Financing Sources In Canada : Little Known Ways To Use Capital Leasing And The Finance Lease

Looking For Evidence That Equipment Leasing Is For Your Company ?

OVERVIEW – Information on financing sources in Canada . Capital Leasing Via The Finance Lease Is A Solid Solution For Asset Financing Needs

Financing sources in Canada come in different categories. The finance lease is simply one of the best tools to maximize capital leasing. But does every business owner/financial manager know how to maximize this method of asset financing? Let's dig in.

We're told you can't fight a trend, and no method of financing assets has grown as equipment financing has over the last several years. North American figures suggest an overall 10%+ growth.

So whether that’s a ' micro ticket ' LEASE ' for items under 25k, or ' small ticket ' ranging from 25k to 100k there’s clear proof that whether its a 2k photocopier , or a multi million dollar piece of plant machinery or office technology its safe to say the evidence suggest this is one of your best methods to acquire assets .

The issues of ' cash flow ' and ' alternate sources of borrowing ' should be high on the list of key ' evidence ' analyzed by the business borrower.

What in fact are the main types of assets that consistently are financed on a day to day basis by everyone, including your competitors! That ' hit list ' includes:

Rolling Stock

Technology

Construction and Plant Floor Equipment

Medical equipment

Business owners/managers like capital leasing because credit approval on terms they can live with is much quicker than that offered by bank and other ' term lenders'.

While the true ' finance lease ' finances 100% of your asset needs on a ' lease to own ' basis don’t forget also that many firms still take advantage of operating leases. Operating lease characteristics include the ability to use but not own an asset, typically shorter lease terms ( 2-3 years are common amortizations ) , and attractive end of term options such as the ability to upgrade, purchase if desired, or return the asset .

We also add as a short footnote that two other aspects of equipment financing should not be overlooked - they are the sale leaseback of assets you already own, as well as the ability to collateralize owned assets under a short bridge loan.

Capital leasing often satisfies the true objectives of the business owner and offers maximum flexibility as a ' financing tool’

Looking for more ' evidence ' that the finance lease is right for your company? That includes:

Hedging asset life against inflation

The ability to pick terms from 2-7 years

Maximizing cash flow

Capital leasing rarely comes with restrictive borrowing covenants

Working through budget and cost restrictions

If you're looking for ways to use Capital lease financing as a tool to run and grow your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can provide ' the evidence '!











Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN FINANCE LEASE EXPERTISE



Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '













Stan Prokop

Put An End To Canadian Asset Finance Problems! Use Smart Lease Financing & Capital Leasing Strategies

Bank Finance Challenges For New Assets ? – Here’s A Solution

Information on lease financing in Canada. Use smart asset finance strategies and these tips to win with capital leasing solutions that make your firm a winner in asset financing .




Safe to say that Canadian business owners and financial managers have enough to worry about these days, so asset finance via lease financing for capital acquisition of equipment, hardware, software, etc shouldn’t be one of them!

The benefits of lease finance have been pretty clear to Canadian businesses for many years. And when we say ' Canadian business' that means in the case of capital leasing strategies every size of business in Canada, from start up to major corporation.


The industry in Canada has tended to segment itself into 3 size categories, simply speaking small, medium and large ticket transactions. In Canada billions of dollars of capital has been invested into the industry and those funds are used to finance your equipment needs- everything from hard assets and the soft costs that are associated with them, up to and including software, cloud computing, well, you name it!

There is always an ongoing debate as to the cost of lease financing versus buying an asset outright with your own funds, versus leasing it. It's the proverbial ' lease vs. buy' that many of us are faced with even in our personal finances when we decide to buy a new car, etc. Depending on the variables in the lease vs. buy template we suppose that in certain occasions leasing might be more expensive. But whets the alternative when you think about it, because that involves using a large amount of your business cash or operating line of credit, or applying at the bank for a term loan and not getting approved.

When we speak to clients about capital leasing its loud and clear that they utilize this time worn asset finance strategy simply because it’s easily obtained. It’s as simple as that. In reality a large part of the industry, certainly in the small ticket area - i.e. 1-50k operates only on an application only basis, no financial stats required. Naturally in larger transactions you do need a solid application that includes historical and interim financials, info on the owners, etc.

When you are looking to achieve a solid rate, term and structure around your asset finance transaction it’s important to receive a quote that is clear. We are not impressed by some in the industry that tend to use a smoke and mirrors strategy around getting your business, as the industry in Canada is quite ' hot' and ultra competitive these days. In reality there’s only 5 key elements to your transaction - term of the lease, rate, payment, end of lease obligation and value of your transaction. So understand them and make sure it’s an ‘apples to apples ' comparison. Utilizing the services of an experienced lease financier in Canada can often save you thousands of dollars and speed approval.

So if for any reason bank financing is ' elusive’, and you wish to preserve valuable cash flow speak to a trusted and credible and experienced Canadian business financing advisor who can assist you in maximizing asset acquisition needs in Canada. 80% of all businesses lease finance, so welcome aboard!



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

'We Finance The Little Guy'

P.S. We finance the big guys also@


http://www.7parkavenuefinancial.com/lease_financing_asset_finance_capital_leasing.html