Technology Leasing Companies - Canada – Inside Info On Computer & Software Finance

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Leasing Technology Assets In Canada

Information on the benefits and pitfalls of technology leasing in Canada. Which companies offer financing of computer, software, telecom and other assets . What leases work best in hi tech?

If cash Flow and capital were no object the acquiring of technology assets wouldn’t be as much of a challenge as one would think. Canadian business owners and financial managers like to be on ' the inside ' when it comes to knowledge and competitive information - it’s just natural.

So we want you to be on the ' inside ' when it comes to technology leasing and financing . What companies should you be working with when it comes to the financing of telecom, computer and software assets. We want you to know some of the tricks (can we call them that) that the big boys use.


Technology leasing has some different economics when it comes to financing. Some very powerful ................ are in play. Your financial commitment to acquiring these types of assets is generally large relative to your overall capital budget; these assets tend to depreciate rapidly, and prices seem to be going down all the time... so when should you purchase? Boy, those are some interesting dynamics!


At the same time the benefits you receive from the use of tech assets are huge, not the least of which is your competitive position in your industry. So let's talk about overcoming some of those tech challenges


Many business owners are not aware that you can finance ' software ', either on a stand alone basis, or in conjunction with a hardware solution. But there is a key differentiator here, which is that it is much easier to lease application software as opposed to the software you have developed. But larger, creditworthy companies can in fact get financing for software development on a project by project basis.


One of the interesting ways that the lessor protects himself in these situations is to ensure they have access to and rights to the source code you are developing. How is that handled, usually via an escrow agent who maintains updated access to the source code, with the provision that should the lease default the lessor has access and rights to that source code .



Term. It's all about ' term ' when it comes to technology leasing of computer and software. Leasing companies in general prefer a 3 year term for tech assets. Does that make sense? We think it does... if only for the fact that the dramatic changes in hardware and applications render anything older than three years as somwhat obsolete when it comes to technological change. So the bottom line is to be prepared to defend your need for a 4 or 5 year lease term when it comes to a depreciating asset such as tech.


It should be no secret to Canadian business that technology leasing is secured by the lessor in the same manner as any other assets, a PPSA ( Personal Property Security ACT) registration is made against those leased assets; registering the lessor collateral in the hardware and software described in your equipment list and configuration .


If there is one ultra-important thing you should consider when looking at companies that will assist you in technology leasing of computer, software, and telecom assets it’s probably the type of lease that you enter into. Broadly speaking in Canada



You need to only focus on two types of leases - capital and operating. Is there an easy way to immediately pick which one is the most applicable to your need? It's not as challenging as you think, think simply in terms of the lease to own (that’s capital) and ' lease to use ' (that’s operating). Those two leases, capital and operating, dominate the Canadian marketplace.


Those big boys we referred to, major corporations tend to use operating leases for some sophisticated reasons such as balance sheet ratios, cash flow coverage covenants, return on equity goals, etc. If you are a small or medium-sized business these same operating leases simply could provide you with two things, a lower monthly payment, and some great flexibility at the end of the lease term.


In summary, there are some major differences in dealing with technology leasing as opposed to other types of assets that might be in your budget. Many of the ' tricks' those larger corporations use are available to the small and medium-size business owner. Understanding how these assets can be financed is important for any sized business. For extra expert help consider talking to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you in ensuring maximum benefits and flexibility.

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

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.

Technology Finance Via Leasing In Canada. From A Laptop To PC’s And Servers Equipt Financing Has Got Your Back!

Hitting A Bulls Eye In Technology Financing


OVERVIEW – Information on the leasing of computer, laptop, server, and tablet assets via a technology finance solution that meets the needs of Canadian business




Technology finance in Canada . Business owners and financial managers are always challenged about their ability to financing their technological needs, and that ranges all he way from laptops, tablets, personal computers , and the backbones of their infrastructure, ie servers, software, etc. They recognize the importance of technology in moving their business forward - they just struggle with the costs and the constant change.

Simply speaking they want to get the most out of their tech assets, at the lowest cost and capital outlay. It's the use of those assets that becomes the challenge in technology leasing - if only for the reason that obsolescence seems to set in awfully fast these days! Whether its a ' mission critical' need, or just operational in nature relative to your daily operations the owner/manager needs to understand the importance of acquiring technology in the right manner.

While many assets in your company have a long term use that's certainly not the case with your ever changing tech needs. That is simply why lease financing is by far the recommended by top experts method of acquiring these assets.


