Do Canadian Banks Provide Equipment Loans and Lease Financing?

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The leasing industry in Canada has historically been dominated by a number of different types of entities that provide equipment and lease financing to Canadian business.

The types of firms that are the key players in lease financing in Canada can be broken down into the following categories:

Life Insurance Companies

Credit Union leasing firms

Third party Independent Finance Companies - Canadian owner

Third party Independent Finance Companies - Subsidiaries of American firms

Captive Leasing Companies

Bank Leasing entities - Subsidiaries of divisions of Canadian banks

We would venture to say that probably 90% of Canadian business owners and financing managers think of ' Third Party Independent Finance Companies ' when they are looking to source lease financing for their equipment and capital expenditure needs.

Canadian chartered banks have moved in an out of the Canadian lease financing industry over the years. Currently only two the Big 6 Canadian banks have full fledged separate lease entities that actively market lease financing to their customers. In our opinion the reasons customers choose a bank lease financing entity are as follows;

Pricing

Existence of a Current Banking Relationship

Dollar size of transaction

Let's elaborate a bit on those points. Because banks are in the position of having the lowest cost of capital in Canada for business financing rates on bank leasing deals tend to be excellent. On average we would observe that rates on larger deals tend to be 3-4% over the Canadian prime rate. This is excellent pricing, as independent firms tend to price at 4 to 5 to 6% over the Canadian prime rate. That is on average of course because every customer's credit quality and situation is unique.

Business customers have bank lines and term loan arrangements with their bank. So it is a natural logical extension that they would discuss their needs with their banker, who may, or may not be able to offer a lease financing solution. We indicated that only two of Canada's chartered banks have full fledged lease entities. Some of the other banks have leasing division, which are much smaller and more specialized in size, and some banks choose to ' partner ' with third party independent finance firms that are both Canadian or U.S.owned.

We also referenced dollar size as a key factor in a customer choosing a banking lease arrangement. Banks in Canada have virtually unlimited capital, so they certainly can choose to finance any amount they choose.We say unlimited capital, that is a bit of an exaggeration but Canadian banks are currently viewed as some of the strongest in the world re their own credit ratings and capital ratios.

Banks are traditionally a bit slower to enter into the lease financing area, and banks use the function in some respects to develop new corporate banking relationships. In fact we have observed that in the 2009 and 2010 banking environment in Canada the bank lessor in fact attempt to develop a full corporate banking relationship with customers who approach them for lease financing needs.

Leasing is a good source of profit for the banks - the banks tend to make solid credit decisions on assets and corporate credit quality, and lease pricing provides some nice yields compare to some other parts of their business.

Some banks in Canada have, in the past, purchased some of the private independent Canadian lease companies that were getting large and successful or had a specialized market or geographical niche... Banks are often quick to sell portfolios and eliminate leasing divisions when they feel that market conditions suggest that.

In summary, the Canadian leasing landscape is made up of a number of market participants. Banks play a key role, but not a dominant role in the industry. Lease financing via a bank is often a relationship driven arrangement with the business customer's current incumbent bank. Banks who participate in lease equipment financing have excellent rates but higher credit and asset requirements. Business owners are cautioned to source the assistance of an experienced leasing advisor to determine which leasing arrangement (bank or non-bank) is best for their needs.



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 .


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















Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698


Article Source: http://EzineArticles.com/3748150

Equipment Finance Brings A Ton Of Creativity To Your Business : Here’s How Asset Leasing Services Work

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We’ve Just Made You A Triple Threat When It Comes To Acquiring New Or Used Assets For Your Business

OVERVIEW – Information on equipment finance in Canada. Here’s how leasing services for acquiring new and used assets can benefit the business owner/financial manager

Equipment finance in Canada makes your firm a ' triple threat ' to your competition. Why ? It’s pretty basic - You can effectively stretch your dollars, extend your budgets, and acquire equipment and facilities with the most minimum investment of funds. That is simply because you are matching investment of your funds with the useful economic life of the asset - what else could make more sense. Let's dig in.

When Canadian business owners and managers are aware of the benefits of equipment finance leasing and leasing services their ability to get rates, terms and structure approvals that makes sense increase dramatically.
Equipment financing in Canada is one of the easiest methods of financing business assets, bar none. By the say, that's new and used assets, technology, software, trucks and other vehicles, factory flow assets, etc . However, at the same time the complexity of the different types of leasing and who offers lease financing can be a true challenge that you might not want to dedicate all your time toward.

So what's important about this method of acquisition - You can obtain the best leasing services and rates by focusing in on what benefits matter to your firm from a priority basis - in many cases its simply the term and rate on the lease financing .

