and the profitability of the order. Additionally, your business must have a track record of fulfilling orders on time and managing cash flow effectively. It’s important to note that purchase order funding is not a long-term financing solution and is typically used for short-term needs.
Choosing the Right Purchase Order Funding Company
When choosing a purchase order funding provider, it’s important to consider their experience in your industry, their reputation and their fees and terms. Look for a provider that has experience working with businesses similar to yours and has a track record of success. We have been in the industry for over 10 years and have helped over 30000 business owners secure short-term finance for their businesses. We would love to be a part of your journey. We source multiple quotes from a pool of accredited lenders to provide you with the best possible rates. Apply for purchase order funding now and let’s grow your business together.
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A quick introduction to solar equipment leasing
Understand the pros and cons of solar equipment leasing
While the upfront cost of solar panels may be too much for some homeowners, the potential benefits are worth it. Going solar can increase home value by 4%, and save you thousands in energy costs. However, giving up ownership means giving up a share of your profits from going solar. Some people find it more advantageous to instead lease their panels, rather than buy them outright. Here are six pros and cons of leasing solar panels so that you can decide whether this is a good investment for your home.
Understand how solar panel leasing works
Solar panel leases provide the opportunity for people in solar-friendly jurisdictions to produce their own electricity without investing their capital. You just pay for it according to a monthly agreement, and there are many pros of this sort of lease that make the cons nearly negligible.
The Pros of Solar Equipment Leasing
There are many benefits to renting, as well as good reasons for leasing. Building tenants often seek out a lease option due to the flexibility and convenience it can provide, especially if the tenant does not enjoy a high credit score or has no collateral to apply for a business loan to cover the upfront costs.
Benefits of Solar Leasing
- Avoiding Installation Costs
The average cost of solar installations for a business start at around R500k for a small system, however, the price will fluctuate depending on how much energy your business consumes.
If you don’t want to make a large upfront investment in solar panels, you can instead pay for their use over time.
- Avoid Maintenance Costs
Some leasing programs include free installation, maintenance, monitoring, and warranties on the rented panels to make it easy for business owners to enjoy the benefits of solar energy without the above hassles.
Your solar panel efficacy is guaranteed through your lease agreement. When you own solar panels, you will notice higher repair costs once the warranties expire due to prolonged wear and tear.
Potential cons to solar leasing are harder to identify than the benefits. As with any major decision, it is important to have all your bases covered before signing on the dotted line.
- It can be costlier
Though you can save money when you lease a solar panel instead of buying one, renting an asset means you’ll pay more over time. The best way to enjoy the most savings with solar panels is to buy it outright. But if that is going to seriously impact your cash flow or you don’t plan on owning the premises past the end of the rental period, it does not make financial sense to buy the panels outright so therefore leasing is the better option.
It can take up to 25 years to pay off a solar power installation and enjoy completely free electricity, whereas with solar leasing, cheaper tariffs are realised much faster.
- Tax Rebate
Buying a solar panel system outright does provide more tax incentives for your business but leasing can also be a tax write off because it is a tax deductible expense.
- Can Potentially Impact Resale Value of Business Premises
Leases are long-term obligations, so regular prospective property buyers might not like a business property because they don’t want a lease. However, our flexible equipment rental agreements allow for flexible rental periods and terms, so if you are planning to sell and the contract period is ending, the system can be removed if the new owner is not interested in continuing the lease agreement.
- Missing out on the ROI
Buying solar panels will help you make a return on your investment when you sell the property. However, the benefits of enjoying solar power maintenance free greatly outweighs this small drawback.
The major benefits of solar leasing certainly outweigh the cons, especially if your business does not have the capital to invest in the upfront costs of solar leasing or you have multiple premises that would make solar ownership unfeasible. Apply for solar equipment finance on our website.
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Car dealerships in the 21st century have to promote and market their services to a variety of audiences in order to stay competitive. As the digital age has increased the use of technology, car dealerships have had to adapt to the needs of their customers.
