IT ( Information Technology ) Equipment Leasing – Why Computer Equipment Leasing Makes Sense in Canada!

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The Why and How For Leasing Business Equipment

Information on information technology , .. i.e. IT computer equipment leasing in Canada. By the way, software can be financed!

Let’s get the acronyms out of the way – IT is of course Information technology , and hundreds of millions on dollars of computers, software, and related technologies are acquired by Canadian business every year.

So why is ‘it equipment leasing ‘the chosen method of financing form firms who lease business equipment. The reality is that these assets make your firm more productive and competitive – and equipment financing and equipment leasing simply remove one of the major obstacles to your innovation – that obstacle is the cost of the equipment. Although the cost of technologies seems from a distance to be always going down (thinks PC’s and servers, etc) the overall sticker shock of your total investment is still a huge potential outlay of valuable cash and working capital.

Lets examine why the main advantages of leasing make total sense in the context of it equipment leasing. We’ll also discuss how you can actually get this type of financing in place.

First of all, and we hate clichés, but cash is (still) king! And most firms simply don’t have the cash available to pay for all their technology needs. You also don’t want to be in a position to match long term capital acquisitions with short term working capital availability. So your ability to match the anticipated useful life of the equipment with cash outlays is a considerable advantage. That’s what lease financing does of course.

Canadian rates are very volatile and although they are low they are expected to go up – leasing will often give you the option of fixing or locking in rates.

Whether your firm is large or small you need and have access to bank facility or working capital lines – maybe you are even self financing? A lease for business equipment leaves those credit facilities untouched. Also, and put your hand up if you have any input on this one, but lease financing is usually achieved with a basic business credit application and applicable information such as your financials, projections, etc . It is arguably the easiest way to get business financing approved in Canada.

In general any investment in technology makes you competitive and in many manners allow you to cut costs, simplify processes, etc. Put a financing solution to that technology and business improvement seems like a very solid decision.

The reality is that if you firm requires it computer leasing you quite frankly don’t have a lot of financing options. Bank term loans in general don’t make sense for technology that in general depreciates in value but still have a direct benefit to your firm.

Many computer leases are constructed around the concept of an operating lease. There are essentially only two types of equipment leases in Canada, capital and operating. Capital leases are leases to own, operating leases are leases to use. When financing technology, it, computers, etc you should probably consider the benefits of an operating lease – they have a lower cost, a lower monthly payment, and you have a triple option at the end of the lease term – you can return, purchase, or upgrade. That’s true flexibility!

So if you are focused on technology acquisition consider lease financing – we have show it is a better and more appropriate use of cash flow, it is generally easier to obtain, it hedges you against obsolescence of your acquisition, and may even have some solid tax and balance sheet advantages .

The Canadian lease financing business is both specialized and competitive. We strongly recommend you seeks the assistance and resources of a lease financing and business financing advisor who is knowledgeable, credible and experienced in it computer leasing. Advice you receive on the right lease partner, the best lease structure, and what competitive interest rate you might be a candidate for could save you thousands and tens of thousands of dollars.

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

Click here for 7 PARK AVENUE FINANCIAL

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 .

' 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 A Gamechanger Strategy In Technology / Computer Financing For Your Company ? We've Got One!

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Looking For A Gamechanger Strategy In Technology / Computer Financing For Your Company ? We've Got One!

Information on computer leasing and technology financing in Canada - The right acquisition financing strategy in these types of assets is critical

Computer Leasing – the lease financing of business computers and technology is probably the best example of your Canadian business utilizing classic benefits of lease financing.

Why are Billions of dollars of computers and related technology leased every year – The answer is that the computer industry seems always in the forefront of new and leading edge technologies. As consumers we know in our home purchases how quickly we might be feeling that our technology for home computing is out of date, not fast enough, doesn’t have enough bells and whistles, etc .


The classic benefits of lease financing are generally known to most Canadian business owners and financial managers – they include the ability to upgrade equipment easily or at the end of a lease term. Many organizations, especially moreso if they are larger are not looking to spend large sums of their capital budgets all at one time on computer upgrades.

We refer to ‘ computers ‘ – but to be clear computer related financing includes everything you might be thinking of in a technology acquisition – that includes the actual personal computers, servers, mainframes if that is appropriate, application and operating software, as well as maintenance contracts and service contracts . The total dollars spent on computing power in any organization is always significant relative to the total of any company’s capital budget.


Additional benefits include the ability to contain debt on your balance sheet, remove debt entirely and still acquire your computing power ( operating leases do that ) and also you have the ability to influence cash flow via fixed or variable payments . Many customers choose to pay leases on a quarterly or sometimes even on an annual basis, although monthly tends to be the most popular method.


