Commercial Leasing Companies : Succeeding In The Potential Of Equipment Finance In Canada

Which Of These Would You Pick When It Comes To Lease Financing In Canada ?





OVERVIEW – Information on solutions offered by commercial leasing companies in Canada . Equipment finance is all about knowing your options and wading through the marketing and business jargon

Equipment finance in Canada is all about ' simple ' and ' easy ‘. Why then do some of the issues around solutions via commercial leasing companies mystify clients? We think we know some of the answers. Let's dig in.

Although it’s been around almost forever some of the issues are lease financing constantly evolve. Whether its the recent major change in operating lease finance ( good bye forever dear off balance sheet financing friend !)

or taxation issues our clients can be forgiven for trying to understand which benefits mean the most to them .









Part of the problem also revolves around the marketing and information provided in the highly competitive equipment lease market. Today in Canada solutions abound from captive finance firms attached to mfrs and dealers, independent commercial lease firms that are both Cdn and U.S. owned, as well as Canadian chartered bank solutions offered by their leasing divisions or subsidiaries.

Case in point? Which of these 3 payments would you prefer as a monthly installment on your lease? Let's use a $100,000.00 transaction as an example.

SOLUTION 1 - $ 3133 / MO

SOLUTION 2 - $2640.00 /MO

SOLUTION 3 - $2516 /M0


While most of our clients will say - ‘We will choose the lowest one!" the reality is they are essentially all the same transaction - just structured differently to suit your company's specific needs around cash flow and ultimate use of the equipment.

Let's explain.

Solution 1 is a three year lease to own scenario. Payments are fixed and you're obligated to make 36 equal monthly installments at a specified interest rate. We have used 8% as our example in all calcs.

Solution # 2 is what is known as a bargain purchase options, whereby, mainly to reduce payments during the initial term, the client has the ability at the end of 36 months to refinance the remaining balance, in this case 20%, or to simply pay it out at its option.

Both transaction 1 and 2 have the owner owning the equipment at the end of the lease.

Solution # 3 is our operating lease - coming in at the lowest payment the obligation at the end of the 36 months is to return, purchase, or upgrade or extend the lease according to specific needs of the asset and your firm.

By the way, seasonal or skip payments can also be added into any of the above scenarios, often used to address cash outflow challenges in many companies and industries.


The predictable cash flow in equipment finance is a solid benefit when it comes to cash flow challenges - and more often than not newer or more expensive equipment can be more easily facilitated via the ' low monthly payment ' lease option that matches benefits to useful equipment life . Very important for assets that help generate revenue!

What we have shown is that you have different options according to needs and the inherent flexibility offered by commercial leasing companies. They help the business owner determine the best decision in that ' lease vs. buy’ decision that is required.

Bottom line - While an interest rate and financing cost has to be competitive it's as important to look at the payment and lease structure flexibility. If you're interested in ensuring you have all the options on the table from commercial leasing companies in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can ensure your equipment finance needs are met .





Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCE EXPERTISE




Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?

CONTACT:
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 '

Stan Prokop

A Commercial Leasing Company : Your Ride To The Top In Canadian Equipment Finance Needs

What Do The #’s 3 And 10 Have To Do With Lease Financing In Canada – Answer : Everything

OVERVIEW – Information on equipment finance in Canada. The commercial leasing company offers asset acquisition solutions if properly understood and utilized

Equipment finance needs require knowledge of the 3 and 10. Knowing what a commercial leasing company does, and how it works relative to your acquisition needs puts you in a position of equal power when it comes to asset financing. That new found knowledge becomes your ' ride to the top ‘.

Let's dig in.

Let's first cover off the 3. There are essentially 3 types of lease firms you should be working with. Not working with the right one has the strong potential for wasting time and expense.

As we have said there are different ' types ' of organizations that offer the asset financing you need for your fixed asset acquisition needs. Knowing which source to access for a particular need is a valuable knowledge tool for the business owner/financial manager.

