In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.
Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.
Sunday, December 11, 2011
No Brainer Financing - Equipment Funding and Leasing Services In Canada
Smart Asset Finance In Canada Starts With Leasing
Information on equipment funding and leasing in Canada. Utilize asset finance services for maximum benefits and minimal downside risk .
The business ' no - brainer '. A sometimes overused term that means of course an easy solution that’s ' obvious'. That’s more or less how we feel about equipment funding and leasing services in Canada. Let's explain why.
Given the amount of businesses that use lease financing in Canada (approximately 80%) it’s clearly a fact that whether your firm is a start up or one of Canada's major corporations that leasing services in Canada solves asset financing challenges and problems. Rarely does one form of Canadian business financing address the ' numbers' and ' budget' challenge so effectively.
We supposed that if you consider that Canada's FP 100 largest firms consider leasing a ' sophisticated ' method of financing assets that it’s a little difficult to imagine a small start up business using the same financing vehicle, but the reality is, its one size fits all!
Part of the ‘ no brainer' aspect of equipment funding is simply the fact that every type of asset can be financing, including by the way intangible assets such as software and service type contracts.
Business owners sometimes do however actually miss the key basics of lease finance - it’s the lessor who owns the equipment, and you are paying, in effect ' rent ' to use the asset. Naturally at the end of the term of your transaction, depending on how you have structured the transaction you can either own the asset, return it, or invoke other types of flexibility - i.e. temporarily extend, etc.
It's the lease contract, either through a ' master lease ' or simply a one time transaction document that specifies your rights and obligations. Lessors in Canada register their lease under Canada's Personal Property Security Act which allows lenders, creditors, owners, etc to ensure the collateral is properly collateralized and secured.
In fact, here’s a tip. If you want to see who your competitors finance with have your lawyer run a PPSA search and you'll get a list of all secured financings on that competitor. It's a commonly used, dare we say ' trick' by numerous parties for various purposes, and there is nothing wrong with it.
A good way to assess your whole view and use on leasing is to think of it in a couple categories; they include: benefits, risk, documentation, and credit approval.
A tremendous amount of confusion exists out in the Canadian marketplace around the difference between leases and a loan. We can assure you there are differences, and knowing those differences, and how they affect your balance sheet, income statement, taxes, and rights can save you thousands of dollars .
Your business will make the final call, but if billions of dollars are financed under lease equipment funding strategies in Canada every year someone is clearly on to something, and that’s why its prudent to investigate the ' no brainer ' aspects of leasing in Canada . Speak to a trusted, credible and experienced Canadian business financing advisor on getting the best rates, terms and structures for your company or business.
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing .
Info re: Canadian business financing & contact details :