Getting The Most Out Of Canadian Lease Pricing and Best Lease Rates?

Tweet

Here’s How Capital Equipment Finance Works
Canadian Lease Financing – Rates and Terms

Information on capital equipment financing in Canada . How can Canadian firms attain best lease rates and lease pricing that is attractive for asset acquisition finance strategies

How can we get the most out of lease pricing, including by the way getting best lease rates in Canada what we access capital equipment finance via an equipment finance strategy? That’s a typical client question and we'll explore some answers, tips, and strategies in that area.


If there is a threat or disadvantage to equipment financing in Canada it’s a pretty simply one - being unaware of what areas can impact the advantages of a lease, for example a simple ' end of term ' option.


We wouldn’t want to count the probably thousands of firms in Canada, both small and large that fail to both understand, and then invoke their financing option when the lease ends. Ironically the more sophisticated and larger corporations in Canada even do worse on this one simply because they are too big and their systems ' forget ' whats going on within the tens or hundreds of equipment leases they manage.


So how can an end of term option be costly ?You quite frankly wouldn’t believe it, but the reality is that many leases are structured , and documented, by the way to make your firm keep paying if the notice or obligation you signed up for isn’t handled properly .


So by not returning, buying, or formally extending a transaction you are now in the position of pretty well ‘paying forever’. And that’s not a good thing. Imagine leasing, for example, a 25k large document copier or some other business asset, paying for it in full of 5 years, with interest of course, and then paying for it again. Wow! Oh, and by the way, that asset has depreciated and has been replaced by newer technology. Now how do you feel?


In Canada the Canadian capital equipment finance industry, the ' lessors ' are in a position to offer you a variety of pricing options. It is that variety of options that can really confuse Canadian business owners and financial mangers.


You can simply lease pricing in Canada , and achieve best rates at the same time by doing some basic homework around the two types of leases , capital ( aka lease to own ) and operating ( aka lease to use ).


If you are looking to finance assets that depreciate quickly or must constantly be upgraded to keep you company ahead of the curve then an operating lease strategy really works - Computers and computer systems are a classic example of a solid use of an operating lease . The benefits include lower monthly payments, return and upgrade flexibility, and your ability to simply replace the system or technology at the end of term. That’s when best lease rates are truly achievable when compared with lease to own type strategies.


Simple lease finance strategies can also lower that monthly payment - they might include a bargain purchase options at the end of the lease, which simply lowers your monthly payment and allows you potentially to refinance that end of term amount later on.


In Canada your interest rate on lease financing is determine by your firms credit quality, as well as the type of asset you lease, and who you are dealing with. The industry is very segmented and fragmented, so the right lessor as a partner can save you thousands of dollars over the term of a financing relationship.


To achieve best lease pricing, as well as terms, speak to a trusted, credible and experienced Canadian business financing advisor who can help you maximize the benefits of this powerful capital equipment finance strategy used by thousands of business owners everyday.

7 Park Avenue Financial :

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
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

' 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

Looking For Best Equipment Lease Rates In Canada . It’ About ‘How ‘to Get Them, Not ‘ Where’ When It Comes to Leasing Companies

Expecting The Best Lease Finance Rates In Canada . Here’s How!


OVERVIEW – Information on how the Canadian business owner/manager can achieve best lease rates from leasing companies in Canada when arranging equipment and asset acquisitions.



Here's where you are going wrong. When Canadian business owners and financial managers focus on getting the best lease rates from equipment leasing companies, they are focusing on ' where ‘... not ' how'!

The reality is that the current Canadian landscape is very competitive when it comes to delivering solid asset financing solutions to your firm and industry. So ‘creditworthy’ firms (hopefully yours?!) can expect and demand solid interest rates based on their own particular credit quality. So the thing you are probably working hardest to find is already there.

What is critical though, and often missed by the business owner/ manager is in fact how that rate is delivered in terms of structure, documentation, hidden fees, and the quality of the firm you are dealing with . When you master those you have achieved leasing Nirvana in Canada!

We continually remind clients that in fact your lessor has actually borrowed the money also, so they are focused, and it’s reasonable to assume- all the time, on maximizing the mark up in your transaction. Because that mark up is your profit.

Many lessees (that’s you!)don't know they can easily calculate the lessors profit on your transaction. How? Because the elements of any equipment lease in Canada are term, interest rate, monthly payment, value of the deal, and end of term obligation. Typically you are given all of those, except the rate! So by simply using a financial calculator you're in a position to determine the actual rate you are charged.

