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Information on the equipment capital financing options all businesses should consider when acquiring new or used assets to grow their business
Lease financing is one key method that allows that to happen. At the heart of the equipment capital lease financing solution is the premise that business owners want to use equipment and assets for a specified period of time, while at the same time not wanting to outlay huge amounts of capital and use line of credit facilities that otherwise might be used in day to day working capital facilities .
To put it simply, business owners and financial managers want to use assets, but they don’t necessarily want to pay to own them – and they certainly don’t want to mis – appropriate large amounts of capital as down payments or payment in full for ownership of a depreciating asset.
The hard reality is that equipment capital and lease financing is available to every business in Canada, whether you are a start up or a major Financial Post 100 corporation.
In today’s competitive environment it’s all about staying ahead of the curve, and business owners want to ensure they have the fixed assets in place that will allow them to grow profits and revenues.
Accountants and miscellaneous financial advisors will also tell you about the other benefits of equipment capital financing, which include balance sheet benefits and income statement benefits re taxes, depreciation, etc. Those truly are great benefits, but the bottom line is that when you acquire assets through a leasing you are profiting form use, not ownership, and we advise clients that is a very powerful statement.
All business owners and financial managers know that it’s all about cash flow, and your ability to both save on capital outlay and acquire much needed assets is the key benefit of equipment capital leasing.
When you are well informed about lease financing options in Canada you have the ability to enter into lease contracts which have several other benefits – i.e. you can finance delivery, installation, maintenance, etc. Prudent business owners will match the term of their lease to the expected use of the equipment. For example, why would you buy computers outright, or mistakenly lease them for 5 years, when in fact the reality of computing is that you will replace them every 24 months or so, if not sooner . That’s what lease financing flexibility is about. In many industries prudent business owner’s use lease financing as a roll over strategy – they continually on a regular pre determined basis acquire new assets which are rolled over into a new lease arrangement.
Utilize equipment capital and lease financing wisely – understand your options, and work with a trusted advisor in this area of Canadian business financing. Use asset acquisition as a key strategy to remain both competitive and profitable.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
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 .
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
