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

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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 Oh, and by the way, that asset has depreciated and has been replaced by newer technology.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

Capital Equipment Finance Choices In Canada. Should You Lease Or Buy ?

Your ‘ Taxing Questions ‘ Answered On Equipment Leasing In Canada


Information on capital equipment finance solutions in Canada . The lease or buy questions when it comes to business asset finance should be addressed in this manner.




Capital equipment finance choices in Canada. One of the basic issues often simply is ' Should the business owner lease or buy ' business assets, and if they choose ' finance ' why is equipment leasing a suitable and recommended options?

There are really 3 key concepts when it comes to deciding whether leasing or outright purchase is the way to go when it comes to financing your firms fixed assets. The 3 areas you should focus on are:

Managerial Issues

Accounting and Financial Issues

Financing and Tax Issues



When you have a handle on those three you’re poised for business asset acquisition success!


The financing and tax issues are quite often perceived as the most important buy the Canadian business owner and financial manager. They are concerned with things like the financing rate within the lease (we believe that is often the least important in most cases as your credit quality will always give you a ' competitive ' rate), and the way the lease is shown on their books for tax and accounting reasons.

You should always know, and consider what type of lease you actually need, or want to enter into. In Canada it comes down to operating versus capital leases, and not all business owners are aware of the nuances of each.

When we talk to clients the simple way we describe an operating lease is simply to suggest that the client view this finance as simply an asset that is on rent. The rental payments are of course expensed , and in the old days a significant amount of emphasis was placed on your firms ability to ' hide ' the transaction off your balance sheet, thereby improving a lot of the equity and operating rations that lenders and investors look at .

Unfortunately, with a lot of the new accounting rules that particular one benefit has diminished, but the reality is that operating leases for assets such as technology and heavy equipment are as popular as ever. Payment tend to be lower ,and the flexibility of having 3 choices at the end of the term of the lease is perceived as positive by companies that are capital intensive when it comes to both technology or heavy equipment, our two chosen examples .

Oh, and by the way, those 3 choices..? They are your ability to purchase the asset at the end of the lease, return it, or extend /upgrade the asset. Talk about financing flexibility!

Your firm might choose a capital lease when it comes to your firms desire to own, rather than ' rent ' the asset. These leases are non cancelable, might have a higher payment attached to it because of your ownership right, and this type of lease has to satisfy several accounting criteria around ownership, useful life, and financing charges.

The managerial issues around capital equipment finance tend to revolve around flexibility of financing, technology obsolescence protection, and your ability to access other sources of credit other than ' the bank '.

Not every finance solution in Canada is perfect for all situations. Some Canadian businesses associate leasing with a higher cost, and they don't necessarily want another firm or institution to benefit from the residual value of the asset in question. They want that profit for themselves!

We always encourage clients to talk to their tax person or accountant when it comes to tax avoidance via leasing ( that’s avoidance , not evasion by the way !) , accounting treatment, expensing payments, etc.

If you have properly addressed the ' lease or buy ' decision in Canadian asset acquisition consider speaking to a trusted, credible and experienced Canadian business financing advisor who can assist your with the proper financing of your transaction,

7 PARK AVENUE FINANCIAL
CANADIAN CAPITAL EQUIPMENT FINANCE EXPERTISE



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/capital_equipment_finance_lease_or_buy.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