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.
Tuesday, September 4, 2012
On Top Of Trends In Technology Leasing And Business Equipment Financing ? Smart Choices To Increase Canadian Lease Benefits
Successfully Managing Your Leased Asset Strategies
Information on technology and business equipment leasing in Canada . Benefit from asset acquisition via a capital or operating lease .
The ability to stay ' on top ' of what’s happening in technology leasing or financing your other business equipment needs gives the Canadian business owner two things: Options, and of course benefits!
The concept of ' change ' drives a lot of technology acquisition and finance decisions. Business owners and financial managers don't even seem to think twice these days about whether they need to acquire computers, telecom, software, and other ' tech ' type assets the reality is that those improvements to your competitiveness and infrastructure cost a lot!
And let's not forget to mention that new concepts such as Cloud computing, virtual, and grid computing, etc simply bring new burdens of decision making for the owner, finance manager, and IT manager in any small to medium size corporation in Canada. We're somewhat leaving out the larger corporation given they have the assets and tech savvy to wrestle down these challenges in a much easier fashion.
So how do you fund these acquisitions ... the goal seems pretty simple - buying the best and right products and services and paying or financing them in the best manner possible. Easier said than done.
When you think about it what you want to do is not that complicated conceptually - its simply about picking the right financing option and ensuring that the cash outflows, structures, and tax/accounting type benefits match what works for your firm . Again, we know what you're thinking ... easier said than done, right?
Don't forget also that in a perfect world you want to match benefits of your financed assets with cash outflows. That’s why the majority of tech assets are leased; business doesn't want to pay up front and reap benefits over time down the road.
There is a substantial amount of flexibility in the term, or amortization of tech financed assets. Typical terms available range from 2-5 years ... but we always caution business owners that long terms , while they lower the monthly payments, come with a cost re replacement, functionality, obsolescence, reduction in competitiveness, etc. So bottom line, watch the ' term'!!
While for many assets the business owner/ manager is always focused on the implicit interest rate in the least we caution lessees do not overly focus on the rate as opposed to the term, structure and type of lease, conditions , and the all important end of term decision - namely, return, replace, or upgrade .
And getting back to that ' interest rate ' issue, the reality is that in the current 2012 competitive leasing equipment marketplace clients have access to some of the best terms, rates, and structures within the industry, as the lease finance folks are busier than ever, and very competitive . Lease financing is available from bank subsidiaries, U.S. lessors with Canadian representation, and independently owned Canadian firms that service transactions in the small, mid, and large ticket asset area.
One word of caution though, not all firms are both experienced or even have an appetite for tech type assets such as computers, software, cloud computing, etc . It might be advisable to seek the service of a trusted, credible and experienced Canadian business financing advisor to wade through the lease industry ' jungle' on your behalf .
The bottom line - focus on type of lease, and working with the right party. Your ability to manage and finance tech assets will become much easier and give the business owner and manager the feeling that invested and spent funds for business equipment assets are achieving the benefits your firm deserves.
7 PARK AVENUE FINANCIAL
CANADIAN TECHNOLOGY FINANCING AND LEASING EXPERTISE
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 :