Untangling Biz Financing Via ABL Capital . Overcome Business Line Of Credit Finance Hurdles !

It’s Changing Times In Business Finance . Here’s One Reason Why !



Information on accessing ABL capital in Canada . Let the asset based business line of credit help you untangle the biz finance maze



Is ABL capital a solid or maybe your ‘best choice’ when it comes to untangling the challenges your business faces when it comes to a comprehensive business line of credit? We think it's a solid finance solution and many industry experts agree. Here is why!

What is ABL? .... which of course stands for asset based lending. We ask that question only because it, and other terms such as ' cash flow ' mean different things to different people. In our terms it is a total solution business line of credit that allows you to borrow against your receivables, inventory, equipment, and even real estate, all within one revolving facility. It is as simple as that.

It's really a total solution that , in effect, is an ' evolution ' in the concept of a business line of credit. For the asset based lending company, your new partner in business banking its all about the balance sheet. That is of course compared to Canadian commercial business banking, where it’s all about the balance sheet... and your cash flow statement, and your income statement... and your personal guarantees. Those of course are what drive Canadian business banking rates to be so low and so great... if you can access them!

If we had to line up the different companies that access ABL capital its a diverse group - its larger firms that are very bankable but can access more capital at better rates , all the way down to start ups with a more limited financial history, at the same time having assets that can be financed .

We are pretty sure this doesnt exist in Canada, we certainly haven’t seen it yet, but in the U.S. there is a huge ABL capital market known as ' Second Lien '. Under these facilities the asset based lender sits on top of the senior bank facility, in 2nd position, and advances even more against the total assets already being financed by the bank. Surely that is one reason why our banking and lending practices are much more conservative in the world marketplace - we don't lend twice against the same asset!!

When we sit down and talk with clients about what can be financed and how its often practical to finance current asset accounts such as a/r and inventory via an ABL line of credit, while at the same time financing the equipment and other fixed assets under a separate facility with a finance partner/lender who has an appetite for those type of assets. That total combination of two facilities gives our client a lower ' blended cost ' of funds and at the same time increases borrowing power - talk about a ' double whammy '!

What made asset based finance popular in Canada when it comes to business owners and financial managers seeking solid biz credit facilities? A lot of it revolves around 2008/2009 when financial markets went awry and thousands of Canadian businesses started to investigate alternative methods of financing their business. And ABL sure was one of them.

And the irony in the above? Simply that companies that even theoretically qualified for more traditional financing could not get it... enter the ABL facility!

So is there a trend emerging in Canadian business lines of credit. We think there is. In the U.S. experts confirmed that in 2011 asset based credit lines almost doubled. Did that happen in Canada? We think it did, perhaps somewhat less so, but clearly the emergence of a new trend.

If your company is looking to grow (or just survive) investigate the benefits of ABL capital , making you a more effective competitor . Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in making the right decision with the right type of facility.

7 PARK AVENUE FINANCIAL
CANADIAN ASSET BASED LINE OF CREDIT 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 9 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/abl_capital_business_line_of_credit_finance.html





















Stan Prokop

Recognize These Symptoms? It Time For New Business Financing And Capital Strategy Options !

Canadian Business Financing – Techniques and Solutions


Information on business financing options in Canada . Get the right capital and strategy for your company’s needs

Business financing in Canada. Or lack thereof?! Are there some symptoms for finance capital options we can look for, and fix? We think there are.

Here's one for you. How many business owners would associate overdue receivables, poorly moving inventory, or under used fixed assets as a symptom of too much financing. We're pretty sure that few business owners (or even their financial managers) would associate those symptoms with having too much capital!

Then of course there is the other side of the coin, which is what clients always are looking for - business financing solutions. So what would some of those symptoms be? They are pretty obvious more often than not:

Little or no cash on hand

Vendor payment issues

Manufacturing timing / shipment issues (You can't make ' em fast enough!)

Also, by the way, if you feel you are getting too little of a return on investment on all your assets its pretty clear that might be a symptom of a capital strategy problem.