Often the most important part of your equipment lease is in fact the final payment. Why? Because it is at that time that it is determine what you signed up for in the documentation of the lease. And if you have entered into the wrong type of transaction (yes ' IT' happens) the actual residual value of the asset becomes the largest part of the profit component of your lease.

The above scenario is particularly true when it comes to your choice of type of lease, capital or operation. If you have chosen a fair market value, aka ' operating lease ' you is in fact obligated to return the asset to the lessor. And they then sell it to further increase their profit on a transaction.

Many business owners are to say least, surprised, you may say dumbfounded when it comes to being told they either have a very low or even 'negative' interest rate in their operating lease overall rate. Why? As we said the lessor is banking on making their profit a few years from now when you are obligated to return the asset.

By the way, don’t get us wrong, in many environments the operating lease is one of the best solutions in town when it comes to financing technology assets such as computers, telecom assets, etc. That’s because those assets are traditionally worth a lot less, sometimes even close to zero, when it comes to economic life/value. So if the lessor wants to take that risk off your back... let them!

One final point on operating leases - if you know what you are doing you'll construct your obligation so that the choice at the end of the term allows you to make the decision to buy, return, or extend the lease. All of those options are available to you, you just didn’t know it. Even worse, you weren’t told. Must have been a slip up, right?!

Our point today, simply that your credit quality and actual interest rate are pretty well predetermined in today’s competitive equipment leasing marketplace. Dealing with the right firm, and understanding the documentation you enter into is key to asset financing success. Focus on ' how' not ' where '!

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor on equipment finance solutions that work... in your favor!

Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Getting The Most Out Of Canadian Lease Pricing and Best Lease Rates? Here’s How Capital Equipment Finance Works

Canadian Lease Financing – Rates and Terms



Information on capital equipment financing in Canada . How can Canadian firms attain best lease rates and lease pricing that is attractive for asset acquisition finance strategies.



How can we get the most out of lease pricing, including by the way getting best lease rates in Canada what we access capital equipment finance via an equipment finance strategy? That’s a typical client question and we'll explore some answers, tips, and strategies in that area.

If there is a threat or disadvantage to equipment financing in Canada it’s a pretty simply one - being unaware of what areas can impact the advantages of a lease, for example a simple ' end of term ' option.

We wouldn’t want to count the probably thousands of firms in Canada, both small and large that fail to both understand, and then invoke their financing option when the lease ends. Ironically the more sophisticated and larger corporations in Canada even do worse on this one simply because they are too big and their systems ' forget ' whats going on within the tens or hundreds of equipment leases they manage.

So how can an end of term option be costly ?You quite frankly wouldn’t believe it, but the reality is that many leases are structured , and documented, by the way to make your firm keep paying if the notice or obligation you signed up for isn’t handled properly .

So by not returning, buying, or formally extending a transaction you are now in the position of pretty well ‘paying forever’. And that’s not a good thing. Imagine leasing, for example, a 25k large document copier or some other business asset, paying for it in full of 5 years, with interest of course, and then paying for it again. Wow! Oh, and by the way, that asset has depreciated and has been replaced by newer technology. Now how do you feel?

In Canada the Canadian capital equipment finance industry, the ' lessors ' are in a position to offer you a variety of pricing options. It is that variety of options that can really confuse Canadian business owners and financial mangers.

You can simply lease pricing in Canada , and achieve best rates at the same time by doing some basic homework around the two types of leases , capital ( aka lease to own ) and operating ( aka lease to use ).

If you are looking to finance assets that depreciate quickly or must constantly be upgraded to keep you company ahead of the curve then an operating lease strategy really works - Computers and computer systems are a classic example of a solid use of an operating lease . The benefits include lower monthly payments, return and upgrade flexibility, and your ability to simply replace the system or technology at the end of term. That’s when best lease rates are truly achievable when compared with lease to own type strategies.

Simple lease finance strategies can also lower that monthly payment - they might include a bargain purchase options at the end of the lease, which simply lowers your monthly payment and allows you potentially to refinance that end of term amount later on.

In Canada your interest rate on lease financing is determine by your firms credit quality, as well as the type of asset you lease, and who you are dealing with. The industry is very segmented and fragmented, so the right lessor as a partner can save you thousands of dollars over the term of a financing relationship.

To achieve best lease pricing, as well as terms, speak to a trusted, credible and experienced Canadian business financing advisor who can help you maximize the benefits of this powerful capital equipment finance strategy used by thousands of business owners everyday.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


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