Asset Financing Therapy : Equipment Leasing Companies Deliver On Finance Challenges

Looking for the best odds in financing new assets?

OVERVIEW – Information on asset financing solutions in Canada. Equipment leasing companies deliver on your finance needs

Asset financing in Canada sometimes just requires a certain level of ' therapy '

when business owners/mgrs consider acquiring new assets.

Solutions provided by leasing companies in effect provide your best odds (even if you're not a betting person!) in solving that business finance challenge. The dictionary defines ' therapy ' as an ' act that relieves tension' and equipt finance solutions certainly do that when it comes to the challenge. Let's dig in.

Leasing is all about using and not owning - that’s the basic simple premise. The reasons why 80% of all North American businesses at some time or regularly lease assets is that they want to use cash for running, expanding, or growing their business - sometime even buying another business.

Where it gets tricky is knowing which lease company to use as the industry is somewhat fragmented. You can deal with an independent firm, or in some cases divisions of large corporations or banks. The end solution will always be the same though - access to capital to buy equipt with a monthly cash flow outlay that matches your firms financial profile.

If there is one standout feature of equipment leasing companies it's their ability to provide special expertise for a lot of industries that are not mainstream, or where asset life and specific use is unique. By the way the other standout feature of lessors is that it is generally acknowledge by all experts that lease financing is easier to obtain than bank term loans.

Is there a clear path to understanding when the lease finance solution will work for your firm? In fact there is and we think we can summarize it as follows:

Owners/mgrs seeking lease finance should understand the length of time the asset will be in use at their business

Will the asset still have value at the end of the lease and who is best to address that value - you or the lease company - that is reflected in your monthly payments by the way, especially in ' lease to use' transactions such as operating leases

What is your cash flow situation relative to credit approval and cash outlay?

If you're looking to beat the odds in asset financing needs seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you with your equipt finance challenges,.


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 - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com

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

Be An Unlearner ! Lease Finance Sources In Canada . Choosing Equipment Leasing Companies

Equipment Leasing In Canada


Information on finding lease finance solutions in Canada . Which equipment leasing companies suit your needs?




Lease finance in Canada. Isn't it perhaps time to become an ' Unlearner '? That's the term one American icon once used to reiterate the fact that maybe we need to change the way we're thinking; and when it comes to what you know or might not know about equipment leasing companies in the Canadian marketplace that just might be some sound advice.

Your firms ability to identify who to deal with and when , depending on your leasing needs will ultimately make it a winning scenario for your asset acquisitions via Canada's most popular method of equipment finance.

While the ' lay of the land ' might in fact seem complicated the reality is that you simply need to focus on the fact that its all about getting the right lease structure, ensuring that the rates and payments meet your overall needs based on cash flow and your firms credit quality .

The old term ' size counts ' is somewhat still appropriate in lease finance in Canada. By that we simply mean that ultimately both the type of asset and size of your transaction will really chart the course for which lessor makes the most sense for your transaction.

We can say in a very straightforward manner that the overall ' story ' your company presents relative to financial strength, the quality of your balance sheet and your years in business are really the key drivers in any lease approval .

However, that eliminates thousands of firms in Canada who might not necessarily have those pristine balance sheets and income statements we've just referred to. Then what?

Well, don’t despair , because the reality is that the term ' structuring ' comes in play at this point, and those thousands of firms who might think they cant get financed in fact are solid candidates from certain firms in the Canadian lease finance industry . Yes there might be less interest in your deal from certain firms, but many others are eager to step to the table and structure a transaction that's a win for both parties.

But how do you in fact find equipment leasing companies in Canada - and we mean the right ones, not the wrong ones. Of course larger corporations who are better known can issues tenders and RFP’s, but that doesnt make sense for the SME sector in Canada.

