Lease Financing Canada Is Probably Longer Lasting Than Bitcoin

You’d Be Surprised How Much Power Does Lease Financing Has In Canada.


OVERVIEW – Information on lease financing in Canada . How this one financial solution has remained one of Canadian businesses best asset finance mechanisms



Lease Financing in Canada .Financial Managers and business owners in Canada continuously find they are competing in a difficult and challenging economic environment. Equipment Financing and Capital expenditure issues are top of mind when Canadian firms are looking to grow and prosper. Revenue generating assets are important to any business.

When large corporations report their financial the analysts out there focus on Free Cash Flow. This is the cash flow that is left after a company totals their net income and depreciations and subtracts what they have spent on ‘capex’, or capital expenditures.

That free cash flow is of course what’s left to pay shareholders and run the business. But small and medium size firms have a huge challenge in generating free cash flow per our formula above. They more often than not don’t have the luxury of paying cash for much need new and revenue producing assets.

That is why Canadian firms should be looking at Lease financing as an essential asset acquisition and cash flow tool. Let’s do a quick recap on the major benefits of lease financing:

• CASH FLOW - Canadian businesses can conserve working capital and invest those funds instead in receivables and inventory for additional growth – Also firms want to achieve the benefits of these newly acquired assets over time without having to pay for them all at once on day one

• TAX BENEFITS – Lease payments of course can be expensed and are generally more advantageous from an accounting viewpoint than a loan

• BETTER ASSET MANAGEMENT - Every firm wants to stay ‘leading edge ‘on asset acquisition, with respect to items such as computers or plant assets. At the end of the term of the lease the Canadian business owner or financial manager has a number of options available with respect to asset disposition

• OFF BALANCE SHEET FINANCING - Depending on the final structure of the lease a transaction can be recorded off your balance sheet – you are in effect using the equipment, gaining the benefits, but not owning the equipment.

Those are some of the more ‘technical ‘reasons for lease financing in Canada. Do the overall benefits of this financing alternative end there? They don’t! On balance the lease financing process is one of the simpler and easy ways to acquire assets – it also requires not large cash outlay, and your bank lines stay intact. Canadian business owners have huge challenges in maintaining bank lines that are adequate for their business – leasing alleviates part of that challenge.

What can be financed ? the better questions are of course a shorter answer – what can’t be financed. Almost any asset can be financing in Canada if its core to your business needs – That includes of course technology, vehicles, machinery, production equipment, tooling, telecom assets, agricultural assets, and construction assets. Again, to be clear, if it’s a hard asset it can be considered for lease financing!

As business owners in Canada we want the right equipment at the right time in order to stay competitive and profitable.

So, longer lasting a business concept than BITCOIN – The worlds newest internet currency . Time will be the judge, but we sure think so . And is leasing the only financing alternative available to the Canadian business owner or financial manager – definitely not. Should it be understood and considered? Definitely so! Seek out and speak to a trusted, credible and experienced Canadian business financing manager with a successful track record of asset finance solutions.


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 :

7 Park Avenue Financial = Canadian Lease Financing Expertise




CONTACT:
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