Equipment Capital – Financing Options you didn’t know you had

Equipment Capital and the financing that’s required to complete asset acquisitions is a large part of the Canadian equipment financing puzzle . Business owners in Canada want to stay ahead of the competition and technology curve – to do that they require computers, machinery, and other assets that can help to grow revenues and profits.

Lease financing is one key method that allows that to happen. At the heart of the equipment capital lease financing solution is the premise that business owners want to use equipment and assets for a specified period of time, while at the same time not wanting to outlay huge amounts of capital and use line of credit facilities that otherwise might be used in day to day working capital facilities .

To put it simply, business owners and financial managers want to use assets, but they don’t necessarily want to pay to own them – and they certainly don’t want to mis – appropriate large amounts of capital as down payments or payment in full for ownership of a depreciating asset.

The hard reality is that equipment capital and lease financing is available to every business in Canada, whether you are a start up or a major Financial Post 100 corporation.

In today’s competitive environment it’s all about staying ahead of the curve, and business owners want to ensure they have the fixed assets in place that will allow them to grow profits and revenues.

Accountants and miscellaneous financial advisors will also tell you about the other benefits of equipment capital financing, which include balance sheet benefits and income statement benefits re taxes, depreciation, etc. Those truly are great benefits, but the bottom line is that when you acquire assets through a leasing you are profiting form use, not ownership, and we advise clients that is a very powerful statement.

All business owners and financial managers know that it’s all about cash flow, and your ability to both save on capital outlay and acquire much needed assets is the key benefit of equipment capital leasing.

When you are well informed about lease financing options in Canada you have the ability to enter into lease contracts which have several other benefits – i.e. you can finance delivery, installation, maintenance, etc. Prudent business owners will match the term of their lease to the expected use of the equipment. For example, why would you buy computers outright, or mistakenly lease them for 5 years, when in fact the reality of computing is that you will replace them every 24 months or so, if not sooner . That’s what lease financing flexibility is about. In many industries prudent business owner’s use lease financing as a roll over strategy – they continually on a regular pre determined basis acquire new assets which are rolled over into a new lease arrangement.

Utilize equipment capital and lease financing wisely – understand your options, and work with a trusted advisor in this area of Canadian business financing. Use asset acquisition as a key strategy to remain both competitive and profitable.

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