While normal leases in Canada run between to and 5 years it’s very common for computer leasing to be in the 2-3 year range, although as we have stated, the business owner does in fact have the option to utilize a longer term.

The overall process could not be simpler - you choose your vendor or manufacturer , negotiate your price and then your leasing company partner arranges payment with your vendor. In certain cases it’s optimal to have the mfr. finance your transaction if they in fact have a captive finance company associated with their business. Captives are incented to make transactions happen, and that means faster approval and occasionally more liberal credit approval criteria.

When you make a technology decision around new assets you have to focus on whether you wish to ultimately ' own' the asset, or if you wish to ' use' the asset for its benefits. That translates directly into one of two choices you have to make when entering into a tech lease - choosing between a capital ' lease to own' or an ' operating' lease to use. This is an important decision that must be made up front at the inception of your transaction.


When you wish to not own assets and if they fall into the category of a shorter life cycle then an operating lease will always be your best solution. At the end of the lease you have the right to return, upgrade, or extend your transaction, and if properly structured new technologies in your firm can be maintained under that same monthly payment you achieved in the prior lease. Pride of ownership is NOT a decision maker in tech finances!

Cash flow and budgets drive a lot of technology lease decisions. Business owners want to get the most out of their tech assets, while at the same time preserving cash flow and staying within their mandated budgets. While your software and hardware needs are key to operations and growth it’s your cash outlay that is often the biggest concern when it comes to constantly upgrading technologies.

We advise clients that it is critical to understand your obligations, and , more importantly, your option that exist in technology leases and financing. Such issues as the ability to terminate, upgrade, renew or buy are at the heart of tech finance.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your financing needs all the way along the tech food chain – including software, hardware, and other related asset categories.



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 10 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 :

TECHNOLOGY FINANCING SOLUTIONS AT 7 PARK AVENUE FINANCIAL


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com


























Stan Prokop

What’s Your IT Finance IQ? Technology Leasing And IT Computer Software Financing In Canada

Information on the IT Finance decision when it comes to technology leasing and financing of a computer system, software, and other tech assets such as software , servers, etc.


Here’s a free knowledge upgrade !



IT Finance and Technology Leasing. Whether you consider the acquisition of a computer system or other tech gear a cost or an investment it's important to know your ' INTELLIGENT QUOTIENT ' ( IQ) on what for many firms is a very significant either ongoing or one time expense.

There has never been a time when a competitive edge often is aided by a tech investment your company makes or needs. In the language of the people it’s all about the ' bang for the buck ‘, getting the most out of the minimum spend.

That’s where finance and leasing options around computer, software, and telecom type needs becomes a critical aspect of your overall decision. It's all about benefits you can achieve from the flexibility of a (proper) finance solution.

Naturally the benefits of a tech investment arent just financial, as we noted they are both operational in nature and in some cases might be a key part of your overall competitive strategy.

Numerous North American stats suggest that the majority of IT Computer solutions end up with a financing package attached to them. That is either driven by the vendor or your own expertise in the matter.

So what are those key reasons that Canadian firms choose to finance their technology. One major one is simply the fact that technology today seems to be a moving target, and your firm is often concerned with the ability to acquire the newest and the best at the lowest cost. A real irony in the industry is that in many cases cost goes down and benefits go up, not visa versa.

Secondly, a prudent busines owner, IT manager, and of course the finance manager want to be able to match benefits achieved over the long term with cash outflows. Yesterday we got a call from a corporate treasurer who had just found out his operational staff had ordered a 1.6 Million dollar ' simulator ' and delivery was forthcoming. (We’re of course assuming the operational staff had the authority to order that much?!). The Treasurers' challenge? How to finance and pay for the system !But our point is that based on a proper financial package of information that type of problem can be fixed in a matter of a couple of days via a lease financing approval .

Whether your firm is a medium sized or larger corporation it probably has a budget around the technology spend. Lease financing and proper structuring of a finance solution allows you to acquire and manage assets within that budget. For the SME business owner , whether there’s is a formal budget or not it always more often than not comes down to cash flow management .

In certain cases some firms certainly have the ability, or need to purchase technology outright. Proper use of any type of lease vs. buy analysis will usually guide the business owner, CIO, or manager to the right decsion.That when the investment should allow you to achieve competitive and operational efficiencies.

Never underestimate the power of a financing / leasing solution when it comes to IT and technology financing. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in making the right financing decision around what arguably is one of your companies most important and asset acquisitions.