It's safe to say that the right amount of cash flow, working capital, and other assets would probably fix any challenges your firm is facing. Naturally every business is different; for example a service company requires little fixed assets and tends to be more cash flow based.

Here is one for you. Did you know that some analysis around your fixed capital can actually help you solve your problems? Take a good look at your long term debt and equity on the balance sheet and measure that relationship once in awhile - yearly would be a minimum timeframe.

We're still looking for some other symptoms though, right. Here's some more. If you feel on an ongoing basis that you’re experiencing large increases in receivable and inventory growth you are strong candidate for some hard analysis of some new financing and capital options. It's those 'investments ' in receivables and inventory that devour your cash flow, forcing you to address new financing options. For the SME owner those large growths in A/R and stock actually mean you will probably be able to take less out of the company in the form of dividends, mgmt. bonuses, etc.

By the way, if you are looking at new purchases of assets ensure those assets will generate profits, not eat up capital or create losses. That's just common sense.

New Business financing options can be addressed if you have a strong handle on a very few basic calculations - those include some rudimentary things like expense per day, receivable turnover, inventory turns, etc.

Oh, and by the way, lenders of short term and longer term capital are looking at those same things in your balance sheet, so being able to talk to those issues will help you... a lot.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with capital options in the short or long term (and crisis) situations.

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_financing_capital_strategy_options.html

Do You Like Easy ? Leasing Company Solutions In Canada For Your Capital Lease Asset And Operating Needs

Who Doesn’t Want Easy When It Comes To Asset Finance !


Information on leasing in Canada . Why Canadian business chooses the benefits of capital and operating structures for lease assets in Canada .



Easy. Leasing. What business owner or financial manager doesnt like easy , and when it comes to capital or operating lease assets that's exactly what is happening these days.

It couldn’t be any more basic; it’s you, your lessor, and the use or ownership of an asset. The majority of Canadian businesses prefer what's known as a capital lease, aka ' lease to own ' , The industry sometimes makes this a bit confusing as other terms for this transaction include ' financial lease ' , ' full payout lease' and ' finance lease '.

The bottom line, in that type of transaction you're simply signifying your choice of taking ownership at the end of the leasing term, of the asset or assets in question.

Why then do thousands of businesses in Canada, in fact almost 80%, so it would appear we're probably in the millions, choose the lease of assets as their Canadian business financing mechanism of choice .?

When you think of it, it really comes down to 4 basic reasons. First of all there is the necessity to acquire assets to run their business that they might otherwise not be able to purchase outright. Or perhaps they don't qualify for a bank term loan,

The other reason is termed ' risk shifting ' as your lessor shares the risk of ownership during the lease term.

Thirdly we have tax and accounting benefits that accrue to the Canadian business owner.

The fourth reason. IT'S EASY!!!! ... and convenient.

Almost all asset classes can be financed in Canada , but a great example of 'Easy 'when it comes to financing your business assets is computers , software and tech assets in general.

What business owner today wouldn’t be reluctant to lay out huge sums of cash when it comes to both cost as well as the constantly changing technologies of the tech world?

In fact that very subject, technology asset finance is why thousands of firms opt for the other type of lease available in Canada. That’s the ' OPERATING LEASE ‘and it’s simply a lease that can be renewed, extended, or upgraded during the lease term. That ability to make lower lease payments for only using and then returning the asset has a lot of appeal to chief information office in medium size or larger corporations.


Clearly there is an element of ' pride of ownership ' when it comes to fixed assets for your company. But it’s a changing world, and if you can achieve use and profits of the asset in an economical fashion its clear that leasing is probably for you.

Various techniques can be used when it comes to figuring out the ' lease vs. buy ' conundrum .Just make sure you use an apples to apples comparison tool, and that you understand your cost of capital and the real interest rate you are being offered.

So, ‘EASY’ when it comes to lease assets. You bet. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your capital and operating leasing needs.

