NCET

It is no secret that obtaining credit is especially challenging for businesses in this market of fewer lending sources and stricter requirements. In addition, finding new ways to maximize the efficiency of cash flow is more important than ever.

If a business owner is considering a new loan, a key factor is taking the time for thorough preparation and documentation. Include detailed background on the business and performance – past, current and financial projections for the next three years.  If the business’ trends are down, include specifics on the steps being taken to improve the situation.

For new equipment purchases, businesses may also find a solution with significant benefits in leasing by talking to their banker and tax advisor about provisions in the American Recovery and Reinvestment Act of 2009 (ARRA 2009). Through this legislation, companies may cut their 2009 tax bill and at the same time, free up cash in the near term. The ARRA provides an additional 50 percent first year bonus depreciation, and expense limits have been increased $250,000 if total purchases are not above $800,000. Eligible equipment ranges from computers and printing equipment to telecommunications, transportation, office, industrial, construction, and medical and dental practice equipment. Read full story:

Technorati Tags: Bruce Hendricks, Nevada Business Journal, American Recovery and Reinvestment Act, Western Alliance Bancorp, Bank of Nevada, NCET, Nevada’s Center for Entrepreneurship and Technology

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This entry was posted on Saturday, May 30th, 2009 at 11:44 am and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.