7 PARK AVENUE FINANCIAL
CANADIAN IT FINANCING AND LEASING 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/it_finance_technology_leasing_financing_computer.html

A Big Fat Overview To Canadian Computer, Telecommunications And Software Lease Finance

Add Tangible Financial Value To Your Tech Asset Needs


Information on lease finance solutions around computer, software, and telecommunications equipment in Canada .





A big, fat overview..? Ok, we guess another term is simply called an ‘ introduction to ‘ and today it’s all about lease finance around the acquisition of computer, telecommunications and software purchases your firm requires.



Long term strategies around the acquisition of these types of tech assets are important, whether your firm is in the SME sector of perhaps on of Canada’s top 100 firms. It’s all about the issue around buying the most with what you got, as no one will disagree that tech assets are expensive. And when you have a combination of purchase power plus the financial benefits around the flexibilities that come with lease financing.



One of the key areas where tech assets such as computer and telecom equipment differentiates itself is that fact that savvy business owners and financial managers will view these sort of assets from a viewpoint of ‘lifespan’. In effect you are looking at these assets from a ‘ cradle to grave ‘ outlook – and that’s a smart thing.



We’re making the assumption you have chosen the software or telecom assets you require- now it’s a case of making those budgets work. Quite often your firm is in project mode, as you are in the position of contemplating technologies newest kid on the block, ‘ Cloud Computing ‘, or simply upgrading hardware and software licenses.



The eternal basics of lease finance apply totally to tech assets. When you are successful in obtaining the proper rates and structures on a transaction you have at the same time enhanced your overall working capital position, in effect conserving cash.



We spoke of the ‘ eternal’ benefits of technology leasing, one of those being upgrades to existing assets and projects. Can you think of another asset class that has as much importance tied to is as the ability to change, upgrade, refresh, etc. Quite frankly, we can’t.



Business financing has been a huge challenge for most firms over the last few years – a lot of those challenges are behind us and you’re now in a position to invest in growth assets such as IT investments that maintain your competitiveness.



In computer, telecom and software financing the key issues you need to focus on are documentation, the legals and terms around certain areas, and price structures.



Software is a growing area of lease financing in Canada. Typically we’re talking about application software, not internal software you may be developing or having a third party develop for you. Issues that you might have to address are source code, rights to use, etc. Thousands of firms finance software in combination with their other hardware and telecom needs.



Typical terms for leasing of such assets are 3 years, which is driven primarily from aspect of ‘ useful life ‘ of most tech assets. However all sorts of terms and amortizations can be structured that utilize a combination focus on your budget, the assets useful life, etc.



If your firm requires assistance on deciding whether you should buy or lease these asset classes, and if you want to mitigate the risks associated with technology financing consider speaking to a trusted, credible and experienced Canadian business financing advisor who can assist you with structures that makes sense for your firm.







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/computer_telecommunications_software_lease_finance.html

Technology Leasing Companies -Canada – Inside Info On Computer & Software Finance

If cash Flow and capital were no object the acquiring of technology assets wouldn’t be as much of a challenge as one would think. Canadian business owners and financial managers like to be on ' the inside ' when it comes to knowledge and competitive information - it’s just natural.

So we want you to be on the ' inside ' when it comes to technology leasing and financing. What companies should you be working with when it comes to financing of telecom, computer and software assets. We want you to know some of the tricks (can we call them that) that the big boys use.

Technology leasing has some different economics when it comes to financing. Some very powerful trends are in play. Is the trend your friend ? We will let you decide!

Your financial commitment to acquiring these types of assets is generally large relative to your overall capital budget; these assets tend to depreciate rapidly, and prices seem to be going down all the time... so when should you purchase? Boy, those are some interesting dynamics!

At the same time the benefits you receive from the use of tech assets are huge, not the least of which is your competitive position in your industry. So let's talk about overcoming some of those tech challenges

Many business owners are not aware that you can finance ' software ', either on a stand alone basis, or in conjunction with a hardware solution. But there is a key differentiator here, which is that it is much easier to lease application software as opposed to software you have developed. But larger, credit worthy companies can in fact get financing for software development on a project by project basis.

One of the interesting ways that the lessor protects himself in these situations is to ensure they have access to and rights to the source code you are developing. How is that handled, usually via an escrow agent who maintains updated access to the source code , with the provision that should the lease default the lessor has access and rights to that source code .