We have spoken of obsolescence, and also referenced the fact that computer and technology leasing is a classic ‘poster boy ‘for lease financing. That is because as technologies change you do not want to be locked into the inability to acquire more computing power for the same or less money. The author worked in computer financing for over 20 years, and whether it was dealing with the CFO of some of Canada’s largest organizations, to small start ups during the’ dot com’ era – all of these people recognized the power of technology financing .


Let’s illustrate via a simple but clear example -. You need to purchase 100,000.00 of computers and related accessories – Typically your monthly payment would be, over a 36 month term approximately 3100.00/ month.

If you had paid cash for the purchase you would probably find in two years you needed new computers – you have spend 100,000 in cash, you own old technology which is depreciating, and newer computers and software are being used by all your competitors to gain a competitive advantage .


What might you have done? What would an alternative business financing strategy be? Well , if you had leased the computers and structured the transaction as an operating lease here what you would do – you would return the computers to the lessor , order the new computers , and you payment would stay the same or in some cases be less !

And of course now you have regained competitive advantage in your marketplace if you place an emphasis on computer power, internal infrastructure, and access to your data, ET c


That is just one of many, many ways in which computer lease financing is a powerful financing strategy. Talk to an experienced business financing advisor who has credibility and experience in this type of financing – You will soon find your firm is also ‘leading edge ‘in financing!


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

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 .



' 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

Computer Financing & Leasing in Canada : How Much Do You Really Know?

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Looking To Eliminate Computer / Tech and Software Financing Anxiety For Your Business

– Here’s How !

OVERVIEW – Information on how computer leasing and financing strategies in can benefit your technology acquisitions and how to finance properly with operating or capital lease options, as well as project financing and software finance options

Computer leasing has many companies not fully understanding all the benefits that come for financing your technology, telecom and software needs. Let's dig in.

We're discussing the acquisition and financing of computers and technology in a couple segments of your business. . The proper term for this type of financing is ' Technology lifecycle management '. That's what the pros call it - our customers keep it a bit simpler: ' Should I buy or lease my firm’s new computers and software and related products and services? ' !

Two old adages related to leasing still ring true when it comes to the technological aspect. That is that business should finance something that depreciates, and companies should buy something that appreciates in value.

Most business owners and consumers as well know very well that computers depreciate in value. Systems we paid thousands of dollars for years ago are now hundreds of dollars. Walk into any ' big box ' retailer and see the dramatic moves in technology.

Business owners who finance technology demonstrate a higher level of cost effectiveness. The company wants to reap the benefits of the technology over the useful life of the asset, and, importantly, more evenly match the cash outflows with the benefits.

Leasing and financing your technology allows you to stay ahead of the technology curve; that is to say you are always using the latest technology as it relates to your firms needs. Also you're minimizing cash outflows as they relate to the spending you incur on computers, software, etc.

Businesses that lease and finance their technology needs are often working better within their capital budgets. Bottom line: You can buy more and buy smarter!

Many companies that are larger in size have balance sheet issues and ROA ('return on assets ‘) issues that are compelling. They must stay within bank credit covenants and are measure often on their ability to generate income on the total level of assets being deployed in the company.

Lease financing allows those firms to address both of those issues. Companies can choose to employ an ' operating lease ' structure for their technology financing. This is more prevalent in larger firms, but works almost equally as well in small organizations.

Operating leases are ' off balance sheet '. The firm adopts the stance of using technology, not owning technology. The lessor/lender owns the equipment, and has a stake in the residual value of the technology. The main benefit for the company is that the debt associated with the technology acquisition is not directly held on the balance sheet. This optimizes debt levels and profitability ratios.

At the end of those operating leases, which are usually 36 months long, the customer has the option of:

1. Returning the equipment
2. Buying the equipment (not likely though)
3. Negotiating an extension of the financing for continued use of the computers, technology, etc.

Companies that have recently acquired computers and technology can in fact negotiate a' sale leaseback ' on those same assets. This financing strategy brings cash back into the company , as the firm has employed a leasing and financing strategy building on our above noted them - using technology, not owning technology .


So, our benefit summary to date is:

* The company can stay ahead of the technology curve

* Computer leasing and financing has significant balance sheet and income statement benefits

* The firm has flexibility with respect to buying new product, returning existing technology, and generating cash flow for purchases already made

Many of the benefits we have discussed relate to leasing in general. However, technology and lease financing are very perfectly suited to the business financing strategy of leasing

Working capital saved on computer leasing and equipment leasing in general allows a company to use that capital to grow revenues. Depending on which types of leases are utilized there are also tax benefits associated to leasing.