While Canadian chartered banks are not always first to think of when it comes to equipment lease more and more of Canada's banks have entered the leasing market. They either own, or operate numerous lease firms. To qualify your firm must be credit worthy with an appropriate mix of profits, assets and cash flow. Bank leasing is available in small, mid and large ticket transactions. Larger transactions are often tied to your total banking solution.

Many mfrs also offer financing services. They do this directly, via what’s known as ' captive ' financing, or they partner with firms that offer lease financing to their clients. Captives use financing to increase sales as much as generate lease profits on finance costs. As a general rule you will always get a better deal on price, terms and structure when offered by the mfr. - in some cases the rates are even subsidized to enhance the financial offering.

The bulk of commercial lease financing in Canada is offered by independent commercial lease company. Whether Canadian or U.S. owned they offer the widest variety of funding sources, with many specializing in deal size, industry niche, geographical location, or credit quality focused. By the way, many firms that might not qualify for bank or captive financing can have leases structured to qualify for financing. While they might mean a down payment, a shorter amortization, etc in the end it’s the approval that counts to the business owner.

Let's move on to the 10’s. Here we are talking about specifics you need to address in constructing a finance lease that makes sense for your asset acquisition. Those ten issues include: conveying the use of the equipment to the lessor, working with the right lease company, understanding the final monthly payment relative to your cash flow, mid term lease flexibility, insurance .maintenance needs if applicable, upgrade options, end of term obligations, returns if equipment is not going to be owned, and finally any miscellaneous costs associated with the lease.

A simple checklist could be constructed to ensure you've covered off all the bases. Not knowing the real story on any of our ' 10 ' ultimately will cost you time and money.

So there you have it. The 3 and 10 covered completely! An alternate level of comfort? 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 commercial leasing company and equipment finance needs.


Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT LEASING & FINANCE EXPERTISE


Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
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 '

Stan Prokop

Leasing Financing In Canada. Equipment Finance In Canada Can Be Difficult Only If You Want It To Be

Asset Financing Needs Happening In Super Slow Motion


OVERVIEW – Information on leasing finance in Canada. Is There A Better Way to Manage Equipment Finance needs



Leasing Financing in Canada. Does it sometimes feel that you're fixed asset needs are travelling in Super Slow Motion? That undesirable speed doesn't have to be the case in equipment finance. Let's dig in.

Successful Canadian business owners and managers in Canada recognize that at certain times in their business cycle they need to obtain the right assets to grow and operate the company. They are of course restricted for many reasons, one of them being: Cash!

You may be dealing with a number of different suppliers and vendors that are critical to your business - they include your technology needs as well your manufacturing and rolling stock.

In many cases it makes tremendous sense to seek out financing from the actual vendor itself. Larger successful brand name firms often offer in house financing for their products and services. They might be doing the lease financing themselves, or partnering with a financial institution to make the acquisition easy.

Even your firm could do this with your own products /services by the way if that is common in your industry, but that's a subject for another day.

One of the challenges for firms who utilize asset financing via leasing is the issue of who to deal with. No knowledge of the industry players will have you potentially dealing with companies where you won’t meet their approval criteria. Other factors include the dollar size of the transaction, the nature of the asset you are financing (that’s where specialized players in equipment finance make sense) as well as geographical limitations.

In some cases it makes a lot of sense for you to investigate operating leases. That makes tremendous sense when looking for financial solutions for needs such as technology, or for your truck and car needs. That solution allows you to lower acquisition cost, monthly payments, etc. You're using the assets with the intent of not owning them when you're considering an Operating Lease.

One other area to ' beef up ' your knowledge in equipment finance is the area of terms and documentation. Here's where some good information and advice can save you thousands of dollars around your rights and obligations in a lease.

Top experts in the field say that at the end of the day you should have three goals in leasing financing:

1.Getting the access to capital that you need to grow your business and maintain the competitive edge

2. Manage costs

3. Risk avoidance re obsolescence of assets, interest rates, etc


One final tip - Consider a lease line of credit option. One initial approval process can allow you to be pre-approved for all your asset finance needs. That allows you to focus on putting those asset finance needs into ' warp speed ‘ ... not slow motion.

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 leasing financing needs.



