Our blog highlights Canadian Business Financing solutions via receivable finance , equipment finance, working capital financing, asset based lending, business acquisition financing,franchise finance, and tax credit monetization via SRED and Film Tax Credits. Our goal is to educate and assist Canadian businesses with their financing needs. You Are Looking For Canadian Business Financing! Welcome to 7 Park Avenue Financial Call Now ! - Direct Line - 416 319 5769
Tuesday, February 15, 2011
Commercial Business Equipment Leasing Services Provided by Financing Companies in Canada
Business owners want to maximize services and benefits related to commercial business equipment leasing and financing. Being able to work with companies that can provide you with asset acquisition financing allows you to resolve that age old question - ' should I buy or lease that new asset? ’
The reality of business assets, 99% of the time, is that they depreciate and eventually become obsolete - whether its 3, 5, or even ten years down the road. When you think of leasing you should view it as a ' utility ' service. What do we mean by that?Let’s use electricity as our example . You want to use electricity, but you dont want to own it. That’s how you need to view business equipment finance - a solid way of financing something that is depreciating in value. You are, in effect, matching your cash outlays against the useful equipment life of the asset.
As business people we want choices, alternatives so to speak. Clearly that’s where lease financing in Canada steps up to the table. Want prompt credit approval - leasing is probably the fastest method of obtaining a commercial credit approval in the Canadian financing landscape.
Want choices - boy have we go choices. Some of those very real choices, services and benefits include matching the type of lease you write to your asset type. If you are leasing technology such as computers you want to probably focus on what is known as an off balance sheet or operating lease. Even though the accounting popularity of accounting for this type of lease is disappearing there are still significant services and benefits - i.e. lower payments, ability to upgrade or return the asset, etc .
It's almost always about cash flow and working capital when it comes to looking at asset acquisitions for your company. You have a budget, you want to maximize it. You dont want to outlay huge sums of capital, and to top all that off you want to stay competitive and buy the newest, latest, and greatest . That clearly is the service offering com financing companies in Canada, who want to tailor your commercial business equipment leasing needs to what makes optimal sense for your firm.
In larger corporations executives are measured on key financial metrics / ratios such as return on capital and return on equity. Simply speaking if they can improve profits and shareholder wealth by minimizing capital outlay, or structuring off balance sheet transactions... well, you guessed it, that’s why they employ lease finance and loan strategies. (By the way a lease is not a loan but the terms are often intermingled by our clients).
So do these services really keep you ahead of the curve in capital asset acquisition - we certainly thin we have shown you they have? Utilizing lease finance allows you to acquire current technology, maximize financial statement and accounting benefits, and give you maximum flexibility relative to assets acquire and cash outlay.
Speak to a trusted, credible and experienced Canadian business financing advisor on how commercial business equipment leasing in any area of your business provides you with services and benefits you previously weren’t aware of or were not maximizing.
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Stan Prokop is founder 7 Park Avenue Financial ; Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:
http://www.7parkavenuefinancial.com/commercial_business_equipment_leasing_financing.html
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