Term. It's all about ' term ' when it comes to technology leasing of computer and software. Leasing companies in general prefer a 3 year term for tech assets. Does that make sense? We think it does... if only for the fact that the dramatic changes in hardware and applications render anything older than three years as somewhat obsolete when it comes to technological change. So the bottom line is to be prepared to defend your need for a 4 or 5 year lease term when it comes to a depreciating asset such as tech.

It should be no secret to Canadian business that technology leasing is secured by the lessor in the same manner as any other assets , a PPSA ( Personal Property Security ACT) registration is made against those leased assets; registering the lessor collateral in the hardware and software described in your equipment list and configuration .

If there is one ultra important thing you should consider when looking at companies that will assist you in technology leasing of computer, software, and telecom assets it’s probably the type of lease that you enter into. Broadly speaking in Canada
you need to only focus on two types of leases - capital and operating. Is there an easy way to immediately pick which one is the most applicable to your need? It's not as challenging as you think, think simply in terms of lease to own (that’s capital) and ' lease to use ' (that’s operating). Those two leases, capital and operating, dominate the Canadian marketplace.

Those big boys we referred to, major corporations tend to use operating leases for some sophisticated reasons such as balance sheet ratios, cash flow coverage covenants, return on equity goals, etc. If you are a small or medium sized business these same operating leases simply could provide you with two things, a lower monthly payment, and some great flexibility at the end of the lease term.

In summary, there are some major differences in dealing with technology leasing as opposed to other types of assets that might be in your budget. Many of the ' tricks' those larger corporations use are available to the small and medium size business owner. Understanding how these assets can be financed is important for any sized business. For extra expert help consider talking to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you in ensuring maximum benefits and flexibility.



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 .Info re: Canadian business financing & contact details :

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

Work With Equipment Leasing Finance Companies For Industrial Equipment and Computer Financing Needs

The decisions need to be made - namely should you lease or buy your new industrial, business equpment or computing technology. And are equipment leasing finance companies your best solution for your business financing needs.

Sooner or later all companies in Canada need to choose between leasing equipment, understand the benefits of that finance decision, and most importantly know who to turn to or partner with for their leasing acquisition financing needs.

Let’s make sure you understand why you should carefully consider the key benefits of lease financing and ensuring you have made the best equipment acquisition decision. While it's a U.S. statistic, we're pretty sure that it’s the same here in Canada - namely that sooner or later over 80% of all business chooses lease financing as a business option for acquisition needs.

That eight out of ten ratio is a powerful one, so why in fact did those firms choose this method of business financing. The answer is actually quire easy, Benefits! Let's examine he key benefits you should focus on, and, as importantly, ensure you understand the costs, any risk, and the processes involved in making a solid leasing decision. It's all about doing your homework, being prepared, and working with the right parties.

So let’s first recap those benefits. The bottom line is flexibility, and with this type of financing what else could be more suitable. Simply because whether you are a start up, or Canada's largest corporation, whether you are leasing a photocopier, shop floor equipment, or computing technology... you guessed it, equipment leasing finance companies do that... for your firm !

Worried about your equipment or assets becoming obsolete - (think computers!). Don’t worry; simply match your lease to the term of the expected useful life of your computers, telecom equipment, software, etc. Worried about being burdened with asset disposition at the end of the lease term. Don't be. Simply enter into an operating lease that allows you full control in returning, keeping, or even upgrading that asset.

It of course always comes back to cash flow, and we can assure you that it’s easier to make a 3k monthly payment than to write a cheque out of your operating line of credit for 100k. Whether it's computers, industrial business equipment, or your corporate jet it’s always about cash flow and working capital conservation in business. Having just come through the 2008-2009 recession cash flow and its conservation still remains king.

There are many slick tools to determine whether you should lease or buy assets - they are available everywhere. We always encourage clients to make an informed lease versus buy decision for their asset financing needs. And, getting back to those benefits, numerous accounting and tax implications also play favorably to the leasing decision.

Are there any disadvantages to lease financing? We don’t really call them disadvantages, but there is no perfect holy grail for business financing, and when you lease you should understand of course the agreement is non cancelable, might have miscellaneous admin fees attached to the transaction, and on occasion a down payment or first and last months payment might be required for credit reasons .

So, whats next then? If you want to meet your equipment leasing finance needs seek companies that are your best partner for asset size, your firm’s credit quality, and suited to your geographical needs. Don't have a lot of time to investigate the process? Simply speak to a trusted, credible and experience Canadian business financing advisor who will work through the process with you, successfully.




-

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/equipment_leasing_finance_companies_computer.html