finance guy

With times harder than ever, various companies are increasing their offering of flexible finance options to make their products more affordable. There’s car finance, computer finance, even washing machine finance. So with a quality mountain bike costing upwards of two or three hundred pounds at the very least, why shouldn’t there be mountain bike finance?

There is. Cycle companies are increasingly aware that the economic downtown has put their better quality products out of reach of many. Now, to combat dwindling sales they’re making bike finance more and more available, not to mention flexible. Finance might not be the right option for everyone, especially if your credit rating is less than perfect. But if you can handle the financial commitment of monthly repayments, it can certainly help to make your dream bike a reality, quickly and without spending a great deal at once.

Although not everyone offers it, different companies offer varying ranges of bike finance: the diversity in offerings and flexibility is huge. Finance agreements offer deposits in a range of different sizes and monthly payments over as little as six months to as much as three years. However, given the massive fluctuation in interest charges from company to company, it has to be said that some deals offer better value for money than others.

When it comes to choosing a deal, research is key. Even the most finance-ignorant know the basics: the lower the APR the better. Nobody wants their finance to cost them a fortune, it’s supposed to make things affordable after all, so shopping around to try to find an interest free deal is wise. The best ranges of bike finance I found came from All Terrain Cycles, whose online prices are already cheaper than in-store. They offer several deals, available on any bike or frame over £200, subject to the usual credit checks. Interest free credit is available over six months to three years, providing you leave a very reasonable 20% deposit. If you can’t manage that you can leave a 10% deposit, but it’ll push your APR up to 9.9% which, when compared to other companies is still affordable.

Monthly repayment for costly goods is more commonplace than ever and the mountain bike industry is starting to reflect this shift. It’s taken a while for mountain bike companies to follow in the footsteps of the car dealerships and the computer salesmen, but it’s certainly a case of better late than never: mountain biking has never been so affordable.

In the meantime, one has a wide variety of options for small business financing. Fortunately, you have other resources to rely on, unlike just bank loans as it was in the past.

What are the options that are commonly overlooked?

Currently, many unconventional sources of finance are coming up as well, e.g. contract financing, which is one of the widest preferred options. Indeed, it is also known as purchase order financing. Following this option, a lender finances the purchase order rather than the manufacturer. Consequently, the lender gets the agreed portion of profit when the process is finished. This is known as purchase order financing.

What is the next option?

One more type of finance options is to think of grants for small businesses. But, one negative aspect of this option is the fact that grants are not considered that reliable. However, venture capital is one of the small business financing options that is best defined by many applicants. This is especially true since the firms, which fund the proposals presented, are from the small enterprises. The only limitation with these small business loans is that they just finance a very few ventures.

Do you have any other options?

You can avail finance for your small business by selling your debts and stocks in the mass market. But again, one thing you should know is that it is not a common method of getting any help because of its difficult procedures. A large number of small businesses are now funded with the help of debt finance through financial institutions like banks. In this context, banks provide small business owners a line of credit or loan with a repayment term and schedule, as well as, a rate of interest.

How can a financial institution make an educated decision?

In fact, financial institutions or banks will deeply look for how profitable your business is. So, to improve your chances of being financed, just prepare a good business plan. A plan will show them the prospects of your business and, therefore, it will increase your chances to get accepted.

Have you ever thought about the option of debt funding?

There are many private debt investors who invest on a small business through debt funding. To make it a win situation for them, they ask for some equity ownership stakes in return. Borrowers from any class can opt for equity options. Despite having a bad credit rating that may include bankruptcy, default, arrear, CCJ or IVA, one can apply for this option without any problem. Obviously, you will need to put in some efforts for making these financial deals cost effective.