7 PARK AVENUE FINANCIAL
CANADIAN LEASING AND ASSET 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/leasing_lease_assets_capital_operating.html

Scientifically Proven ? An Asset Lease Whether Operating Or Capital Works For Financial Bridging of Canadian Business Financing

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

Dealing With An Equipment Lease Company Seem Like The Occult Of Capital To You? Financial Leasing Is Common Sense. Here’s Why.

Take The Mystery Out Of Canadian Equipment Finance


Information on financial leasing in Canada . Searching for the right equipment lease company for your capital needs isn’t as tough as you think !



Not fully up to speed on how, when and why to deal with an equipment lease company in Canada. Financial leasing doesnt for capital assets your business needs doesn't have to seem like the occult to your company. Let’s establish some common sense ground rules on equipment leasing in Canada. Enter clarity!

It tends to start at the ‘leasing versus buying ' decision. Whether you are a start up, in the SME sector, or a major corporation financial leasing of an asset will often work far better than an outlay of your firm’s cash in the form of a purchase.

An oft touted but oh so true advantage of an equipment lease is simply that it allows you to maintain up to date assets, thereby allowing your company to stay both productive and competitive . In many cases it’s quite costly as it can be costly to maintain obsolete assets that are deteriorating in value.

In the case of computing or telecom power for your firm the increased power, capacity, and all those bells and whistles of a new technology makes lease financing a perfectly logical financial decision.

In Canada businesses spend billions of dollars each year on new capital asses - Again, that can be rolling stock, plant equipment, telecom and computer assets, office equipment... basically anything! And in North America 80% of all firms utilize the concept of financial leasing to acquire that asset.

How much you pay in your lease contract is determine by two things, of course it’s the rate inherent in the lease, and secondly, the type of lease you enter into and its structure.

In Canada you pretty well have two choices - the capital lease and the operating lease. When you choose an operating lease one of the key benefits is simply that your monthly payment will be smaller. At the end of the lease term the asset isn’t quite fully paid for. Why is that? Simply because the lessor, or another third party who you need to know about, right about now! has made a residual investment in your transaction . In essence they made up the difference at the time your asset was paid for by the financial leasing company.

So now what then? You're at the end of the term of the lease and you don't own the equipment! Don't despair, because if you have a properly crafted operating lease you are the ' fork in the road '. Your options now are to purchase the asset for its current fair market value, return the asset, or thirdly enter into an extension or upgrade on your transaction.

Capital leases seem to a more straightforward kettle of fish. Your payments are traditionally more than an operating lease, if only because you are paying in full, with interest, for ownership at the end of the term.

When you are at the start of your transaction, our previously referred to lease vs. buy decision what must you consider to make one of the two choices above.

Those issues for consideration are monthly payments and cash flow, down payments, the obsolescence issue on your asset, your firm’s current cash flow situation, and your credit arrangements with existing lenders.

Canadian firms who want to grow their business and manage their assets properly should consider dealing with a solid equipment lease company or advisor as a partner for the future. Speak to a trusted, credible and experienced Canadian business financing advisor for help in making the right decisions in this critical aspect of your company's business.





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/equipment_lease_company_financial_leasing_capital.html

Making Sound Choices With Your Leasing Finance Company? Canadian Operating And Capital Lease Solutions

Cover Your Assets With The Right Lease Finance Strategy!


Information on choosing the right leasing finance company for your capital and operating lease solutions . Know Your Common Types of Choices!




The right leasing finance company. Sounds like a simple choice, right? But the reality is that when it comes to selecting the right capital and operating lease solutions for your firm can you really say you feel 100% prepared.

Abe Maslow was a famous U.S. professor, widely published and studied. He once wrote ' when the only tool you have is a hammer every problem resembles a nail'! No pun intended, but talk about hitting it on the head ! Most Canadian business owners and financial managers know they need a finance solution ; they know lease finance works, but quite often are very unclear on some basic selection criteria you need to have under your business belt when it comes to signing on the dotted line.

There are several major categories of leases and one, probably not all, is the right one for any particular equipment financing you enters into. When you win at the asset finance game you no doubt have one step on your competition. So it’s a question of knowing which benefits might accrue most logically to your firm.

