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Monday, April 7, 2014
The Finance Lease Company Solution: Problem Solved When It comes To Asset Finance Leasing In Canada
Birds Of A Feather Asset Financing Solutions In Canada
OVERVIEW – Information on solutions offered by the finance lease company in Canada. Asset financing via leasing , or a bridge loan or sale leaseback is a cash flow savior for the majority of businesses in Canada
The finance lease company solution in Canada is a classic ' birds of a feather' scenario. Why that analogy? It's the business version, we think of ' attraction' as Canadian business owners and financial managers steer towards asset financing and leasing as the logical ' attraction' to their asset acquisition strategies. And in this case it's also pretty close to a ' one size fits all' solution. Let's dig in.
The need to acquire new assets for any business comes from both necessity as well as opportunity. The business owner/ financial manager always needs to constantly assess new equipment needs, which these days many times includes technology assets - i.e. computers, office pc's, software (yes, software can be financed!), etc.
Canada's current economic climate lends itself perfectly to asset financing .The interest rate environment is favorable, competition for your financing abounds, and growth opportunities are everywhere.
Simply the fact that technology changes a lot these days is one solid reason to consider leasing equipment - and we advise clients on numerous other benefits also. It's all about growing and Return on Investment.
Financing assets is more of an intermediate to long term solution for your business.
What factors then come into the ' lease versus buy ' decision? Top industry experts tell us that the following issues should come into play:
- Assessing the ability of new assets to make your business more competitive and simply run better
- Assessing long term growth plans
- Ensuring that assets financed are critical to your business needs
- Competitive stance
One solid aspect of leasing assets in Canada is simply the new found ability to match equipment needs to your overall financial strength and ability. In some cases lower or flat sales and profits might force the owner/manager to reconsider new assets if in fact they felt they could not sustain payment commitment for those assets. The irony is that new assets or technology can often grow and increase sales revenues, allowing firms to deliver more new products, service, take on larger contracts, etc.
Financing new assets often boils down to ensuring you have the ability to service the debt you are taking on to acquire new assets.
We make it clear to clients that the finance lease company is not the only solutions to asset acquisition. Other methods include term loans, bridge loans, renting assets, etc.
But the ' key benefits' of leasing are always there - they include:
100% Financing
Easier credit/finance approval
Flexible payment options
Ability to consider upgrading or replacing during lease term
Numerous lease term and amortization options
In some cases business owners might want to consider operating leases as a solid asset finance option. Despite major changes in accounting policy throughout the word utilizing operating leases is still a solid strategy. You achieve the benefits of using equipment, without owning it - and a lot of flexibility comes with that solution.
Are you working in MUSH? That’s the term the lease experts use to describe ' municipalities, universities, schools and hospitals ‘Even these bodies can properly utilize lease strategies. Here the benefits are crystal clear - the lowest finance rates, payment flexibility relative to budgets, etc.
If you want to consider new assets as a solution, not a problem, seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in lease finance strategies that make sense for your company’s current situation.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :
7 Park Avenue Financial = Canadian Equipment Leasing Expertise
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7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
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