When Canadian business owners and managers are aware of the benefits of equipment finance leasing and leasing services their ability to get rates, terms and structure approvals that makes sense increase dramatically.
Equipment financing in Canada is one of the easiest methods of financing business assets bar none. However, at the same time the complexity of the different types of leasing and who offers lease financing can be a true challenge that you might not want to dedicate all your time toward.
You can obtain the best leasing services and rates by focusing in on what benefits matter to your firm from a priority basis – in many cases its simply the term and rate on the lease financing . Depending on what type of asset you are financing lease terms vary from 2 to 7 years – at the end of the day it depends on the equipments useful economic life, combined with the type of lease you structured. In Canada that is either an equipment finance lease, designating your desire for ownership, or an operating lease, designating your firm’s choice to use an asset, but not ultimately own it.
Leasing is often referred to as a cash flow enhancer – little or no money down, as well as your ability to craft monthly, quarterly, or semi annual payments with can either accelerate or decelerate as you require. That’s true cash flow management.
Equipment lease financing is all about benefits and use, not real pride of ownership. In most situations today assets depreciate... you certainly can’t look at your investment in computers and technology and make the case those assets are rising in value!
With today’s volatile finance markets, inflation, and the somewhat erratic timing of the need for your asset acquisitions isn’t it a safe bet to know that the decision process becomes much easier when leasing services provide you with an effective acquisition tool.
Clients always inevitably ask ‘why is lease financing so popular ‘? The reality is that is a triple threat to your competition. You can effectively stretch your dollars, extend your budgets, and acquire equipment and facilities with the most minimum investment of funds. That is simply because you are matching investment of your funds with the useful economic life of the asset – what else could make more sense.
Equipment finance leasing allows you to generate the payments you need to make for the asset from income produced by the asset – payments are made from current revenue and the equipment and assets you finance are in effect a ‘pay as it earns’ scenario . Today’s costs are paid with tomorrow dollars since lasing involves payment for equipment as it is used. Naturally if you chose to buy the asset outright we can make the statement that you would be using today’s dollars to hand tomorrow expenses, and we advise against that in conversations with clients.
Speak to a trusted, credible, and experienced Canadian business financing and lease advisor on how you can maximize the benefits of equipment lease financing to grow revenues and profits .
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Stan Prokop - founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 6 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/equipment_finance_leasing_services.html
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