With the current focus on the environment customers can work with their vendor to return unused equipment at the end of the lease for proper ' green' disposition. Speak to a trusted, credible and experienced Canadian business financing advisor who can provide you with the best strategies on computer leasing and financing.





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

Caution - Danger Ahead ! IT Finance And Computer Leasing . Technology Financing Tips

Good Information Spells The Difference In Technology Financing

Information on IT Finance. Technology Financing And Computer Leasing Covered!






It's probably just us, but we think there’s no aspect of equipment financing in Canada where one small piece of info could cost you, or make you thousands of dollars. Let's cover off some IT Financing (IT = Information technology) basics. All of a sudden that cautionary road sign up ahead wont be as much of a concern.

Although the actual benefits and economics of any lease should always be considered it just seems more of a need when we are talking about IT finance for your infrastructure, computer, and even telecom needs. The challenge is actually pretty basic, matching a financial solution to those fast paced (and expensive) technology needs.

So know what you will face, what decisions you need to make now, and during and at the end of your lease financing is, well, critical!

The reality of tech financing is you have to be pretty sharp and well informed in several key areas - just knowing those areas is important. They include documentation, structure, as well as your rights and obligations in certain lease arrangements.

Hardware makes up probably the majority of dollars in computer leasing transactions. Whether it be telecom, server, pc, laptop, notebook, tablets, or even ' cloud ' type solutions that’s where the buck seem to be. Canadian business owners can finance hardware separately through 1 of the 2 lease vehicles available, or your transaction can be combined with soft costs such as application software, installation, etc.

Where hardware financing gets somewhat tricky and challenging is when it comes down to operating leases, residual values, disposition of equipment at end of term, etc.

The majority of Canadian business has financed larger computer leasing and it finance technology projects via operating leases. However, the next several years major changes in international accounting rules might well render a lot of the benefits of operating leases less effective, so it’s critical to stay on top of this development in accounting.

Although larger more sophisticated Canadian businesses have been utilizing software financing for years many smaller and medium sized businesses sometimes aren’t even aware soft costs such as software can be financed and bundled into your IT finance transactions. A good tip here is to ensure you understand how the cost of software is priced and blended into your entire transaction. It is most often amortized in full and sometimes attracts higher rates.

Medium sized and larger corporations are encouraged to take advantage of a Master Lease arrangement. A one time negotiation of terms, rights and obligations is going to save you time and dollars in the years ahead, along with the ease of simply adding on additional schedules of assets to be financed when you need them.

A common misstep in computer leasing is the failure of Canadian business to separate the financing from the manufacturer of the equipment, especially when it comes to warranties, service, and the right to use. So be careful in addressing issues separate, with the right party.

The largest benefits and the most risk in IT finance come from what happens during at end the end of a technology leasing transaction. Investigate and understand thoroughly your rights to terminate, upgrade, or renew at the end of the term. If you have entered into a capital ' lease to own' type scenario monitor your purchase options at the end of term.

Is there anything more ' mission critical ' than technology, computers, and telecom assets in Canadian business? Debatable, but doubtful don’t you think? Speak to a trusted, credible and experienced Canadian business financing advisor for your IT finance needs. All of a sudden that ‘Danger Ahead’ becomes manageable.




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/it_finance_technology_computer_leasing.html

Are You Mastering Technology Financing ? Canadian Computer Leasing Must Know Info For PC Hardware And Other Tech Assets

Computer Finance Tips For Canadian Business .

Information on technology financing in Canada .What do Canadian business owners and mgr’s need to address for solid benefits to computer leasing and pc hardware and software financing strategies .


Looking for a huge amount of risk, financial risk, and extra cost for your Canadian business? We aren’t’ and you shouldn't be either!

Haven’t you got enough risk in your business life to have to also consider the downside of making the wrong decisions in areas of technology financing? Surely it’s a fact that computer leasing of pc hardware, servers, and software provide both the greatest benefits to your firm, as well as the greatest risk if you structure things improperly.

It's always been clear to us that there are just a huge amount of benefits to your business when your technology infrastructure is throwing your firm off the benefits you had hoped for... (and were promised?)

Another aspect of getting the right tech financing in place is simply the amount of time you and or your key staff in this area can spend on weighing options and considerations .When your finance folks, accounting folks, and those techies aren’t in mutual agreement or in the know about whats going you are leading your firm into potential mistakes and costs you could have avoided.

When we sit down with clients and layout some key issues for them to consider for computer and software leasing one of the key areas we focus on is ' end of term '. It's a simple phrase that has all sorts of ramifications you didn’t think of. And unfortunately most clients focus on starting a lease, and not ending in, which should have the same consideration when it comes to computer and tech financing.