This then is the time to get a short education on the make up of the lease industry in Canada. Essentially it's broken down into three segments, small, mid and big ticket. We advise clients they can spend a lot of time soliciting lease financing in the wrong market segment. And within that market each lessor has their own views on credit quality and the type of asset they will finance.

Small ticket transactions in Canada, as well as the U.S. typically are under 25k and at this point it’s all about quick credit approval, simple documentation, (often a one page lease) and a rate that commensurate with your credit quality.

Independent finance firms make up the majority of the lease financing market in Canada, but there are many captive finance firms that provide financing for their parent companies products. Banks have again resumed their strong interest in lease financing - rates are low but required deal sizes are much larger ; and when it comes to credit quality with a bank lessor lets just say ' you better have it '!

An easy way to match your needs with the perfect lessor is to solicit the help of a trusted, credible and experienced Canadian business financing advisor who understands the players, the market, and, most importantly , your needs.




7 PARK AVENUE FINANCIAL
EXPERT CANADIAN LEASE FINANCING



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_finance_equipment_leasing_companies_canada.html

Which Of The 3 Asset Financing Structures Works For Your Firm ? Right Choices With Equipment Leasing Companies in Canada

Types of Lease Financing In Canada



Information on asset finance structures available to Canadian business owners via equipment leasing companies . Picking the right structure is crucial to lease finance success.



Making the decision to utilize equipment leasing companies for asset financing might involve a decision you may not have properly considered... and it’s an important one... Which type of lease best suits your needs on this particular transaction?

Canadian business owners and financial managers essentially have 3 choices when it comes to matching up their asset finance acquisition to the right type of structure, and that includes the accounting and tax treatment also. Let’s examine those 3 choices and ensure you are properly positioning the financing of that asset.

The ' Go To' transaction that most business owners consider when they start to work with equipment leasing companies in Canada is the ' finance lease ‘... aka the ' capital lease ‘ ...and a final aka .. The ' lease to own'. Choosing this first of our three choices has you focusing on one thing, owning the asset at the end of the lease term.

The key factors that you need to consider under this type of transaction are the interest rate, what you will do with the asset at the end of the lease term, and any accounting and tax considerations that might come into play based on the asset you are financing as well as the size of the transaction.

We always caution clients that if it is their true intention to own and keep that asset that they double ensure that equipment leasing companies don't structure the asset as being the properly of the lessor at the end of the lease . Naturally they don’t want to own and use the asset, but they do want to try to re lease it to you or sell it to you... after you have paid for it in full once already!

Interest rates are a key part of the transaction in any equipment lease deal. There are 5 elements in any lease pricing transaction - term, rate, and payment, value of the deal, and future value at end of term. If you know 4 of those any simple financing calculator will allow you to calculate the missing piece of the puzzle.

2nd type of lease. It’s an operating or fair market value asset finance transaction. While it’s a favorite of our clients it’s important to ensure you level the playing field with equipment leasing companies in Canada that offer this type of transaction. The operating lease is all about one thing, flexibility.

So, properly structured you have just entered into lease finance nirvana when you consider a fair market value lease transaction. Why? Simply because at the end of the lease term you have the option to purchase, return, or upgrade and extend the transaction. Operating leases are perfectly suited to technology and heavy equipment type transactions, due in part to the size and use of the asset.

Our third and final type of lease is not necessarily a lease type per se... it's the sale leaseback .Typically structured as a capital lease, but not necessarily, you are selling he asst back to the leasing company. Your key benefit - cash flow and working capital on an asset that otherwise was only sitting there! Almost all types of real properly assets can be financed back under a sale leaseback type scenario. On alternative to the sale leaseback that is shorter in nature is to consider a bridge loan as opposed to entering into a finance transaction with equipment leasing companies.

The bottom line? As always, its stay informed and gets the right advice on which type of asset finance transaction structure works best for your firm. Speak to a trusted, credible and experienced Canadian business financing advisor on which structure maximizes the benefits for 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/asset_finance_equipment_leasing_companies.html