Unlike the U.S. where things are a bit more complex, the leasing finance company in Canada has two major products, the lease to own solution, aka ' capital ', and the lease to use option, aka ' operating '. The operating lease is also often referred to as a fair market value lease or ‘true lease' , and we hasten to add the capital lease is also known as a finance lease .

Each of these two products exists to serve some basic needs of your company. A key point that is often overlooked by the lessee is the fact that either of these two leases can in effect be ' bundled ' to include other of your supplier’s deliverables, including shipping, installation, warranty, maintenance, etc.

Although an operating lease could in fact include a bundled component more logically that is undertaken for clients who wish the lease to use, or capital lease option. In an operating lease these items would be fully priced out, and would probably increase the total ' all in ' rate you are paying.

The world of operating leases is diminishing a bit with the inception of new standardized accounting rules that are coming into effect on a global basis. Although many of the benefits of leasing in general come together in both capital and operating leases the whole operating lease scenario becomes a bit more of an accounting exercise .

In an operating lease there is no interest per se - that might seem confusing to many. But the lease is structured as a payment only scenario, with your choices, or obligations being the ability to return, upgrde, or purchase at the end of term fair market value.

You will not always see, or get clear explanations from a leasing finance company on the type of lease, capital or operating, that you are entering into .That because the Canadian marketplace has lessors with either small, mid, or large ticket focuses. It's up to you to know who is offering what, what they are calling it, and if things are as they appear and promised.

Speak to a trusted, credible and experienced Canadian equipment financing advisor who can assist you in separating the promise and the deliverable for your firms benefit.








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_finance_company_lease_operating_capital.html

Understand Your Asset Finance Options. Leasing Versus Buying And Capital vs. Operating . It’s Your Call!

Making The Asset Financing Decision An Easy One

Information on asset finance and the leasing versus buying questions faced by business owners in the search for financing of capital assets via equipment finance .


Leasing versus buying. It's one of the classic questions faced by business owners and financial managers when they are looking for asset financing strategies that make sense in capital acquisition of business assets.

Let's examine how you as a business owner or finance manager can make the right decisions when you are at the proverbial fork in the road, the classic ‘ lease vs. buy ' scenario.

Part of the reason we're intrigued by this subject is simply the fact that there is so much misinformation around there, in some cases it's just an issue of not knowing what questions to ask.

Your firms ability to invest in new equipment whether its plant or office assets, or even telecom and computing needs typically brings you to the decision point to lease versus buy. You know that with these new assets your firm can most often become more productive and profitable.

The reality is, we think, is that it's as important a decision on buying and financing those assets as it probably was as to which asset to purchase, from which vendor, and at what price.

Your ability to match the right amount of financing capital with the use and term of the asset should be key to your decision.

The term lease itself, as simple as it might seem, is actually part of the confusion around the leasing versus buying decision. Many business owners think that there is always an ultimate obligation to return the asset at the end of the lease term - similar to the consumer leasing an auto. That is categorically not the case.

In reality you have the basic choice of entering into two types of leases in the Canadian business leasing industry - a capital lease or an operating lease. The capital lease is a basic lease to own scenario, no obligations there. Other than to make your payments! The operating lease gives you the right to return the asset if you choose, but it is not an obligation, it’s actually one of three choices you have under the operating ' fair market value ' lease. You can return, extend, or buy the asset.

The beauty of the operating lease is that it gives you all sorts of flexibility, has a lower monthly payment, and puts you in charge of the final asset several years down the road at the end of the lease term. This type of lease is perfectly suited for telecom and computing assets.

Many business owners and finance manager are often confused about their dealings with lease companies. We can commiserate with that , because its a question of which firm to deal with, what are their credit policies, which assets do they prefer or not prefer to finance, and are they easy to do business with when it comes to documentation and ongoing correspondence and relations during the term of the lease .

It's at this time when it might be best to focus on working with an expert who already has the knowledge and relations within the industry to best serve representing your needs.