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 :

http://www.7parkavenuefinancial.com/leasing-financing-equipment-finance.html




CONTACT:
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

Equipment Finance In Canada. What Are Great Lease Financing Companies Worth To Your Business

If Perfect Asset Financing Was Real What Would It Look Like?

OVERVIEW – .Information on equipment finance in Canada . Let lease financing companies bridge the challenge of asset acquisition for the growth of your business




Equipment finance in Canada . Is it possible, clients ask, to achieve asset financing ' nirvana' when it comes to running and growing your business? Lease financing companies just might be the solution to that eternal conundrum of acquiring equipt. you need for your company. Why? Let's dig in.

Leading experts tell us that 80% of North American companies use lease finance when acquiring assets. So when the Canadian business owner / financial manager understands how the leasing marketplace runs they are immediately ahead of the game Just investing some time in the basics we have always maintained can save you thousands of dollars . Simply things like knowing how a lease finance firm generates a ( fair ) profit, how they evaluate your firm and asset finance request, and even simply saving tons of mgmt and ownership time by knowing who the players are .

In Canada today you can pretty well lease any asset, many intangibles included, such as computer software, or service and maintenance contracts related to your acquisitions. The industry thrive on serving all aspects of asset size, from the small ' micro ticket ' transactions right up to and including that personal corporate jet aircraft you've placed an order for !

If your firm has solid credit, typically exhibited by growing revenues, cash flows, and profits that are reflected in your balance sheet you're even in a strong position to negotiate rates that are extremely aggressive these days. Even the banks have fairly strong ventured back into offering equipment finance via separate divisions within the banks. Although credit criteria are high interest rates and structure flexibility are extremely attractive.

Medium sized and larger corporations and governments commonly even find themselves in the enviable position of tendering out their lease finance business - thereby acquiring finance rates and terms that are the best within the industry.

It always helps to have some expertise backing you when you venture into the lease finance world as a ' NEWBIE '! That might include advice from a seasoned business advisor, accountant, or lawyer on financial statement issues related to your lease request, the type of lease you are choosing, how to protect yourself in the documentation process, etc .

If you know your business you should clearly know your firms assets and their values. A large part of the ' profit strategy ' of lease financing companies in Canada revolves around the bet that you'll return the equipment. So low monthly payments sometimes come at the risk of having to return the asset at the end of term, allowing the lessor to capture that ' reasonable ' profit we alluded to earlier.

We find many of our clients don't fully understand operating leases, as such they are seduced by low payments, and even what can seem like negative interest rates, not fully understanding their obligations at the end of the lease term.

Don't forget also that you can often increase your own firms sales by lowering the sales cycle time by implementing a customer finance program for your own customers if your product allows you to do that . You an easily align yourself with a finance partner that will work with you and clients to maximize revenues, eliminate client budget challenges, and simply make the adoption of your products ' hassle free '.

Business owners and managers never want to lull themselves into complacency when it comes to staying competitive. However, as we have shown a strong grasp of asset financing via Canadian equipment finance companies saves you money, time, and prolongs your competitive edge. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your asset finance needs.


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 85 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 :


7 Park Avenue Financial = Canadian Equipment Finance Solutions




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

Equipment Finance Canada. Finance Success Via A Leasing Company . Up Up And Away With Asset Finance Smarts

There’s No Real Dark Side When It Comes To Asset Finance !


OVERVIEW – Information on equipment finance solutions in Canada . What does the business manager need to know and look out for when selecting the right leasing company for asset finance needs

Equipment finance in Canada . It's probably just us but there is no real ' dark side ' when it comes to using this method of financing assets. So what do you need to know about the ' right ' leasing company, along with other key aspects of lease finance? Let's dig in.

There are of course a couple of methods to utilize when financing business assets. They might include a bank term loan, a bridge loan of a temporary nature, and even a spin on currently owned assets, i.e. the ‘sale leaseback '.

Every method works, but there are a number of reasons that top experts tell us that 80% of all North American firms (hey isn’t that Canada also?!) utilize lease finance.

Can the business owner and financial manager fast track equipment financing success? We think so, and it comes down to understanding who the players are, what the offering is, and what the upside and downside benefits and risks are.

