Lease Financing Canada – Canadian Asset Financing Solutions

Lease financing in Canada is the acquiring of use of assets such as machinery, vehicles, and computers. Most Canadian business owners and financial managers have recognized for years that this type of financing is a great way to avoid large investments of capital in equipment. You use and profit from the equipment, but the lease finance firm owns the asset for the interim period of the lease.

Canadian business has almost unlimited choice in what can be leased. We advise clients that their only challenge in equipment financing is simply to ensure they have structured the right lease with the right finance partner that offers superior rates, terms, and structures.

Most of the advantages to leasing in Canada are already know to Canadian business owners:

- fixed lower monthly payments
- certain tax advantages
- preservation of working capital
- staying competitive by utilizing and acquiring more up to date technologies for your plant or office needs
- lease payments are expensed and if structured properly do not significantly impact your balance sheet

Naturally there is no ‘ perfect ‘ solution in business financing for all firms for all the time – In certain circumstances you might end up paying a bit more for the asset over time, also, most lease payments, as we noted are fixed, and if you used a loan strategy you might have access to variable rates .

Although most Canadian business owners utilize a lease to own strategy in general you should always be focusing on matching the term of the lease with the useful life of the asset.

We can’t over emphasize that each customer has unique needs and may benefit more from certain of the key benefits of leasing depending on their overall business model and financial structure.

Rates in leasing are important, but at the same time the ‘rate ‘on the lease should not drive your over all decision to finance with any one particular firm. Flexibility, favorable buyout terms, easy to understand documentation, and prompt credit approval are all key factors in equipment financing.
Overall credit quality of your firm is also a key factor in Equipment financing in Canada. We can categorically state that lease financing is utilized by start ups to the largest corporations in Canada. Therefore approvals for equipment financing are focused on the general over all credit quality of your company, and in the case of small business, the credit attributes of yourself as a business owner.

In Canada the players in lease financing are: Banks, Equipment Dealers, Independent finance companies, captive finance companies, and lease financing specialist with a wide access to the market.
In summary, lease financing is a solid strategy for equipment acquisition in Canada. Canadian business owners should weigh the lease versus buy decision carefully and determine which lease benefits are most important to them. Work with a specialist in the area based on your asset type, your firm’s credit quality, and any unique issues you might have in your firm or industry. Utilize lease financing to grow and profit in today’s competitive environment.

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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/Lease_Financing_Canada_Canadian_Asset_Financing.html