We continually encourage clients to view a lease financing and asset finance company in the context of developing a long term relationship. The right type of firm will actually help you put together one Master lease and set up a lease line of credit, allowing you to quickly and efficiently add on assets at any time with minimum work. Bottom line, it’s not complex.

The key benefits of leasing, versus buying always stay the same. There are tax advantages, preservation of capital, and minimum down payments and certainly usually no outside collateral required. The asset being financed is the collateral!

Speak to a trusted, credible and experienced Canadian business financing advisor on the asset finance capital strategy that works best for your firm - and trust us, its not as complicated as you think!





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.webpage66.com/asset_finance_leasing_versus_buying_capital.html

Business Lines Of Credit Make The World And Your Company Go Round! Canadian Working Capital And Secured Facility Information .

Smart Businesses Have A Business Line Of Credit

Information on business lines of credit in Canada . How does a secured facility work and why is it necessary to have a working capital revolving credits.



Did you hear the one about the Canadian firm that went out of business because they were too profitable and growth was great? That's an ironic statement to many business people, but the reality is that profits don’t equal cash flow and business lines of credit via a secured facility is the capital you need to survive all that success .

It's actually pretty simply when you think of it but because your firm has made that investment in accounts receivable, inventories, and other working capital assets you need operating loans to make your business work - on a day to day basis.

It's pretty safe to say that if you running out of cash or working capital, whether you're a FP 100 company in Canada, or all the way back to a start up is a concern for any business person , And of course the business papers are full of those stories everyday .

So that’s put us squarely in front of the bank with the proverbial tin cup in hand !Yes there are numerous alternate sources of cash flow and working capital, but our focus here is on bank secured lines of credit . Oh, by the way, there aren't really business banking unsecured lines of credit for your business, so we're in a narrow field here!

Canadian chartered banks do it a bit differently when it comes to operating lines and lines of credit. They take an assignment of your assets (just in case!) and wrap this security agreement into a demand loan type arrangement. These are typically reviewed on an annual basis.

How much you ' get ' from your secured facility is, in general, pretty standard. Typically that’s 75% of what is called your ' eligible ' receivables, which are those clients of yours under 90 days and within North America. On occasion clients that have extensive foreign receivables are required to compliment business lines of credit with export credit insurance from government organizations such as EDC and some other private firms.

Inventory margining under business lines of credit is a bit trickier. It is rare you can achieve 50% borrowing value, and all sorts of analysis might be required on the type of inventory you wish to finance.

Giving due credit to the banks its safe to say that any type of inventory financing for capital purposes is risky, and any lender rarely gets back what they have loaned out on this asset class.

One of the areas that work well under a secured capital facility is that your borrowing is your own business. There are no client notifications, and your customers would really only be notified in the event of a default by your firm. In this case your customers would be asked to pay the bank directly, which only makes sense.

If there is one danger area in a business line of credit it is simply the fact that your business should use these funds for short term working capital. Taking these funds you have borrowed on a short term basis to buy equipment or make longer term corporate investments generally leads to problems.

If you're uncomfortable with banking terminology, which banks offer what business services, or want to learn about any potential downside in business banking consider speaking 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/business_lines_of_credit_secured_facility_capital.html

Which Of The 3 Equipment Lease Rates Would You Choose ? Canadian Capital & Operating Lease Payments Explained!

Canadian Equipment Lease Rates – the truth!


Information on equipment lease rates in Canada . How are lease payments calculated on both capital and operating lease scenarios . Which type of transaction has the best payment structure for your firm?



OK. Quick test. Here we go. Let’s test your knowledge about equipment lease rates, payments... as they appear to be, and how those payments look in capital and operating leases in Canada.

Let’s assume you have a $ 150,000 transaction - you are looking for a 4 year lease term, and you are being offered three lease payment choices. Those choices are:

$3637.00
$3108.00
$3373.00


So, now the test. Are you ready. Which payment do you choose? The answer. All three transactions are essentially the same! Its just that the type of lease you choose and how Canadian equipment lease finance companies show you that payment is really where you can save, ( or by the way , lose) thousands of dollars . Let’s explain.