Risks? While we can say that the downside risk of lease financing is small, it becomes only apparent due to a lack of misinformation by your firm, the lessee. If you enter into the wrong type of lease (there are only two choices - capital and operating) you run the risk of losing money on the final residual value of the asset. Also, if you weren't ' tending your store ‘properly and didn’t attend to the maintenance and insurance issues that come with any lease obligation that could also pose a problem.

Other risks? Well they might include improper tax and accounting treatment on your financials, or worse, losing out on the benefits that do in fact come with accounting and taxation issues as they relate to lease finance. One final point - non payment results in asset repossession - surely that one was obvious!

So, while some of those above referenced issues could be deemed ' the dark side ' the reality is that it should be obvious to Canadian business that a leasing company can provide a strong springboard to business success - i.e. it’s our ‘up up and away '!

You need to know how leasing works and that essentially comes down to understanding common lease structures and ensuring they make economical sense to you , in terms of both cash flow and the life and usefulness of the asset . To us it’s a bit unfortunate that owners/managers continually focus on interest rates only when they are searching for lease solutions. While that is an important part of the equation they forget that the documentation, their obligations, who they are dealing with, and end of term flexibility is key to asset finance success.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in meeting equipment finance needs via expertise that makes this method of financing a winning solution.


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 :

7 PARK AVENUE FINANCIAL = EQUIPMENT FINANCE
















Stan Prokop

Is There A Difference Between Truck Leasing And ‘ IT’ Leasing ? An Equipment And Technology Finance Surprise ?

Is there a major difference in which assets can be financed?

Information on leasing and equipment finance . Do the same benefits apply to truck Leases and IT technology financing ? Business owners may be surprised!



At first brush is the answer ' Are we crazy?' How could there similarities between financing a transportation asset or entering into an equipment finance leasing transaction for new ' IT ' assets?

We actually think you will be surprised at some of the similarities which clearly brings home the point that various asset categories (whether it is a truck lease or for a sophisticated computer infrastructure ) lend themselves to a solid finance vehicle. And excuse the pun on vehicle!

Whether your Canadian firm is a start up or a ' mature ' firm (are start ups immature?) the need to access capital to either enhance the truck fleet or add hardware and software to your computing power remains the same.

Both assets , using today’s example are depreciating assets - many will make the case that truck and transport assets depreciate much more slowly than IT type assets, which seems to lose value very quickly if only for the reason that technology seems to change about every 2.5 minutes these days!

So does lease finance have an answer to both those asset classes? It does, and it's all about picking one of two leases that fit what the industry calls your ' end of term' strategy. So it might be a more sophisticated operating lease for your computer IT solution, and it might be a long term capital lease ( a lease to own ) for your truck finance.

Naturally you can buy depreciating assets, no one is forcing you to choose leasing in a ' lease vs. buy ' analysis... but the reality is that unless your cost of capital significantly exceeds a lease total cost that financing is more often than not the right choice. And don't get us started on the very high cost of equity capital which is a whole new kettle of fish.

Naturally it makes sense in any business financing strategy that your feel the cash flow required to pay the lease can be met even when things are tough.

Companies use assets to generate value, so whether its a transport truck asset to deliver your products or perhaps a new IT computer / software system to make your operations more efficient and competitive.... a lease finance strategy , a proper one by the way, simple accelerates your ability to fund new assets and the growth of your firm .

The proper lease strategy will allow you to both replenish and upgrade assets, or make key decisions around what will happen to the asset at the end of term. In today’s example for instance we could replace a truck with a new one, keeping our monthly payment the same ... of we could return IT assets to our vendor for an upgrade of newer technology... with... you guessed it, the payment remaining the same.

An interesting side point is how valuation decisions are made on assets such as trucks or computers during and at the end of lease. In the real world (that’s where we work) it comes down to best inputs you can provide, along with value opinions that might come from an appraiser, your experienced equipment finance company, or research on the internet at best values.

Hopefully we have made our point - whether it’s financing rolling stock type assets where key factors such as physical condition, safety and maintenance come into play... or the other end of the spectrum , IT type assets that of often require large capital outlays around changing technology .

