Equipment Finance Leasing In Canada : Behind The Scenes In Lease Finance & Asset Loans

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Will That Be Cash , Or…. Equipment Leasing? Making the Case For Leasing Asset Finance

OVERVIEW – Information on equipment finance in Canada. Lease finance is a solid alternative to term loans and leasing solutions have never been more abundant for businesses financing new or used assets

Equipment finance & asset loan solutions in Canada more often than not boil down to one basic question - Will that be cash .. or lease finance?!



Why do thousands of firms of all size in Canada continue to come back to this great method of financing their equipment, capital expenditures, etc? One of those reasons is simply that they need the equipment for increased growth and profits, and to remain competitive in their industry. Let's dig in.


Acquiring new equipment has a cost attached to it of course. Those capital budgets, whether your firm is large or small, can be a huge drain on your cash flow and working capital needs - cash flow and working capital that you would prefer to have on a daily basis.


Every firm has different reasons for Leasing in Canada. It's kind of the opposite of the old adage of buying on credit as a preferred option to cash . That adage makes less sense when considering new or used equipt options for asset that are expensive, and depreciate!


Different industries have different levels of capital intensity , and increased capital needs often force owners to raise additional equity . Lease finance allows you to conserve cash.. and equity !


For businesses that are in a competitive environment the focus is always on staying up to date with plant equipment, computers, software , etc ( By the way, software can be leased also!)


Numerous issues arise out of asset finance needs - They include budgets, cash flow challenges, miscellaneous related costs, etc.
Let’s look at a quick example: Let’s say your company needs an 80,000.00 piece of equipment for the manufacturing process. What are the options of the Canadian business owner and financial manager?


They are fairly obvious, so which one is best? The options are:

- Pay cash and reduce the company ‘ cash on hand ‘ on the balance sheet

- Draw down on the company line of credit - most firms today need to make maximum use of their working capital and cash is almost never in abundance

- Speak to your Canadian chartered bank about equipment loans

- Lease the equipment


Bank negotiations around term loans and loan covenants and approval times don’t seem to appealing . Lease financing becomes a very obvious first choice. The faster the new equipment arrives and proper lease financing put in place the faster you can continue to grow sales!


Seek out and speak to a trusted, credible, and experienced lease financing advisor and discover how those financing options can enhance your business!



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 10 years - Completed in excess of 100 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 & Contact Details :

http://www.7parkavenuefinancial.com


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 '


ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop