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The Rise And Fall .. And Rise Of Equipment Leasing in Canada!
OVERVIEW – Information on basic financial fundamental reasons why Canadian business owners and financial managers choose lease equipment financing as a great financial strategy for new equipment, technology, etc , including examination of key benefits for business owners and financial mgrs
Equipment lease financing in Canada has business owners and financial mgrs constantly coming back for asset acquisition alternatives.
So as business credit continues to always be a challenge it's no secret that equipment loan needs are on the rise. Simply speaking itsone of the best alternative methods of acquiring equipment in a very cost effective manner!
We use the term equipment, but let’s be clear that that term includes every business asset you can imagine for Canadian business needs - that includes
Construction equipment
Airplanes!
Computers
Telecom assets
Software (Yes Virginia software can be financed!)
Plant machinery and equipment
Bottom line: virtually any asset you can utilize in your business.
For many of our customers it's all about a ‘competitive 'lease rate (well actually they ask for the best rate!) but we often point out that while every customer is due a competitive rate based on their overall credit quality, it is equally as important to ensure you have the right type of lease selected, the right term or length of lease, as well as the expertise in structuring your lease along the lines of your business model and financial and cash flow needs.
Example: A ' seasonal ' businesses - that isn't necessarily related to the weather all the time, it’s just the ebb and flow of their particular industry, for example a wholesale that has huge orders and contracts from a major retailer at Christmas time, etc.
Our customer are often surprised at the nuances that we can structure in a lease, such as seasonal payments, quarterly payments , sometimes even annual payments . In most cases it is not uncommon to finance all the taxes, plus the installation and maintenance relating to the equipment. (Think computing technology or sophisticated shop floor equipment).
Our customers know they have a need for the equipment. What they want is of course the equipment and the ability to preserve their capital, either their cash on hand or working capital by way of their bank operating line or asset based lending facility.
There are many financial/accounting advantages to business leasing. Lease payments more often than not are tax deductible, so they have further advantages over term loans obtained via banks or other financial institutions.
Key point: It's always good to do some solid lease versus buy versus loan analysis to determine what the right way to acquire a business asset is.
SUMMARY: there are financial benefits and overall business benefits based on the proper use of leasing. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset purchase needs. That’s a winning Canadian financing strategy!
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 Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
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
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