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How To Get Best Leasing Rates From Equipment Financing Companies
When it comes to using leasing companies for equipment finance in Canada is there a road map that Canadian business owners and financial managers can use to ensure they are getting the best solutions, rates and structures for acquiring business assets. We think there is a basic road map that can be followed to ensure asset financing success.
6 Paths To Great Lease Rates & Equipment Financing Solutions
So what would the elements of that road map be? We think it comes to the following categories :
1.Solid structures, interest rates and terms- typical lease terms are 36-60 months but for some assets 72 months might be available
2.Understanding the benefits, and yes the risks of lease finance
3.Ensuring you have chosen the right lease with a monthly payment and term that supports your financial needs
4. Understanding the accounting and tax implications of your transaction- documentation is key and the lease payment may include miscellaneous items not planned for, ie service agreements, etc.
5..Troubleshooting to ensure you're dealing with the right lease company
6.Utilizing Proper third part assistance when needed for purchase of the equipment and vendor negotations
When you have those points covered off we're pretty sure you are very close to having a solid road map in front of you for the equipment lease journey.
There really isn't another more popular method of financing your business asset acquisitions in Canada and the U.S. In fact billions of dollars of assets are financed every year, and the ability of your business to acquire assets with financing that comes with other benefits make this business tool extremely popular.
CAPITAL LEASES / OPERATING LEASES - WHICH ONE IS RIGHT FOR YOUR BUSINESS
The actual asset that your firm acquires has both a useful life and some economic and hopefully operational value to your business. In many cases these assets will have a residual value. That's where it’s important for you to ensure you're still following some of our road map issues - namely understanding who to deal with and what type of lease you choose. Those two choices boil down to lease to own (capital lease) and lease to use (operating lease), and how you address the end of the lease options you have.
How you shape and negotiate your payments around that asset is what makes you a winning in dealing with leasing companies. Equipment finance rates themselves are important, but at the essence of this financing, tool is the fact that you have access to a lot of structuring tools that come with both risks and opportunities for you and your chosen lease company.
When it comes to types of equipment that you can finance almost any asset can be leased, and that includes technology your firm might need, medical equipment, personal protective equipment, or even application software. Yes, software leasing and financing is available. New equipment, as well as used equipment, can be financed - Note though that used equipment should be part of a commercial business to business transaction.
LEASE FINANCING IS ALL ABOUT MONTHLY PAYMENTS TAILORED TO YOUR NEEDS
Typical benefits associated with a leasing company include the ability to match monthly payments to cash flow streams that make sense for your firm relative to the original purchase price. Many industries are capital intensive and use leasing extensively to conserve cash. Despite all the flexibility that is offered with lease structuring more often than not the business owner and manager simply want to know that a regular fixed monthly payment is a known factor they can readily deal with.
USE THESE LEASE TOOLS TO MANAGE CASH FLOW IN ACQUIRING ASSETS
When equipment finance rates and monthly payment values from a leasing company are critical you have access to a number of solid tools -. They include lengthening the lease term, including a residual value in your structure, or negotiating lower down payments.
CONCLUSION
If you want to maximize the leverage your firm has in acquiring assets through leasing companies spend some time on our key road map points and protect your interests and assets. Approvals are quick and flexible in lease finance and it is not unusual for smaller deals to be approved within 24 hours! Using your business line of credit due to a good interest rate is not the best allocation of cash and you are making the mistake of matching short term cash availability to long term assets.
Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with commercial equipment leases or a business loan to meet your asset acquisition needs.
7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Click Here For 7 PARK AVENUE FINANCIAL website !
7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.
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. He is an experienced
business financing consultant
.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 financing 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.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020
