This Day in Canadian Business History - April 4 :
Canada agrees to acquire the Canadian section of the Alaska Highway, including telephone systems, buildings and other assets, for $108 million (1,221 miles at $88,000 a mile); 2,450-kilometre highway originally cost US$140 million to build, as a wartime supply route in case of Japanese invasion of North America.
Our thoughts ? ' What a Deal from a financial perspective! ' Ultimately of course there was a supply route invasion of Canada but it consisted mainly of LCD screens .... Stan Prokop
Conducting Lease Transactions in Canada – Bridging the Asset Gap
Information on asset lease financing in Canada . Capital and operating financial solutions provide the bridging you need for short term and long term fixed asset finance needs .
Scientifically proven? It's defined as a ' body of techniques’ for acquiring new knowledge. Unless we're missing something an asset lease is a trusted financial solution, bridging your operating capital needs to your long term financing solutions.
Whether it’s an operating lease versus a capital lease your company still benefits from the appropriate combination of use and to a certain degree, ownership.
So why does a lease finance solution allow you to reduce the consumption of capital. Simply speaking you can direct funds required to buy assets towards more important things, such as growing your business, expanding your products and services, etc.
When you choose between an operating lease ( using ) versus a capital lease ( owning ) it comes down to two basic criteria for final approval - the value and quality of the asset , as well as of course your firm's general credit worthiness.
The great news for Canadian business owners and financial managers is that leasing companies and solutions abound! They are provided by bank subsidiaries, independent commercial finance firms, and captive finance organizations of larger manufacturers. (In general you can’t beat vendor/captive financing for rates, terms and structures - simply because the finance arm is incented to approve and finance your asset based on the sales focus of the mfr itself).
Depending on what industry you are in you might well find that certain lease firms and solutions are more appropriate than others. Technology, computer, software, and telecom type assets lend themselves perfectly to be financed via firms with that special tech experience. More often than not you will, or in fact should, consider an operating lease for these types of assets.
What then are the key questions or issues that you should address when considering an asset lease, or utilizing this financing tool as a bridging solution... for example a sale leaseback ?
The key considerations are your expected term under which you believe you will use the asset. (3 and 5 year terms are most typical - however 2-7 year terms are available depending on asset type).
Capital or operating leases work best when they are part of an overall strategy. Your company will derive maximum benefits when you consider several issues around your asset or bridging needs - they include tax implications, how you will account for your lease, your future needs for the type of equipment you are acquiring, etc.
The Sale leaseback scenario is a great bridging strategy for financial solutions. It takes your current investment in assets and monetizes them, giving you critically needed capital.
Can leasing ever be a poor choice? Perhaps, but certainly not often. The weight of evidence, scientific or otherwise! suggests that this financing tool gives you maximum leverage in asset lease finance. If you're looking for more information and expert advice on lease concepts speak to a trusted, credible and experienced Canadian business financing advisor.
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/asset_lease_operating_capital_financial_bridging.html
