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Thursday, June 28, 2012
Do You Like Easy ? Leasing Company Solutions In Canada For Your Capital Lease Asset And Operating Needs
Who Doesn’t Want Easy When It Comes To Asset Finance !
Information on leasing in Canada . Why Canadian business chooses the benefits of capital and operating structures for lease assets in Canada .
Easy. Leasing. What business owner or financial manager doesnt like easy , and when it comes to capital or operating lease assets that's exactly what is happening these days.
It couldn’t be any more basic; it’s you, your lessor, and the use or ownership of an asset. The majority of Canadian businesses prefer what's known as a capital lease, aka ' lease to own ' , The industry sometimes makes this a bit confusing as other terms for this transaction include ' financial lease ' , ' full payout lease' and ' finance lease '.
The bottom line, in that type of transaction you're simply signifying your choice of taking ownership at the end of the leasing term, of the asset or assets in question.
Why then do thousands of businesses in Canada, in fact almost 80%, so it would appear we're probably in the millions, choose the lease of assets as their Canadian business financing mechanism of choice .?
When you think of it, it really comes down to 4 basic reasons. First of all there is the necessity to acquire assets to run their business that they might otherwise not be able to purchase outright. Or perhaps they don't qualify for a bank term loan,
The other reason is termed ' risk shifting ' as your lessor shares the risk of ownership during the lease term.
Thirdly we have tax and accounting benefits that accrue to the Canadian business owner.
The fourth reason. IT'S EASY!!!! ... and convenient.
Almost all asset classes can be financed in Canada , but a great example of 'Easy 'when it comes to financing your business assets is computers , software and tech assets in general.
What business owner today wouldn’t be reluctant to lay out huge sums of cash when it comes to both cost as well as the constantly changing technologies of the tech world?
In fact that very subject, technology asset finance is why thousands of firms opt for the other type of lease available in Canada. That’s the ' OPERATING LEASE ‘and it’s simply a lease that can be renewed, extended, or upgraded during the lease term. That ability to make lower lease payments for only using and then returning the asset has a lot of appeal to chief information office in medium size or larger corporations.
Clearly there is an element of ' pride of ownership ' when it comes to fixed assets for your company. But it’s a changing world, and if you can achieve use and profits of the asset in an economical fashion its clear that leasing is probably for you.
Various techniques can be used when it comes to figuring out the ' lease vs. buy ' conundrum .Just make sure you use an apples to apples comparison tool, and that you understand your cost of capital and the real interest rate you are being offered.
So, ‘EASY’ when it comes to lease assets. You bet. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and operating leasing needs.
7 PARK AVENUE FINANCIAL
CANADIAN LEASING AND ASSET FINANCE EXPERTISE
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 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 :
http://www.7parkavenuefinancial.com/leasing_lease_assets_capital_operating.html
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