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in determining the value of equipment finance, whether it’s your trucks... or computers!

7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCE 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/leasing_equipment_finance_truck_it_technology.html

Business Leasing & Equipment Finance Canada – Do You Know These 4 Secrets Of Lease Financing ?

Don’t Overlook These Lease Finance Benefits !


Information on business leasing in Canada . How to maximize the benefits of equipment finance via lease financing tactics to finance new or used assets .



Business leasing and equipment finance in Canada. Does your firm take advantage of these 4 secrets of lease financing in Canada, thereby maximizing the benefits of an already proven business finance tool used by 80% of North American ( that’s Canada too by the way !) business.

Let's focus on some of the advantages of leasing, thereby giving you some great reasons to consider entering into a lease when your firm acquires assets. Yes there are other ways to acquire assets - they include term loans, or putting in additional equity into your company but time and time again Canadian business owners and financial managers come to realize that lease finance is competitive and offers some of these ' special ' advantages that arent available elsewhere .

So, is lease financing the right decision? Let's examine secret # 1 - which simply speaking is your ability to get 100% financing on. And even if a down payment is in fact required 90% financing, as an example surely isn’t a bad thing. Oh and by the way, the additional costs that you might have to incur in acquiring an asset, i.e. delivery, installation, training, maintenance, etc. can easily be bundled into your transaction. If you went the term loan route many of these softer costs couldn’t be financed and therefore drain your cash flow.

Secret # 2 in business leasing. It's your ability to be a ' hedger '. A hedger? We mean of course a hedger in terms of an inflationary environment. As you make your payments over time the lease company that receives your cash of course recognizes that’s its worth less over time whenever there is positive inflation in the economy. They lose, and you win. Naturally this is probably not the greatest economic decision driver when you acquire and asset but its one more positive in the lease advantage scenario. And since lease terms are available anywhere from 2- 7 years typically you keep on being the winner.

Secret # 3- In your kingdom of business, cash flow is king. We all know that .The drain on cash flow in your company can be offset by utilizing lease financing. Firms with good credit ratings can get great rates these days, and even firms that have credit challenges are able to take care advantage of ' structured ' transactions, allowing them to acquire the asset under perhaps a shorter term or higher monthly payment.

Secret # 4- The lease financing transaction typically is complimentary to your overall banking and debt strategy. Banks or other institutions might have what we call ' negative covenants ' about how you run you business from a financial ration perspective. Leasing can often address your other loan covenants with lenders in a positive manner, but we do caution business owners and financial managers to review their covenants prior to entering into a lease.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing asset finance needs.







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/business_leasing_equipment_finance_lease_financing.html

DIY Equipment Finance & Leasing Canada ? Best Companies for Asset & Lease Equipment Needs

When the Canadian business owner or financial manager looks to the leasing of an asset, as opposed to a purchase it’s a great time to invest in some knowledge around which companies to approach for equipment finance needs.

But can you be expected to be a ' DIY ' expert in this broad area of Canadian business financing. What we are saying is that it will pay you handsomely to either invest some time in understanding some key fundamentals of equipment finance, or, alternatively work with an expert who can assist you.

Why invest some time in this type of business acquisition? Simply because the Canadian lease landscape has evolved significantly over the last couple years. A combination of the economy in Canada, the lease industry players, new accounting rules and a myriad of product offerings can make it seem daunting.

By the way we're quite sure any business owner can work with lease companies and enter somewhat quickly into a lease for an asset, but is it the right lease and what are the financial implications and benefits or lack of benefits around that transaction. That’s the $ 50,000 dollar question!

Because almost 80% of all business utilize leasing Canada - that’s why it sometimes is both easy and mis- understood. Many business owners simply don't either under the lease product/service offering, or, alternatively fail to recognize the benefits. Yes, its only one method of financing an asset (you can consider a term loan)... but when a lessor / lease company’s recognize you know what you're talking about you have simply increased your chances for success.