Pre-owned Car Dealership Marketing Ideas
When marketing a used-car dealership, you need to think outside the box but at the same time, be logical about your approach.
- Have a strong web presence. This is where most car buyers start their search. Make sure your website is easy to navigate, your inventory is up to date, and you have a strong online presence across social mediaplatforms.
- Use targeted advertising. Use targeted ads to reach potential car buyers who are looking for a specific type of vehicle.
- Get involved in the community. Sponsoring local events and partnering with local organizations can help expose your dealership to potential car buyers.
- Offer incentives. Run promotions and offer incentives (like a free oil change with a car purchase, for example) to get people interested in buying a car from your dealership.
- Train your sales staff. Make sure your sal
Today, more and more customers are turning to the internet to research and buy products and services. This is especially true for big ticket items like cars. In order to compete in the online car market, dealers need to have a strong online presence, including a well-optimized website and a robust social media strategy.
One of the most important elements of a successful online car marketing strategy is customer reviews. Online reviews are a powerful tool that can help build trust with potential customers. In fact, according to a study by BrightLocal, 88 percent of consumers trust online reviews as much as personal recommendations.
There are a few things dealers can do to encourage customers to write online reviews:
-Include a request for reviews on your website and in your email signature
-Make it easy for customers to write reviews by providing a link to your review page
-Thank customers for writing reviews and share the positive reviews on your website and social media pages
By taking these simple steps, dealers can generate more online reviews and build trust with potential customers. es staff is knowledgeable about the vehicles you sell and can answer any questions potential buyers may have.
1. Think Local
Used car dealerships should create marketing campaigns that focuses on their specific geographic area. This could include radio ads, billboards, lamp post flyers, adverts in community magazines and handing out flyers at the local car washes, tyre fitment centres and so forth.
It can also be worthwhile to get involved in the local community and start making a name for yourself. Used car dealerships should sponsor local events to create positive associations with the dealership and increase local awareness.
2. Make It Incredibly Easy for People to Find You
First step to reaching your target market is by setting up an optimised Google My Business listing. It is worth hiring a professional SEO specialist to do this on your behalf. A Google My Business listing will help people searching for a used car dealership in their area find you.
You should also have a website that includes clear directions on how to find you and better still a Google Maps pin people can simply click to be directed straight to you on their journey. Make sure your website is mobile-friendly and not important text like your address and contact details is obscured.
3. Develop an Omnichannel Ad Strategy
Used car dealerships should develop an omnichannel ad strategy to connect with potential customers. This should include a mix of digital and traditional marketing methods, such as social media marketing, radio ads, print ads and outdoor advertising.
Used car dealerships should also focus on SEO and online advertising. This can include paid search, social media and remarketing. Additionally, dealerships should consider developing a mobile app to connect with customers on the go, especially if you offer an online catalogue people can browse through.
4. Build Trust with Customer Reviews
When it comes to used car dealerships, word-of-mouth is key. In order to get people to trust you, you need to have a lot of positive reviews from previous customers. This will show that you’re a reputable business that people can trust. Online reviews are a powerful tool that can help build trust with potential customers. In fact, according to a study by BrightLocal, 88 percent of consumers trust online reviews as much as personal recommendations.
There are a few things dealers can do to encourage customers to write online reviews:
– Include a request for reviews on your website and in your email signature
– Make it easy for customers to write reviews by providing a link to your review page
– Thank customers for writing reviews and share the positive reviews on your website and social media pages
By taking these simple steps, dealers can generate more online reviews and build trust with potential customers.
Another way to build trust is to offer a wide selection of vehicles. This will show that you have something for everyone and that you’re committed to meeting the needs of your customers. You can apply for floor plan finance to get more cash in hand to purchase stock for your floor and take advantage of good deals.
Finally, in order to promote and market a used car dealership, you need to provide excellent customer service. This means going above and beyond to make sure that your customers are happy.
