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OVERVIEW – Information on equipment financing in Canada . The ability to benefit from using lease finance to acquire new ( and used ) assets to grow business is key to long term success
Equipment financing in Canada is both wanted... and needed. As the Canadian economy continues to improve your business has the need for new or replacement equipment.
How do you do that efficiently, economically, and cash flow smart? Finance those new assets! Let's dig in.
Pretty well every asset can be financed.
Computers ('Information technology" 'IT ‘)
Plant and production equipment
Software - (Yes, software!)
Rolling stock - i.e. trucks, trailers, etc
Specialized Equipment
Etc! Emphasis on Etc!
So what lease partner should you deal with?
Many of our customers focus on 'rate ', or in effect the price. It goes without saying that your firms want a competitive rate, and clients are surprised when we say they get to pick their own rate! What do we mean by that? We simply mean that your company's overall credit quality will always determine the rate and structure and term of the lease. However, in order to achieve that best rate or ' pricing ' you need to ensure your company is presented in the best light possible.
The right lease advisor/partner will allow you to reap some, or all of the following ten benefits:
Conserving cash
Cash flow predictability
Ability to use cash for more pressing current liabilities
An alternative to ' the bank'
Letting new assets improve your processes/production
Flexibility re adding on, upgrading, trading in
No equity give up
Allows your other borrowings to stay current
Reap the accounting benefits - i.e. depreciation, etc
Stay competitive with what your competitors are doing
How is lease approval decisions made? No one factor determines an equipment lease financing approval. It's quite frankly what our firm likes to call the 'weight of evidence '. That simply means that several key factors such as your financial statement health, the current state of your industry, the asset quality, and your ability to demonstrate re payment are the key factors in any lease financing approval.
But wait - there's more!
1.You don't have to be an established business - lease financing can be for a start up or emerging company also
2. Your equipment doesn't necessarily have to be new, it can be used if you can demonstrate its value and that it has been maintained and still has a useful economic life
3. You might already own an asset - let's say it is not financed, you can lease it back to the lease firm and generate cash flow and working capital from that transaction!
4. Banks in general in Canada do not provide lease financing - two of the Canadian banks have lease financing operations but credit quality must be quite good to achieve bank type lease financing
5 . Being declined does not necessarily mean that you can't get the equipment financing - we simply re structure the transaction to meet the approval criteria - that might mean a simple restructuring of the lease
Seek out and speak to an equipment finance expert!
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
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
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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