Lease and equipment finance doesn’t bring cash flow and working capital into your company, but boy does it reduce the amount of funds that go out of your firm! The ownership of the equipment from by the lessor, for the term of the lease allows you to structure payments, write off payments as an operating expense, and more importantly keep you ' nimble' when it comes to assets and technologies that you finance over short or long terms. (Typical lease terms in Canada range from 3-5 years).

Business owners might want to do the math but we're quite sure that if you work the numbers it makes sense to enter into a couple of short term equipment finance transaction rather than purchase/buy outright the same assets over a number of years.

If you do invest time in understanding some lease finance basics, or alternatively work with an expert you'll see that you can actually determine when it makes sense to either upgrade, return, or renew any lease finance transaction.

Can our DIY lease financing business owner affect the final credit and structure approval of his or her transaction? The reality is that tougher credit standards are in place since the 2008-2009 global recessions. Therefore the industry focuses on creditworthy lessees- but the good news is that some basic structuring around any transaction can still make your deal happen. Issues such as term, pricing and down payment can be negotiated to the point where it makes sense for the lessor and your firm.

Working an experienced Canadian business lease financing advisor can ensure you get the best pricing, structure, and achieve the benefits you're looking for.

So, everyone’s talking about ' DIY ' these days. Why not invest some time in developing a solid relationship with a lease advisor? Success in asset leasing allows you to grow your company with the assets you require... 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 .Info re: Canadian business financing & contact details :


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

The Best Tools and Resources for Equipment Finance and Asset Lease Success - A Canadian Leasing Equipment How To !

It's your call, but if your firm has ever experienced a challenged in purchasing an equipment asset it’s about time you understood the benefits and flexibility of equipment financing via a leasing strategy.

The reality is that for most Canadian firms not all benefits attached to leasing equipment will necessarily make sense for you, but your ability to capitalize and maximize on those benefits that do will save you potentially thousands of dollars.

Today’s business world is all about competition and your ability to acquire an asset lease allows you to win the battle against deprecation and obsolescence. Quite frankly though many firms actually acquire used equipment in a variety of asset categories and this part of equipment finance in Canada is a booming one. The recent 2008-2009 recession left a glut of assets in many industries such as printing, construction, etc.

When it comes to technology financing though new is probably better, and that’s where lease financing shines. When you consider the relatively short time span it takes to arrange such a lease it often becomes a true advantage over a loan or bank term loan scenario .

Clients often ask what the ' entry points ' are to leasing in Canada. Frankly assets from three thousand to the millions are leased everyday in Canada - the bottom line is that equipment finance doesn’t discriminate against size. Stats available in the U.S. and Canada suggest that over 80% of firm lease equipment at one time or another.

Is there one constant driver in the search for great asset lease solutions? We think that more often or not it’s limited capital. Clients seem to feel that the most efficient use of their working capital and cash flow is the ' driver ' for their search for leasing equipment options. And as we said, that goes from hi tech, to low tech, whether you are financing newest computer and software technology, or refurbishing plant and equipment or transportation ' rolling stock' type assets.

As a Canadian business owner your preference is for choices. Asset lease transactions provide you with those! Focusing on either the type of lease you are acquiring, the need for a specialized term (leases generally are available for terms of 24 months to 7 years - depending on the asset and your firms overall credit quality.

Many smaller and medium sized firms don't take advantage of operating leases when considering the equipment finance option. This strategy can lower your payments, perfectly match the use and term of the equipment to your needs, and create balance sheet and accounting enhancements that will allow you to acquire the latest technology without taking on long term debt.

And don’t forget our friend ' Bundling ‘. Do you know him? Most business owners don’t realize that a lot of soft costs around an asset lease transaction don’t need to be paid out in hard cash. They can be in effect ' bundled ' into a transaction - typically these items include maintenance, warranty, installation, delivery, training, etc. That’s true flexibility.

If you want to be on the cutting edge of asset acquisition in today’s competitive environment then speak to a trusted, credible and experienced Canadian business financing and leasing advisor who can ensure a structure and approval that makes sense can be completed in a timely manner to your firms advantage.



