Reasons to Finance (Not Purchase) Equipment

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We are continually told there are significant benefits to lease (finance) equipment purchases in a business. Let's examine some of those benefits.

Economic stat's tell us the equipment leasing and financing in Canada and the U.S. totals Billions of dollars. Historically almost 1/3 of all equipment has been financed, not purchased. We will look at some of the true benefits of leasing - every benefit many not necessarily accrue to every firm who finances, but many will, and the business owner or financial manager should understand how his firm can benefit from this financing strategy.

When we break down the benefits of leasing into a large number of single positive points we find that these benefits can be simply grouped into a number of key categories. They are as follows:

*Business in general find it easier to account for leases - payments are fixed

*Leases can be structured to have the business own or not own the equipment at the end of the term of the lease

* Many businesses are either incapable, or do not choose to address the technological aspects of the equipment they are financing - Leasing gives them maximum flexibility in that area. For example a company leasing technology generally wants to use the technology, which evolves. It does not wish to purchase or lock into ownership of technologies that are evolving. Think computers!!

* Lease financing has maximum cash management flexibility - payments can be tailored with longer amortizations, seasonality according to the customers business, fixed regular payments ( term loans tend to have variable, not fixed rates ) etc.

* Budgeting: More often than not this is usually the main reason most customers give for financing equipment - the financing provided during the leasing exercise allows the company to potentially acquire more equipment than it might have in a straight ' purchase' scenario. In many cases little or nominal down payment is required. The vast majority of customers also pay the taxes on the equipment and maintenance via the fixed monthly lease payment. Companies that are either growing quickly, or in some cases are having some level of financial challenge will always tend to gravitate to the leasing solution.

Lease financing has always been perceived as a strong financial acquisition alternative. In the economy of 2017 where ' cash is king ' alternative financial such as the lease option is a strong


Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com The company originates business financing for Canadian companies,specializing in working capital, cash flow, and asset based financing. In business 6 years the company has completed in excess of 45 Million $ of financing for companies of all size. For info on Canadian business financing and contact details see:

http://www.7parkavenuefinancial.com/toronto_ontario_equipment_financing.html



7 Park Avenue Financial :

South 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

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 .

' 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

















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


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