5. Compel Shoppers to Come Into Your Store with Irresistible Offers
There are a few things you can do to compel shoppers to visit your store and buy a car. One is to have irresistible offers, such as a free car history report, free oil change or a free vehicle inspection. You can also offer a great selection of cars, so shoppers know they can find what they’re looking for at your dealership. Additionally, make sure your dealership is easy to find and has a friendly and helpful staff. By doing these things, you’ll make it more likely that shoppers will visit your store and buy a car.
Some other practical marketing tips include:
- Have a strong web presence. This is where most car buyers start their search. Make sure your website is easy to navigate, your inventory is up to date, and you have a strong online presence across social mediaplatforms.
- Use targeted advertising. Use targeted ads to reach potential car buyers who are looking for a specific type of vehicle.
- Stay up to date with the latest automotive trends. Keep your inventory current and offer the latest models and features that car buyers are looking for.
- Offer financing options. Many car buyers are looking for financing options, so make sure you offer a variety of loan terms and rates.
- Offer a used-car buying service to help your customers sell old vehicles and potentially used it as a trade-in for a new vehicle purchased through your used car dealership.
These are some practical and actionable tips any used car dealership owner who is serious about making more profit should investigate further.
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There are a lot of dealerships out there. And not all of them are created equal. The key to success is to know your customers and to work with them to find the right car for them. If you’re looking to start a used car dealership in South Africa, there are a few things you need to know first. One of the most important factors to consider is how much it costs to start a used car dealership in South Africa.
Here’s the bottom line. If your goal is to build a reputable brand from day 1, you’re looking at needing around R4 million in capital to get your used car dealership off to a good start, according to TopAuto.
The cost of starting a used car dealership in South Africa can vary depending on a number of factors. One of the most important factors to consider is the location of your dealership. If you’re looking to start a dealership in a major city, the cost will be higher than if you’re looking to start a dealership in a smaller town.
Another factor to consider is the size of your dealership. If you’re looking to start a large dealership, the cost will be higher than if you’re looking to start a small dealership. Some people want to go all out from the get go, while others are happy to start off small from home.
The cost of starting a used car dealership in South Africa can vary depending on a number of factors, so it’s important to do your research before you start. By doing your research, you’ll be able to determine the right cost for your dealership and the right cars to sell.
Breakdown of Costs
The cost of starting a used car dealership in South Africa can vary depending on the size and scope of the business. However, some of the basic costs that are typically associated with starting a business include:
– Business Registration fees start at a couple hundred Rand and escalate upwards depending on the type of business registration and your service provider.
– Licensing fees
– Business Insurance
– Advertising and marketing costs: as a rule of thumb you should invest between 20 and 30% of your profits back into advertising
– Website development costs: a decent website by a professional web designer costs around R10 000, remember you get what you pay for so don’t skimp on quality.
– Staffing costs (may not be necessary as you start out)
– Lot or business premises rental or bond costs
The average cost of starting a small used car dealership in South Africa is around R500,000. This includes the cost of the leasing a premises, initial stock, vehicle licensing and other associated costs.
Inventory
In addition to the cost of starting a dealership, you’ll also need to factor in the cost of inventory. The cost of inventory can vary depending on the type of cars you’re selling. If you’re selling high-end cars, the cost of inventory will be higher than if you’re selling low-end cars. If your target market is students, for example, you’ll be able to acquire cheaper stock and potentially turnover stock faster than if you try sell Porches and Ferrari’s in the millions.
If you find yourself growing exponentially and needing to acquire new stock for your floor, you can apply for floor plan finance. This is specialised finance for used car dealerships to give you the purchasing power you need to make quick buying decisions and capitalise on good deals to make bigger profits.
If you missed our last post covering the steps to starting a used car dealership in South Africa, you can get all the details here.
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If cars are your passion, perhaps it has always been your dream to start your very own used car dealership. As the saying goes, when you are doing something you love, you won’t work a day in your life! As great as that may be, as with starting any business, there is a lot of work that goes into starting a used car dealership in South Africa. To help you, we’ve compiled a step by step guide of how to start a used car dealership in South Africa.