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.parkavenuefinancial.com/equipment_finance_leasing_equipment_asset_lease.html

The Greatest Question Ever Asked About Canadian Equipment Finance and Leasing Companies - Let Your Company Join In!

It was a September night in 2002 - I will never forget it... the clouds rolled in ominously from the mountains as we drove... I strained to see the lights of home in the distance. Holley, my stepdaughter, 7 years old at the time turned to me and said ' I don't understand rent ‘. Wow I thought, great way to phrase that one! It's a true story. (Editors note - the clouds weren’t really ominous - he is using literary discretion)

Fast forward... 2011. Her better question today might be ' I don’t understand why hundreds of millions of dollars of equipment finance occurs every year in Canada.

Well if you didn’t know we're about to share that , and more importantly focus on highlighting some key issues around why all your competitors utilize equipment finance as part of their overall business strategy . And also, once we get you to ' buy in ' to the subject then we'll show you where to find the leasing company that works for you, not against you.

So why do start up, small and medium sized firms, and mega corporations utilize equipment finance companies to procure and finance their assets. One key reason is the emphasis placed these days on working capital. To finance the type of capital expenditures you need to stay ahead of the Jones’s (that’s your competitors by the way) you need access to credit and capital. And that capital varies in size, that’s the true beauty of equipment finance - it covers a 5k photocopies to a 20 million dollar aircraft.

And yes, it’s a free country, so feel free instead to dip into your operating line of credit of wait for A/R to be collected to acquire these much needed assets - but we can assure you the rest of the world instead has opted for equpment finance as an acquisition strategy. A harsher reality is that if you are a smaller company or start up you can't or don’t want to dip into additional equity for much needed new assets.

We will never not say the bank wont finance your equipment - but that financing, just to be clear becomes a term loan , and further ' complicates ' your banking arrangement , potentially adding new covenants, new collateral required, and diminishing the ability to get more working capital and cash flow down the road, when you need it .

So is there a real benefit in creating a ' relationship ' with either trusted Canadian equipment financing advisor or a leasing company directly?
Again, the ' ayes' have it; we absolutely feel that’s the case. Why? You benefit from the advice, counsel and structuring that can save you hundreds, thousands, or tens of thousands in financing costs, option flexibility, and tax benefits. Those are real world dollars we are talking about.

In fact, many clients opt to set up a lease line of credit, utilizing either capital leases or operating leases on an ongoing basis for asset or technology turnover. That’s when you have totally bought into the concept of lease finance. It in effect becomes your long term stated asset acquisition strategy.

How do you identify the best advisor or leasing companies to work with? Look for specific experience, credibility, references, and a track record of matching your equipment finance needs to rates, terms and structures that make sense.

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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_finance_leasing_company_companies.html

Considering Equipment Finance in Canada ? – Why Equipment Leasing Is Your Finance Advantage

Want some good news ? - Your firm has the ' home team advantage ‘. That common sports expression we think pertains to business when you are making use of all the advantages of equipment finance and equipment leasing for your Canadian acquisition needs.

A lot of the advantages of leasing are constantly being talked about - if you don’t know them by now it sounds like you are considering lease financing for the first time. Sitting down with clients it always becomes apparent to us that of all those advantages, and they are numerous, cash flow is often the most significant benefit to business owners and financial managers.

So, is cash flow still the ruling king, as we have heard it always was? Definitely, because when you utilize equipment finance solutions you in effect have created your own new line of business credit. And the restrictions, covenants, outside collateral, and all those other things you associate with a bank or term loan seem to suddenly have gone away with your equipment leasing solution.

Is leasing versus buying also considered a key advantage? That’s a question clients always ask. The reality is that there are somewhat complicated accounting, tax, and depreciation calculations that come into play on that issue - more often than not we think it’s a bit of a wash in our opinion. However, depending on the actual type of lease you use there could be some immediate apparent advantages.

For example, choosing a residual type lease, also know in the industry as an operating lease gives you the chance to experience a lower payment advantage, and lower payments are always a good thing ,

Want to devote a huge piece of your life to getting a term loan or bank financing arrangement in place for your new equipment. By all mans go ahead - but our clients have already beat you to the bunch, and we sure hope they are not your competitors, because they obtain lease approvals in a matter of a couple days - Canadian equipment finance leases are approved in a much more expeditious manner .

