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Lease Financing Isn't As Exciting As Watching Dog Surfing Videos.. But ...
Information on lease financing solutions in Canada. Understanding asset finance will bring the best rates, terms, and structures that match your asset acquisition needs
– Canada continues to view this aspect of asset financing as critical to Canadian business success . Lease financing provides a large number of ways in which Canadian business owners can acquire plant equipment, technology, software, and rolling stock. These assets enhance your business and allow you to use precious working capital in other aspects of your business.
Canadian business owners and financial managers more often than not know the key benefits of lease financing – the challenge in Canada simply becomes:
-What lease financing product is best suited to my firms needs?
-Who do I talk to, in an effort to understand how I can achieve my equipment financing goals?
Proper utilization of lease financing allows your firm to access capital that otherwise might be unavailable or difficult to obtain.
Is leasing a simple, basic business transaction? Well yes, kind of – but it requires that you understand what risks comes with structuring a proper lease transaction, and ensuring you maximize the benefits of this ‘smart ‘financing.
No one can be expected to understand all aspects of business financing. Equipment leasing and financing is specialized. We urge clients to ensure they work with a trusted, credible and experience lease advisor – by doing that they will streamline approval times, save you hundreds of many thousands of dollars in rate and structure, and ensure that you get the approval you deserve re final amount approved, a competitive rate, etc.
Want some great advice on getting your lease approved? It’s as simple as:
Presenting your company properly in the correct financial light
Understand what equipment you want to buy and why
Work out what a desirable monthly payment might be for the asset , including your estimate of its useful life
Clients are always happy to hear that 99% of the time lease financing has no restrictive covenants. A proper lease application will ensure that it covers your long term goals re the particular asset you are financing.
Canadian firms lease for the following inherent reasons –
Leasing is an alternative financing option that leaves other sources of capital alone
It is convenient when measured against bank or term loan financing requirements
It allows you to control risk in asset acquisition
It has significant tax advantages
We have focused very clearly on the fact that as a business owner you need to understand the full lease offering, and determine which benefits you wish to maximize, and what risks you wish to control. A benefit might be a simply payment structuring that suits your cash flow seasonality - a ‘ risk’ avoidance might be employing and operating lease structure for a new computer acquisition …– why ? Because you want to use a computer, you definitely don’t want to own it. (Computers depreciate quickly!)
Will lease financing always be the ‘lowest cost ‘method of acquiring assets. Not always, but many times it will – you simply need to know how to analyze those costs by taking into account the right comparison – i.e. lease versus loan, your cost of capital , and having a general knowledge of what market rates are for your firms overall credit quality
In summary, lease financing is a growth stimulator for your firm and in fact the overall economy. Lease financing can be complex only if you don’t understand the offerings, benefits, and some of the associated risk. Work with an experienced and credible advisor in this area to maximize the true benefit of lease financing in Canada.
7 Park Avenue Financial :
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
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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