Ready To Save Save Thousands? Here’s How When Utilizing Lease Financing & Equipment Finance Strategies
OVERVIEW – Information on solutions offered by equipment lease companies in Canada. Lease financing solutions , structured properly can save your firm thousands of dollars when you’re acquiring new or used assets
Lease financing solutions help resolve the financial conflict that comes about when your firm wrestles with the balancing act that comes out of acquiring new or used assets. But how does the owner/financial mgr know how to manage this process, much less locate the best financing company to do business with? The maze of what is known as equipment financing in Canada. We've got answers, so let's dig in!
When business folks think of ' saving '... it's really simply the act of managing a resource such as your capital and putting it to work in the best manner
But do you have to give up something to get a solid equipment financing approval with a structure that makes sense to your company. We don't think so, and we will show you how to navigate, successfully!
Top experts remind us that the best way to be successful in achieving the benefits that lease financing bring to the table is to simply ' visualize ' them. More often than not in lease financing you are focusing on getting a return on investment on your acquisition, and structuring it financially in a way that makes sense.
Can you, as we maintain, save thousands of dollars on an equipment lease when you ' do it right'? We believe you can. But first you have to focus on ‘why’ you’re financing the equipment and why certain lease companies in Canada may or may not be your best bet when you finance.
You finance equipment for some very basic reasons - lets cover them off... and we get rid of the most boring one first, accounting! The accounting treatment of a lease is very important and often misunderstood or not properly address when we discuss the issue with clients. For instance, if you can keep the lease off balance sheet you have just delivered a greater return on asset value to the owners or shareholders of your firm. That's a key measurement used by owners, lenders and investors when they look at your firm.
If you firm are capital driven, i.e. asset intensive, meaning you need lots of capital to run your business then structuring the right type of lease will have immeasurable positive effect on your performance and operating ratios.
Many operating lenders structure your credit agreements around your ratios, and properly handled and accounted for leases can be a real positive in this regard.
Financial and cash flow reasons also drive business behavior when lease financing in Canada. It's all about:
Working Capital Preservation!
Even negotiating a lower down payment or a higher balloon payment at the end of your lease can save you many thousands of dollars, depending on the size of your transaction. Those savings can be re invested into the company to generate further sales and profits.
Have you made the mistake of acquiring technology on a lease and then having to write down the book value of the lease half way through the transaction when you have just discovered, surprise, surprise! That your technology is now obsolete!
Matching the tem of the lease with the useful economic life of the lease can save you thousands in potential equipment write downs in the technology area - think computer investments, telecom systems, etc.
We hate it, but most of our clients are focused on only one thing, which is the proverbial lease rate. Unfortunately equipment lease companies in Canada know this and can do a real number on your firm when it comes to camouflaging the true rate in a lease - this is done by quoting you payments calculated in arrears, getting first and last payments in advance, increasing the size of a security deposit, or charging you per diem rates for project type financing when leasing is required.
Got all the time in the world? Then investigate every nuance of Canadian lease finance and try and address all of those issues and strategies.
A better answer? Speak to a trusted, credible and experienced Canadian business financing advisor who will structure the right lease that focuses on benefits that are real to your firm, saving you thousands in the process. That's a solid plan to save money!
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 100 Million $ of financing for Canadian corporations
7 Park Avenue FinancialSouth 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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