There is a term in business finance revolving around the concept of matching long term assets to long term debt. Simply speaking, using an extreme example, you wouldn’t use your entire business line of credit to purchase a plant equipment asset that might have a useful life of, say, ten years. All of a sudden the use of the operating facility for the purchase has totally eliminated your day to day operating cash flow, which is typically used to pay employees, repay loans, purchase product, etc.

And getting back out our old friend cash flow, the true flexibility of leasing, is that those payments you need to make can be structured flexibly around seasonality of your business, as well as the matching of the payment to the useful economic life of the asset .

So, in summary, how can you get the equipment finance advantage in Canada? Speak to a trusted credible , and experienced Canadian business financing advisor who will assist you in ensuring you have the right lease, a prompt approval, and rates terms and structures that match you equipment leasing needs . That then, is your home team advantage!

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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_finance_equipment_leasing.html

5 Tips For Selecting The Right Leasing Company For Your Equipment Finance Needs

Partnering is more often than not the right thing. Bad partnerships don't work and can adversely of course affect your business. That’s why it is so important to select the right firm to originate your equipment finance needs.

The right leasing company on a long term basis will ensure that you are investing properly in the assets you need to run your business for your customer base.

Let’s look at 5 key tips we can provide you to ensure you are putting the right financial strategy in place around asset acquisition. Successfully working and negotiating through these tips with the right leasing partner guarantees you business equipment lease financing success.

Its all about getting approved of course , and getting an approval quite frankly is the biggest decision your lessor has to make around the transaction - that approval can be significantly influenced by yourself - it is important to present both the positives around your firms financials, as well as the challenge you may have, or may be facing,

Chance of getting approved is significantly reduced if negative information about your firm or its financials arises after your submission. Factors that affect your approval are your time in business, your ability to have sourced financing in the past - i.e. other lessors, banks, etc. Other key areas of focus are trade references and the ability of the owners to demonstrate they run their personal lives in a fiscally responsible manner also. This is usually accomplished by the lessor drawing a credit bureau report. On transactions over 50,000.00$, as a general rule financial statements are required, and areas of focus will be your overall balance sheet health and the ability to generate positive cash flow to repay the lease .

Lets move on to rate, we are never under surprised with how much our clients focus solely on rate and their ability to drive down the lessors yield . In Canada leasing equipment is very competitive, and all we can say is that if you have presented your financials properly the market will ensure you have a competitive rate. Naturally you can spend all the time in the world securing a ' better deal ', but consider management time and total savings. A quick example: If you leased a 75k piece of production equipment and were quoted a rate of 10.25% and you spent a lot of time in sourcing another quote, re submitting your financials to a new firm, etc , and got a rate of 10.00% you would be saving twenty dollars a month. We'll let you decide the value of your time.

We have covered off credit approval and rates, Documentation are important also. You should be prepared to provide a proper invoice or quote to the lessor, as well as a certificate of insurance. The equipment lease and your acceptance of delivery are key to the lease commencement. Smaller transaction in Canada has been greatly simplified, so you should typically be provided with a one or two page lease agreement. Larger transactions are of course more complex.

The type of lease you choose and your analysis of the lease versus buy decision is also a key area of focus. Look at your cash flow Vis Vis payments you will make on a lease versus a loan basis. As a general rule leasing tends to be more expensive, but is easier to obtain and is less of a drain on your cash flow.

Two is the magic number. There are two types of leases you should inquire about, a full payout capital lease, as well as an operating lease where use of the asset is more important than owning the asset.

Your overall lease financing decision should be focused on a very simple question - namely:
- is the asset acquisition important to your business profitability and productivity. If new assets and proper financing position your business for competitiveness you have made the right financing decision.

We have covered off 5 key areas in the selection of a leasing company in the equipment finance area. If you find the information and the challenge overwhelming speak to a trusted, credible and experienced business financing advisor who will help you achieve lease financing that meets your goals.