Let Equipment Financing Remove The Need To Juggle Asset Acquisition Needs

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Need New Assets Or Technology To Run & Grow Your Business ? Tried This?

OVERVIEW – Information on equipment financing in Canada. Using strategies such as the sale leaseback and lease financing in general businesses can acquire assets they require to grow sales and profits

Equipment financing provides an ultra solid solution for companies that require new assets and technology. One way to achieve cash flow nirvana is to refinance assets you already own under a sale leaseback strategy. Let's dig in.

Simply speaking you use unencumbered assets in your business to generate additional cash flow and in some cases enhance your financial statement metrics as well as potentially positively having a positive impact on taxation and profit of your firm. Talk about a win win.

Let's talk a bit more about those 'motivations ' for considering the strategy. Your firm is of course in business to earn a profit you're you and your other shareholders. When you take debt of your balance sheet your profits become greater, because they are a larger percentage of your total assets.

The arithmetic is quite simple, your earnings divided by your asset base - when assets are taken off your balance sheet by the sale leaseback strategy ( remember, you have sold the equipment to the lease company but of course you still use the asset ) your ROA - known as return on assets is magnified! That's a good thing!


What is another motivator to consider such a transaction? If you have traditional bank lines of credit and term loans, attached to those arrangements are the ' covenants ', or promises you made to the lender with respect to certain rations of debt and operating ability. Many of these ratios 'magically' improve once you have completed your sale leaseback strategy, because debt has gone off your books.

There are two essential types of business equipment financing in the leasing world - capital leases, and operating leases. Operating leases are generally utilized by firms that have a bit more financial sophistication. You don't own the asset, but you are using it for economic benefit. You probably don't ever intend or desire to own the asset. So how does this information relate to our sale leaseback strategy?

Cash your company receives from a sale leaseback is new cash that you will invest in hopefully other growth opportunities for your firm. In some cases you can now actually refinance old loans at a better rate, which is also financially advantageous.

In lease financing your ability to properly control and minimize cash outflows is what asset financing/refinancing is all about!

In summary, sale leaseback strategies, while a bit specialized, can be very powerful if you are looking for additional cash flow, have balance sheet issues, or concerns about asset obsolescence and replacement. Seek out and speak to a trusted credible and experienced business financing advisor. Sale Leaseback financing - Think about it!







7 Park Avenue Financial :

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

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

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