Advantage of leases on personal credit

Leases have long been a popular financial instrument.   Leases are often reported differently than regular loans.   Depending upon the lessee, the reporting differences may be an advantage or a disadvantage.

In many cases, leases are not reported on personal credit, especially business leases.  In a business lease, the lease is not reported on the signer’s personal credit.   For more established businesses and individuals with a longer, more established credit history, the fact that the lease is not reported is considered an advantage because it will not be counted as an additional debit to the individual.   Conversely, if the lease were reported, it would be considered a disadvantage.

 

In the case of newer businesses, younger individuals or individuals with limited credit, the fact that the lease is not reported on individual credit could be considered a disadvantage.  In these situations, the lessee may want to build up positive business credit and personal credit and a new significant reporting would be an advantage.    For any business that is less than 3 to 5 years old, a lease reporting will help the business credit since the business is building up credit.

Many of the business credit agencies will report the lease or show the lease under one of their industry trade account listings.    D & B, Experian Business credit report and Paynet will typically report the trade reference.    The lessee can take the lease number, lender name and lease approved amount, contact the business credit reporting agencies and check if they are being reported.   If not, the lessee can provide the information to the business reporting agency and get it listed.   Some of the business credit agencies may not have an account or file for the lessee’s business.  In that case, the lessee needs to decide if they want to establish a file.   The business credit reporting agencies may charge a significant fee to get a business credit profile established.

 

If that occurs, the lessee needs to have as many business trade accounts ready as possible. The lessee should have a list ready with existing trade reference company name and account numbers.

Personal Income in Small U.S. Counties

Small Counties personal income, considered counties with populations of less than 50,000, represent 69 percent of all U.S. counties, and account for 10 percent of personal income in the United States, according to the Bureau of Economic Analysis, April 25th, 2012.    In these 2,134 counties for 2010, other statistics as follows:

  • Net earnings represented 58 percent of personal income, while property income represented 16 percent and transfer receipts comprised 26 percent.
  • Net earnings increased 3.8 percent, which is up from -5.0 percent in 2009. Property income increased  2.3 %, up from -12.7 %. Transfer receipts grew 5.2 %, down from 12.4 %
  • Personal income growth also varied from 51.6% in Hyde, South Dakota to -18.8% in Hand, South Dakota.
  • Per capita personal income varied from $94,672 in Teton, Wyoming to $16,299 in Crowley, Colorado.

Personal income is a full measure of the income of all individuals from all sources. On top of wages and salaries, it includes employer-provided health insurance, dividends and interest income, social security benefits, with more types of income included.

Personal Income in Small U.S. Counties Resources:

SBA Community Blog and Forum –  Blog and Forums by the SBA, Small business administration.   Questions can be asked and answers provided.

U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.

U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.

Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.

Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.

International Trade Administration – Creates jobs and economic growth by promoting U.S. companies abroad to governments in other countries.

Personal Income in Small U.S. Counties info resources:

Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health

U.S. Patent and Trademark Office – U.S. office to file patents to protect a companies new or existing proprietary products.

U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.

CEO Refresher – A monthly newsletter on creative leadership ideas. Short articles, brief book reviews, models, management tools, quotations and commentary.

E-Network for CEOs – Online articles and much more for CEO’s

Public Radio Planet Money – All issues money related to the public.

Thank your for visiting our Personal Income in small U.S. Counties resource page!