Business Leasing and Equipment Financing in Canada

Your firm is growing, and guess who else is? Equipment leasing in Canada gets bigger every day. Doesn't it make sense that you have a basic understanding of equipment financing and who to turn to when you want to utilize this great asset acquisition technique? The reality is that almost 80% of all companies in Canada utilize lease financing when acquiring assets, from computers to plant equipment to specialized equipment.

There must be a reason businesses choose this type of business financing - ' ADVANTAGE'! When you utilize lease financing you are sharing the risks of asset ownership with the lessor and depending on which type of lease you actually choose - there are two types - you can actually use the equipment for the agreed upon term and return the asset . This type of financing, known as an operating lease, also lowers your overall financing expense. The other key advantage of course is simply lowering your cash outlays - allowing you to use your borrowing facilities for other purposes.

When we meet with clients exploring the leasing option a large part of the discussion is on rate and credit - that is what drives leasing approvals! You need to be able to understand, in advance, the financial requirements of a lease approval, and ensure you have positioned your company in the best manner possible.

The best news about equipment financing in Canada is that it covers all asset categories - even intangibles such as software when it comes to technology financing.

In Canada you can obtain lease financing via a couple of the chartered banks, independent finance firms, and captive lessors tied to manufacturers.

We recommend to the majority of clients in pursuing and independent finance company lease partner - credit conditions are more lenient, they are specialized, and highly motivated to do the one thing they do best, approve and write leases! Your most valuable partner in this industry is a trusted, credible , and experienced lease financing business advisor who can guide you very efficiently through the maze of firms in the industry . That relationship can be a very valuable one.

Business owners should never forget that when they adopt a long term leasing philosophy they are making their firm more competitive, because assets acquired to run the business can be easily upgraded and replaced, allowing that equipment to generate optimum revenues and cash flow . When you think about it almost all the assets you purchase depreciate, so why would you tie yourself to a depreciating asset. The Canadian Equipment leasing industry doesn’t want you to do that - the days are long gone re ' pride of ownership ' in assets, now its all about outsourcing, lower cost, newest model, etc . Probably the best example of this is computing and software, all of which can and should be leased.

Speak to a trusted, credible and experience business leasing advisor who can assist you in maximizing your knowledge of the Canadian asset finance industry, allowing you to use this valuable tool to grow sales and profits.
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