Tweet
Information on equipment financing in Canada. Having access to capital for equipment loans and leases is critical to long term business success
While trying to achieve the best pricing in their negotiations with vendors business owners at the same time want to know they can preserve their capital, cash flow, and operating capital - lease financing does exactly that.
This type of business financing in Canada is an alternative to a cash purchase or a loan from a Canadian chartered bank. Clearly a win / win scenario is achieved when a business owner can acquire the information he needs, while at the same time achieving a solid financing structure around that acquisition.
Business owners can count on a number of sure fire benefits associated with the lease financing of equipment – those benefits may differ for each firm relative to their importance. However, more often than not they include the following:
Canadian firms want to use assets to generate profits and sales – they don’t want to invest hard earned cash into depreciating assets
If there are tax advantages to an equipment finance transaction they want to utilize or benefit from them
If payments can be structured to suit the overall cash flow needs and working capital of the firm that is a beneficial option
Budgets can often complicate equipment acquisition – business owners in Canada want to know them can circumvent a budget timelines or financing amount with an effective acquisition strategy
Applying for a term or bank loan can takes weeks and months, lease equipment financing can often be approved in a matter of days based on the overall credit quality of your firm and the asset type
Lease equipment financing is complimentary to your current secured lenders or bank operating facilities – they round out your ability to get additional assets and capital
The one thing you don’t want your acquisition needs to do is to restrict your overall cash flow and working capital position. That’s why we recommend you sit down with a trusted, credible, and experience advisor in lease equipment financing in order to assess your overall asset acquisition capabilities, as well as the benefits you can derive from utilizing this financing tool.
The reality is that every type of asset in Canada can be financed, so being for armed with that knowledge can greatly enhance your overall competitive financial position.
Clients often ask us at which point in the business cycle is they eligible for lease equipment financing. Some first are start ups, some are early stage, and in many cases they are mature companies with a growth and track record. The reality is that lease financing applies to all these types of firms.
Quite frankly the true challenge in leasing simply knows what cash flow benefits you can derive from the acquisition. It is important to structure a transaction that matches the appropriate rate, term and overall lease type that you are looking for. There are actually two major lease types, lease to own, called capital leases, and lease for use, more commonly called operating leases.
Investigate financing for equipment options. Work with a credible advisor. Decide which benefits works most for your firm, and structure a transaction that makes sense and maximizes your ability to grow revenues and profits.
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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 .
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
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.