First of all, threes a huge difference in the types of leases being offered to Canadian business owners and financial managers in Canada. We're actually quite lucky because the U.S. leasing industry is populated by all sorts of leases, the names even make our eyes roll, and we think we're somewhat of an expert. They include Trac leases, synthetic lease, non leveraged lease, etc.

But, we're Canadians, eh?! So we keep it simple, and for the most part you only have to choose between two types of leases in Canada, capital and operating. Its the equipment lease finance industry in Canada that sometimes tries to make even these two scenarios complicated - its our job to keep clients decisions simple, and, oh yes, understandable !

Once you have a handle on the two types of leases, and some of the ' games ' albeit legitimate that lessor tend to play you should consider yourself fully armed with respect to getting leasing payment and equipment lease rates for those two basic scenarios ; capital, which is ' lease to own', and operating, which we call ' lease to use'!

When you enter into a capital lease you have made the decision to own an asset at the end of a typically longer lease term. In Canada that is anywhere from 2-7 years, although the most typical lease terms are three years and 5 years.

Operating leases on the other hand tend to be 2-3 year terms, and the reason why is that some of the technical and accounting calculations needed to make an equipment finance lease work from an operating perspective require the calculations to be on a shorter term. But that’s ok, because its assets in an operating lease that tend to be upgraded, returned, remarketed by you or the lessor, etc.

We encourage clients to think of their lease financing needs in terms of both financial reasons and operating policy reasons. All sorts of issues come to mind when you are leasing assets in Canada, not the least of which is getting approved! Other issues such as budgets, payment flexibility also come to mind.

Oh, and back to our opening question, which would you choose again. The first calculation is a standard lease with no obligation at the end of the 48mo term. The 2nd transaction is a slick trick, and actually useful financial strategy, which is providing you with a purchase option at end of term. You can pay or extend typically. And the final is an operating lease, same asset and term, but with a 15% residual investment by the lessor.

A bottom line? As always, speak to a trusted, credible and experienced Canadian business financing advisor who can help you wade thru the myriad of equipment lease rates and structure in a common sense manner that benefits your company.





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/equipment_lease_rates_capital_operating_payments.html

Save Thousands With This Info On Capital Equipment Leasing Companies In Canada . Lease Financing Tips!

Canadian Equipment Financing



Information on equipment leasing companies in Canada. Financing Capital assets with the right information can save you money .





The lay of the land. Kind of important in any aspect of business, wouldn't you say? There a tremendous amount going on in Canadian capital equipment leasing today, so let’s examine who these companies are, where they are, and most importantly, what you need to know about them!

Surely we all agree there isn’t a more viable method of financing capital needs then equipment leasing in Canada. Stat's show that over 80% of all companies at one time or another lease assets. So, no surprise that the industry today provides a huge amount of the capital in the financial industry when it comes to asset acquisition... your asset acquisition!

So whats all the fuss and excitement about ?We guess its the simple fact that almost any asset can be leased, and that includes software and cloud computing , right up to our traditional favorites : plant equpment, rolling stock, office equipment, medical equipment, and heavy construction equipment, affectionately known in the industry as ' yellow iron;.

So with all that goodness is there anything to be worried about when it comes to lease financing strategies and transactions for your firm? When we talk to clients it's often simply that they can sometimes view the transaction as complicated, and find it tough slogging when it comes to credit approval, other financial considerations, and the time spent sometimes to complete a successful transaction.

And when that transaction is completed are you 100% sure it’s a good one, maximizing ALL of the benefits that equipment leasing companies offer?!

The reality we have always found is that you can save thousands of dollars, or lose thousands of dollars when entering into the best or worst, respectively, transaction.

So what are clients interested in when it comes to acquiring assets via equipment financing? We can generally lump those issues into areas such as tax and accounting implications, the choice of the best structure of the lease from lease type (there are 2 types) as well as proper terms, rates, amortizations, etc.

Many clients we've spoken also often fail to perform some very basic ' lease vs. buy' analysis that points them in the direction of knowing that they made the right decision when it comes to buying or leasing .

