Equipment Financing – Toronto Area

Canadian business wants and needs equipment financing. As the Canadian economy continues to improve your business has the need for new or replacement equipment.
You naturally want to do that in an efficient and economical manner. In general, all types of equipment can be financing – Some of the main categories of equipment that can be financed are:

Computers (‘Information technology” ‘IT ‘ )
Plant and production equipment
Software – (Yes, software!)
Rolling stock – i.e. trucks, trailers, etc
Specialized Equipment

Etc!

The challenge for the Canadian business owner is to understand the Canadian leasing landscape and determine which lease partner suits their needs.

Many of our customers focus on ‘rate ‘, or in effect the price. It goes without saying that your firms want a competitive rate, and clients are surprised when we say they get to pick their own rate! What do we mean by that? We simply mean that your company’s overall credit quality will always determine the rate and structure and term of the lease. However, in order to achieve that best rate or ‘ pricing ‘ you need to ensure your company is presented in the best light possible .

In order to achieve both a prompt approval and a solid structure we strongly recommend that you work with a trusted, experienced and credible lease advisor in your area. The ability to properly understand your needs, and to present them in the best light possible is critical.

What is involved in a solid lease equipment financing submission? In Canada many, in fact the great majority of leases under 50,000.00 can actually be approved without financial statement disclosure. You should clearly expect to be providing financial statements on transactions over 50k.

How is lease approval decisions made? No one factor determines an equipment lease financing approval. It’s quite frankly what our firm likes to call the ‘weight of evidence ‘. That simply means that several key factors such as your financials statement health, the current state of your industry, the asset quality, and your ability to demonstrate re payment are the key factors in any lease financing approval. Depending on the size and nature of the asset any one of those indicators might carry a bit more weight. From a technical point of view the ability to show cash flow repayment is very important.

Clients looking for lease financing often are surprised about a few things – examples are as follows –

-You don’t have to be an established business – lease financing can be for a start up or emerging company also
- Your equipment doesn’t necessarily have to be new, it can be used if you can demonstrate its value and that it has been maintained and still has a useful economic life
- You might already own an asset – let’s say it is not financed, you can lease it back to the lease firm and generate cash flow and working capital from that transaction!
- Banks in general in Canada do not provide lease financing – two of the Canadian banks have lease financing operations but credit quality must be quite good to achieve bank type lease financing
- Being declined does not necessarily mean that you can’t get the equipment financing – we simply re structure the transaction to meet the approval criteria – that might mean a down payment of a shorter term, etc

There! You just learned 5 interesting and valuable facts about lease financing!

If you are looking for Canadian lease financing speak to an experienced professional in the industry and ensure you take advantages of this great type of financing.

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Stan Prokop is founder of 7 Park Avenue Financial - www.7parkavenuefinancial.com
Originating financing for Canadian companies, specializing in working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies of all size . For info and free consultation on Canadian business financing and contact details see:
http://www.7parkavenuefinancial.com/equipment_financing_toronto_area.html