Who is This Business Right For?
A used car dealership owner should possess certain traits to be successful. These include
– A love for cars
– A good eye for spotting a good deal
– Excellent customer service skills
– A good knowledge of cars
– The ability to work hard
What Does a Typical Day at a Car Dealership Look Like?
When you run a used car dealership, you can expect to spend most of the day attending to various tasks. You will need to be able to:
– Deal with customers
– Handle the paperwork associated with buying and selling cars
– Inspect and appraise cars
– Advertise and market your business
– Manage your inventory
– Deal with finances
– Keep your lot clean and organized
How Does a Car Dealership Make Money?
Most used car dealerships make their money by finding stock at good deals and then selling the vehicles at a higher price to make a profit. Used car dealerships also make money by selling car parts, accessories and offering services.
What are Some Skills and Experiences Essential To Building a Successful Car Dealership?
In order to start a car dealership, you will need to have skills in sales, marketing, and management. You will also need to have a good understanding of the automotive industry and the current market conditions. It is also helpful to have experience in the used car market, but this is not a must. Passion, drive and a good work ethic are the driving forces behind any successful business.
What are the Costs Involved In Opening a Car Dealership?
Used car dealerships can be started with a relatively low amount of money, making it a good business opportunity for those who are looking to get into the automotive industry. The costs involved in opening a car dealership can vary depending on the size and location of the dealership. However, some of the most common costs include:
– The purchase or lease of a property, unless running the business from home
– The purchase of new and used cars
– The cost of renovations to the property
– The cost of signage and advertising
– The cost of employee salaries (this may come later only as you expand)
Opening a car dealership can be a lucrative business opportunity, but it is important to do your research and planning in order to make sure that you are able to cover the costs involved.
What are the Steps to Starting a Car Dealership?
Step 1: A Solid Business Plan
The first step in starting any business is to create a detailed business plan. This document will outline your business goals, strategies, and how you plan on achieving them. In order to start a used car dealership in South Africa, you will need to research the market and understand the competition.
Step 2: Register a Legal Entity & for Tax
Once you have created a business plan, you will need to register your business with the South African government. This process can be completed online and will require some basic information about your company.
You will also need to apply for a special permit to trade which you can get more information on here.
Step 3: Open a Business Bank Account
In order to open a business bank account, you will need to provide your company’s registration documents, as well as a letter from your financial advisor confirming that you are the owner of the company.
Step 4: Set Up Business Accounting System
You will need to set up a business accounting system to track your income and expenses. This will help you keep track of your financial performance and make sure you are making a profit. You can use a simple spreadsheet or a more sophisticated accounting software package, many which are very affordable and available online.
Step 5: Get Business Insurance
You will need to get insurance for your dealership. This will protect you in case of any accidents or damage to your business, stock or even to customers visiting your lot. Remember the floods in April 2022 and the looting in 2021? Imagine not being covered and watching your floor stock float away, get written off by water damage or driven away by looters. Its not worth risking going without business insurance, especially in South Africa.
Step 6: Find a Location
The next step is to find a location for your dealership. You will need to find a space that is large enough to house your inventory and office space. It is also important to find a location that is accessible to your target market.
Step 7: Growing Your Business With Floor Plan Finance
The final step is of course acquiring stock for your use car dealership. You may have enough capital to invest in stock as you get started but when you start to grow exponentially as word gets out, you may find you have a cash flow problem on your hands. So how do you work around this? Used car dealership floor plan finance! This will help you to get the stock you need to keep your business growing without breaking the bank or having to apply for a business loan. In fact, our fast-track option lets you apply for up to R150k without going through the full application process to get cash in your hands faster than ever.
There you have it! Your ultimate quick-start guide to starting a used car dealership in South Africa. Keep your eye out for more in our series on floor plan finance and business tips for used car dealers in South Africa.
Check out our previous post covering the benefits of floor plan finance here