So why is the end of the lease so important in technology financing ?Simply because that’s when a lot of your risk mitigation kicks in , and , depending on which type of and lease company you are dealing with that’s when their real profit on your transaction often starts . It’s not always about the interest rate, which many clients seem to always focus on a being the most important part of a computer leasing success story.
So whats one example of how you can lose big time in technology financing and end of term .Quite frankly you wont believe how simple, and costly this is! We're talking about 'notification '.

Most Canadian companies don’t either know or understand their notification rights when it comes to end of term. Your lessor may have promised to call you when your lease term is up... if they do, or even better, notify you in writing, that’s great. However when they don't you are in many cases obligated to keep paying for the lease.

Ever paid for something twice by mistake? (We hate it when that happens!) You wouldn’t want to do that in your personal life, and surely with the cost of pc’s, servers, and software you would regret paying for that twice also. That's a bit of an understatement, don't you think?

So discuss end of term options, ensure you understand your rights and obligations, and also diarize when that lease term is up. Never had a calendar been so important!! And by the way, by spending some time on a ' Master Lease ' allows those notifications, rights and obligations to be addressed one time, up front, in writing! That’s smart business.

In summary, we often preach to clients that one of the largest obstacles to technological innovation to your firm is the cost of pc hardware, servers, software, telecom equipt, etc. Consider eliminating that 'obstacle to innovation' by speaking to a trusted, credible and experienced Canadian financing business advisor who can ensure you have computer leasing that makes sense , in place, today!



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/technology_financing_computer_leasing_pc_hardware.html

Computer Leasing and Financing in Canada

Many companies are not aware of the significant benefits related to Computer Leasing and Financing in Canada .

Let's discuss acquisition financing in computers and technology segments . The proper term for this type of financing is ' Technology lifecycle management '. Most business owners simply consider the following question : ' Should I buy or lease my firms new computers and software and related products and services ? '

Two old adages related to leasing still ring true when it comes to the technological aspect. That is that one should finance something and depreciates, and one should buy something that appreciates in value. Most business owners and consumers as well know very well that computers depreciate in value. Systems we paid thousands of dollars for years ago are now hundreds of dollars. Walk into any ' big box ' retailer and see the dramatic moves in technology.

Business owners who finance technology demonstrate a higher level of cost effectiveness. The company wants to reap the benefits of the technology over the useful life of the asset, and, importantly, more evenly match the cash outflows with the benefits. Leasing and financing your technology allows you to stay ahead of the technology curve; that is to say you are always using the latest technology as it relates to your firms needs.

Businesses that lease and finance their technology needs are often working better within their capital budgets. Simply speaking they can buy more and buy smarter.

Many companies that are larger in size have balance sheet issues and ROA (‘return on assets ' ) issues that are compelling. They must stay within bank credit covenants and are measure often on their ability to generate income on the total level of assets being deployed in the company. Lease financing allows those firms to address both of those issues. Companies can choose to employ an ' operating lease ' structure for their technology financing. This is more prevalent in larger firms, but works almost equally as well in small organizations. Operating leases are ' off balance sheet ‘. The firm adopts the stance of using technology, not owning technology. The lessor/lender owns the equipment, and has a stake in the residual value of the technology. The main benefit for the company is that the debt associated with the technology acquisition is not directly held on the balance sheet. This optimizes debt levels and profitability ratios.

At the end of those operating leases, which are usually 36 months long, the customer has the option of:

1. Returning the equipment
2. Buying the equipment (not likely though)
3. Negotiating an extension of the financing for continued use of the computers, technology, etc.

Companies that have recently acquired computers and technology can in fact negotiate a' sale leaseback ' on those same assets. This financing strategy brings cash back into the company , as the firm has employed a leasing and financing strategy building on our above noted them - using technology, not owning technology .

In summary, the key benefits of computer and technology lease financing are:

* The company can stay ahead of the technology curve
* Computer leasing and financing has significant balance sheet and income statement benefits
* The firm has flexibility with respect to buying new product, returning existing technology, and generating cash flow for purchases already made

Many of the benefits we have discussed relate to leasing in general. However, technology and lease financing are very perfectly suited to the business financing strategy of leasing

Working capital saved on computer leasing and equipment leasing in general allows a company to use that capital to grow revenues. Depending on which types of leases are utilized there are also tax benefits associated to leasing.

With the current focus on the environment customers can work with their vendor to return unused equipment at the end of the lease for proper ' green' disposition. Speak to a trusted, credible and experienced Canadian business financing advisor who can provide you with the best strategies on computer leasing and financing in Canada .

--

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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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