Equipment Loan Agreement: Fill & Download for Free

Contrary to widespread belief in the UK (and seemingly in the US) that the “Yanks had Britain over a barrel” debt-wise (to paraphrase a totally off the mark BBC documentary, the truth is far less satisfying if the goal is to condemn America for a ruthless “business is business” attitude toward our closest ally.First, on food, equipment, and other war materials, called Lend-Lease; the US gave a significant percentage of lend-lease to Britain to fight the Nazis beginning well before Pearl Harbor. Moreover, the equipment was given as a loan, with no expectation of repayment once British gold reserves were low. Initially given obsolete destroyers in exchange for long term leases at UK Naval bases, the quid pro quo was soon dispensed with and Britain was given the materials free of charge. A total of $50.1 billion, or 12 percent of total US expenditure in WWII.Next on actual war time loans; the British enjoyed the backing of the US treasury once their gold back sterling was precariously low. They would’ve starved without it.These wartime loans were forgiven. 100 percent. A delegation led by John Maynard Keynes came to the US in July 1945 and was successful in getting the existing loans forgiven, as well as securing new loans for the post-war needs of the UK from both the US and Canada, called the Anglo-American Loan Agreement. The “new world coming to the aid of the old,” to borrow Churchill’s words.These new loans were given to the UK at a very low interest rate (2 percent) and were engineered with a stopgap measure that gave the British Treasury the choice of suspending repayments if their economic situation called for it (which they did so a few times until the loans were fully repaid (2006). $83.25B was repaid to the US and $22.7B to Canada.Separate from this was the Marshall Plan, of which the UK was the largest recipient (26 percent of the total of $193 billion in 2017 dollars). This money was gifted to Great Britain.The US was the only major combatant to have been left unscathed by the War. We needed customers to buy our goods and as the might of the US industrial base ready to provide Europe with consumer goods, this was certainly in our interest.But to say we treated the British with anything less than charity, amity, and compassion is totally false.

A chattel mortgage (also known as a bill of sale or equipment loan) is a loan agreement where the funds are borrowed to purchase equipment or trucks for commercial purposes, and a charge is taken over the goods that are financed.In addition to flexibility, there are several benefits of using the chattel mortgage such as tax deductions, the capacity to claim GST and payment flexibility.

50/50 is never a good deal.It is a bad deal for you, and a worse deal for your investor.First, you’re giving the investors half of your profits forever, in return for $75K. From a business perspective that doesn’t even make sense. You will eventually tire of this arrangement, and have no other alternative to get out of it besides closing the business. Then you get sued.And, believe it or not, it is even a worse deal for your investor. He is giving you $75K and getting nothing, except a promise concerning something that might or might not exist. This also does not make sense from a business perspective.Think about this.Just using hypothetical numbers.The investor loans you $75K and you use it to buy whatever you need to create the business.The loan is secured by the business equipment, the name, the goodwill, etc.You pay the investor $1,500 per month as interest-only payments on the loan for the first year. This should be something that the business can afford, or else it is not a viable business. You are retaining complete ownership of your business, and the investor is receiving a 24% annual return on his investment. It’s a good deal for both of you.Then, your loan agreement has a clause that says that after one year, the investor can purchase from you 50% of the business for $75K, which would cancel the loan.Then you would each be entitled to half of the monthly profits.It’s a better way to do it.I hope this helps.Good Luck.Michael Lantrip, Author “How To Do A Section 1031 Like Kind Exchange.”