And finally, what are the serious pitfalls when it comes to making the wrong decision?

You're in good company when it comes to being a lessee of equipment in Canada .Canada's largest corporations, right down to start ups and sole proprietorships lease assets. They lease these assets from companies that fall into three general categories - small, medium and large ticket assets. Things are somewhat further complicated because the companies that are in these three broad groups are independent commercial finance firms, foreign owned firms, Canadian firms, captive finance firms associated with manufactures, and bank owned in some case , And that’s Canadian bank owned and U.S. bank owned .

Help! We can almost hear clients as we walk them through the basics of some of the key points we've shared above. Is there a quicker way to the goal line considering all the demands of your time as a business owner or financial manager? There is... consider using an expert. What a revelation, right?! Speak to a trusted, credible and experienced Canadian business financing advisor who can meet all your lease financing needs and put you in a transaction that save money, accrues benefits ; now that’s a win/win!




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_leasing_companies_financing.html

3 Obvious And 1 Not So Obvious Reasons To Consider Canadian Lease Equipment Financing For A Capital Asset Loan

How To Capitalize On Equipment Leasing In Canada

Information on lease equipment financing in Canada and what solid benefits Canadian business owners and financial managers can achieve via a capital asset loan financing program .


It's always a little easier to consider the obvious in business and business financing in Canada. Occasionally though we think it’s prudent for clients to ensure they consider all the benefits of certain methods of financing, some of which might not be so obvious. Let's clarify with respect to lease equipment financing in Canada, and why and asset loan or lease for capital financing purposes is often head and shoulders above any other financing alternative .

It's a given that you want to ensure any financing decision has solid reasons and benefits prior to entering into the transaction. In Canadian equipment finance the ability to finance between 90 - 100% per cent of the asset, as well as additional miscellaneous costs is clearly a huge, and obvious benefit.

In the past we have often referred to lease equpment strategies with a phrase we always thought was quite powerful... it’s simply as follows - Asset loan and capital lease financing helps you overcome ' obstacles to innovation '.

Because quite often when we sit with a client the cost of an asset acquisition is in fact the largest obstacle to innovation and growth within their firm. Simply put, if we had all the capital we needed we probably would always by the best (most expensive) fixed assets for our business.

Let’s get back to that 90-100% financing. Although many lessors tout the fact that lease finance in Canada is 100% financing the reality is that on many occasions clients are asked to put down a down payment of security deposit on the lease finance transaction. We would point out though if your firm has very good commercial credit and financials and cash flow that support your transaction you should in fact focus, if not demand! 100% financing.

So, on to our 2nd obvious reason to focus on lease equipment financing asset loan/lease. It’s all about the term. The term of course refers to the length of your lease... it can be long to ensure lower payments and reflect the assets useful economic life, or it can be shorter it means getting an approval vs. not getting one. We point out to clients that ,on balance, lease terms of less than 2 years to not make sense for the lessor... so don’t focus on too short a term!

We heard a rumor the other day... that being that ' cash is king’! If you subscribe to that rumor then equpment financing is for your firm, reducing cash flow drain and be adjusted for seasonality, delivery issues, or simply staggering payments to ensure your match benefits of the asset with cash outflows.

Those all 3 very obvious, and often discussed benefits of asset financing via leasing in Canada. We have focused on who you are dealing with, which is one of the hundreds of equipment finance firms in Canada. So our ' not so obvious ' point today is simply that by not dealing with banks , insurance companies, hedge funds, etc , all of which might hold other security over your firm you are in effect freeing up the business credit than any firm so badly requires these days . And you can further expand that business credit by considering off balance sheet financing via operating leases, which make perfect sense for larger ticket items such as computers, aircraft, etc.

So as we have said, there are a number of ' economic ' benefits to leasing equipment in Canada. To further explore some of these obvious( and not so obvious!) benefits to your firm consider talking to an experienced Canadian business financing advisor who has a trustworthy, credible and experienced reputation in Canadian equpment finance .




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_equipment_financing_asset_loan_capital.html