8 Reasons You Need To Know About Canadian Business Equipment Leasing Companies & Financing Providers

Over 80% Of All Canadian companies lease assets – Do you know why?



Information on business equipment leasing companies in Canada and what you need to know about financing providers to achieve true benefits of lease finance.




100% comfortable? We're talking about dealing with business equipment leasing companies and the financing of business assets. Equipment financing is simply a tool to achieve the acquisition of assets. Canadian business owners have different reasons to enter to an equpment lease finance transaction - those reasons might be cash flow oriented, tax oriented, or financial measurement oriented.

Let’s examine 8 key basics around which successful lease financing is based in Canada. Most business people appreciate the fact that leasing often covers off anywhere from 90-100% of the cost of the asset, but did you also know that numerous ancillary costs can be bundled into your transaction? They include delivery, installation, maintenance, warranty, etc. Those additional costs can add up.

Pick you term .That’s our # 2 reason. Prudent business owners and financial managers will give thought to the term of their lease, optimally identifying the useful life of the asset with cash outflows. In Canada typical lease terms range from 2- 5 years, shorter terms are almost impossible, longer terms are possible when the asset and credit quality of your firm permit.


Our 3rd Reason - simply flexibility around payments and your cash flow . Your monthly payments on an equipment lease can easily be structured into step payments ( paying more later ), skip or seasonal payments, etc. In business it's all about cash flow and cash flow benefits count big in Canadian equipment lease finance.


Reason # 4- Lease vs. purchase and cash flow considerations. The majority of business owners will find that if they run some analysis around their cost of funds as well as what they would be able to do with funds otherwise not spent on the purchase of assets . In the 2011 business environment rates are low and leasing is ultra competitive, so the overall rate environment simply enhances your lease vs. buy decision.


Reason #5 - loan covenants and financial measurements. Many Canadian businesses, especially those with bank financing in place may find it challenging to acquire assets without breaching loan and ratio restrictions imposed by the bank. Carefull structuring of lease transactions can eliminate this challenge. As well many firms measure their management and owners on financial criteria such as return on assets and return on equity. Business equipment leasing companies can help you win when these measurement scenarios are in place.

Reason # 6 - You can more often than not expect approval on a lease financing decision much more quickly than a loan or other type of financing solution. It is certainly very typical to obtain a full lease finance commitment within days of submitting a proper request (key word = proper).

Reason # 7- the ultimate value of your asset can be a significant financial benefit to your company. You might be acquiring assets that have a useful life beyond the term of the lease. This asset can be either sold or re financed at the end of the term, enhancing your firm’s cash and working capital.

Reason # 8 - The Paperwork. In general we can make the comment that documentation in Canadian equipment financing is efficient. Whether you have a master lease in place or if you are simply acquiring a small business asset lease docs are simple and easy to understand when you've dealing with business equipment leasing companies. In Canada the industry is broken down into small, mid and large ticket transactions. Small deals can be approved in hours, larger transaction takes a bit, but not a lot more time... again, if properly document and presented.

Speak to a trusted, credible and experienced Canadian business financing advisor on the benefits of dealing with business equipment leasing companies for financing of assets. It's clearly a win win scenario!



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/business_equipment_leasing_companies_financing.html

The Ten Advantages Of Using Canadian Business Equipment Leasing Companies For Commercial Asset Financing

What Are The Key Benefits Of Lease Financing & Funding For Canadian Business ?


Information on Canadian business equipment leasing companies and the advantages and benefits of commercial equipment funding and financing strategies.



One of favorite U.S. Business equipment leasing publications recently published a ' TOP TEN ‘advantages of leasing finance. But hey, isn’t this Canada? So we thought we'd address those top ten advantages in terms of the Canadian perspective of commercial leasing companies that provide Canadian owners and business financial managers with hundreds of millions of dollars in asset finance.

So let’s try and ' Canadianize ' those advantages in terms of business leasing in Canada. Here we go.

#1 - Cash - You'd prefer to keep it, but unfortunately you need to spend in on new or upgraded assets to your business. And that includes everything from plant assets to new computing power. Utilizing lease financing lowers your cash outflow and often lowers the requirement that other lenders such a as a bank might demand for you with respect to additional equity in the transaction.

# 2- Cash flow management - Many Canadian business owners and managers don’t often realize the flexibility they have in structuring a transaction with respect to the tax aspects of the lease, as well as your ability to structure seasonal, quarterly, or some other form of payment structure that makes sense for... you guessed it, your firm.

# 3 Your ability to decrease financing costs with commercial equipment leasing allows you to utilize those savings for other things - a good example is your potential new found ability to take discounts on vendor payments to your valued suppliers . Using cash to take 2%10 type discounts could save you thousands of dollars every year, depending on the size of course of your company .

4. Our U.S. example that we are referring to listed ‘bank hassles’ as another great reason to consider lease asset financing. We're certainly not sure that going to a Canadian bank is really a ' hassle ' but we are the first to admit that many of our clients can meet stricter bank credit covenants and criteria - As a result Canadian business owners and their financial managers find that there are hundreds of aggressive lease finance firms who actively solicit their asset financing business - And that’s a good thing!

#5 - Leasing productive assets improves productivity and can assist in lowering general overhead costs. Although technology investments in plant, rolling stock, software (yes, software can be fully financed!) and computing can be huge competitive drivers in your business.

# 6 - Leasing epitomizes your ability to upgrade and be flexible and acquiring assets. Using such strategies as an operating lease allows you the benefit to return, upgrade, and purchase or extend key assets in your business.

#7 - Debt may be expensive, but anyone will tell you equity is even more expensive. Leasing assets can often help you avoid equity dilution in considerations such as bring in other ownership capital or partners in the business?

#8 We’ve observed that many small and medium sized businesses finance their businesses in part by business credit cards and small lines of credit. Utilizing asset lease finance allows you to keep those arrangements intact and current.

#9 There are a number of significant depreciation and tax benefits that Canadian accounting allows when you consider business equipment leasing companies for your commercial asset needs.

# 10 - It works - most of our clients have determined that their bank won’t lease the assets they need to run and grow their business. It’s easier to apply for and in many cases vendors and distributors offer preferred financing for customer choosing to utilize commercial lease strategies.

So there you have it, our Canadian TOP TEN ADVANTAGES of equipment leasing in Canada, with due respect to our U.S. counterparts. Want to maximize on any or all of these advantages? Speak to a trusted, credible an experienced Canadian business financing advisor who can help you with commercial lease financing.



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