Leasing Companies In Canada You Need To Know This About Equipment Financing

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OVERVIEW – Information on leasing companies in Canada . Equipment financing, when used properly offers the Canadian company great and flexible solutions for their asset finance needs




Leasing companies and equipment financing. Is it possible that this Canadian business finance method addresses all your needs such as cash flow, accounting and tax when it comes to asset acquisition in Canada? We think so and here's why.

The reality of business asset acquisition and replacement needs is that the Canadian business owner wants to optimize the solution around that need. He or she wants options, flexibility and quite frankly less worry or business stress surround the need to purchase equipment assets.

It's been described that the whole process around equipment finance is in fact a ' cycle ‘, and when you learn how to manage and optimize that cycle you're in a winning position . It's not as difficult as you think, it’s simply entering into the right lease structure, ensuring you have and understand your flexibility and rights in the transaction, and then decided at the end of the term what your best options are re: replacement, sale, upgrades, disposition, return, etc.

The dominant form of equipment financing in Canada is probably what the industry calls ' finance leases'. At their basics they are simply full payout transactions with you owning or purchasing the asset at the end of term. The economics to the leasing company are pretty simple - their profit is the spread between what they borrow at and what your lease rate is.

If that sounds a bit boring... we don’t think it is... but... that's when the excitement begins. Many other benefits and features in the whole leasing cycle can kick in , should you choose, to address cash flow management, end of life options ( that's end of life in the lease by the way!) And various renewal and purchase options that maximize the flexibility we've been talking about.

One of those options we're talking about today is fairly under utilized these days. It’s the ' operating' or ' fair market value' lease, which allows you to consider your asset transactions in a term that many lessors call the ' asset life cycle '. That’s because when you utilize this type of transaction you can invoke your right to change your assets, payments, etc during the term of the lease. Operating or ' FMV' leases are very solid solutions when it comes to assets such as computers, telecom, aircraft, etc. Who wouldn’t want a corporate jet with low monthly payments we think!

Approval on leases comes down to a combination of credit quality of your firm and the focus on the true value of the asset at the beginning, middle and end of term of the equipment financing transaction. Leasing companies in Canada 'price to risk ' and the good news is that the industry can address the entire spectrum of business credit - from start ups, to challenging credits, to blue chip investment grade transactions which are funded at an ultra low cost to your firm if you qualify . Oh and by the way, competition is intense in the industry, so hundreds of firms and intermediaries want your business.

Using an INTERMEDIARY by the way is one of the best ways to address your inter action with leasing companies. A solid intermediary will know the market, have the respect of the industry and be able to deliver you the best asset finance solution at the lowest cost with maximum flexibility.




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 10 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-companies-equipment-financing.html





7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
























Stan Prokop