Depending on what type of asset you are financing lease terms vary from 2 to 7 years - at the end of the day it depends on the equipments useful economic life, combined with the type of lease you structured. In Canada that is either an equipment finance lease, designating your desire for ownership, or an operating lease, designating your firm's choice to use an asset, but not ultimately own it.

Leasing is often called a 'cash flow enhancer' - little or no money down, as well as your ability to craft monthly, quarterly, or semi annual payments with can either accelerate or decelerate as you require. That's true cash flow management!


Equipment lease financing is all about benefits and use, not real pride of ownership. In most situations today assets depreciate... you certainly can't look at your investment in computers and technology and make the case those assets are rising in value!

With today's volatile finance markets, inflation, and the somewhat erratic timing of the need for your asset acquisitions isn't it a safe bet to know that the decision process becomes much easier when leasing services provide you with an effective acquisition tool.

Equipment finance leasing allows you to generate the payments you need to make for the asset from income produced by the asset - payments are made from current revenue and the equipment and assets you finance are in effect a 'pay as it earns' scenario .
Today's costs are paid with tomorrow dollars since leasing involves payment for equipment as it is used. Naturally if you chose to buy the asset outright we can make the statement that you would be using today's dollars to hand tomorrow expenses, and we advise against that in conversations with clients.

Seek out and speak to a trusted, credible, and experienced Canadian business financing and lease advisor on how you can maximize the benefits of equipment lease financing to grow revenues and profits.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 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

Equipment Finance Leasing In Canada : Behind The Scenes In Lease Finance & Asset Loans

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Will That Be Cash , Or…. Equipment Leasing? Making the Case For Leasing Asset Finance

OVERVIEW – Information on equipment finance in Canada. Lease finance is a solid alternative to term loans and leasing solutions have never been more abundant for businesses financing new or used assets

Equipment finance & asset loan solutions in Canada more often than not boil down to one basic question - Will that be cash .. or lease finance?!



Why do thousands of firms of all size in Canada continue to come back to this great method of financing their equipment, capital expenditures, etc? One of those reasons is simply that they need the equipment for increased growth and profits, and to remain competitive in their industry. Let's dig in.


Acquiring new equipment has a cost attached to it of course. Those capital budgets, whether your firm is large or small, can be a huge drain on your cash flow and working capital needs - cash flow and working capital that you would prefer to have on a daily basis.


Every firm has different reasons for Leasing in Canada. It's kind of the opposite of the old adage of buying on credit as a preferred option to cash . That adage makes less sense when considering new or used equipt options for asset that are expensive, and depreciate!


Different industries have different levels of capital intensity , and increased capital needs often force owners to raise additional equity . Lease finance allows you to conserve cash.. and equity !


For businesses that are in a competitive environment the focus is always on staying up to date with plant equipment, computers, software , etc ( By the way, software can be leased also!)


Numerous issues arise out of asset finance needs - They include budgets, cash flow challenges, miscellaneous related costs, etc.
Let’s look at a quick example: Let’s say your company needs an 80,000.00 piece of equipment for the manufacturing process. What are the options of the Canadian business owner and financial manager?


They are fairly obvious, so which one is best? The options are:

- Pay cash and reduce the company ‘ cash on hand ‘ on the balance sheet

- Draw down on the company line of credit - most firms today need to make maximum use of their working capital and cash is almost never in abundance

- Speak to your Canadian chartered bank about equipment loans

- Lease the equipment


Bank negotiations around term loans and loan covenants and approval times don’t seem to appealing . Lease financing becomes a very obvious first choice. The faster the new equipment arrives and proper lease financing put in place the faster you can continue to grow sales!


Seek out and speak to a trusted, credible, and experienced lease financing advisor and discover how those financing options can enhance your business!



Stan Prokop - founder of 7 Park Avenue Financial –

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

Lease Financing In Canada : Equipment Finance & Asset Loans

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Does Business Asset Acquisition Seem Tougher Than Climbing Mt. Everest ? Problem Solved

Information on lease financing in Canada. Equipment finance is a strategic part of asset loans in Canada. Here's why and how it works!

Lease Financing – Canada continues to view this option as a major source of capital expenditure financing in Canada financing in Canada. More and more companies are gravitating to leasing as an effective financing option for their equipment needs.

Canadian business owners and financial managers need to be aware of the types of lease financing out in the marketplace, with respect to documentation, rate, term and structure, and of course, most importantly, approval .

The term for most leases in Canada, based on our firms experience tends to be between thee and five years. With respect to what asset type can be leased, probably the better questions is to ask ‘what can’t I lease ‘? That’s is because almost every type of asset can be lease financed. Leasing firms do like to focus on equipment and assets that are ‘revenue producing ‘in nature – i.e. those assets that will generate sales and profits for your firm – that’s because the lease is of course paid from the cash flow out of those profits and sales.

Many business owners do not, unfortunately, have a solid understanding of what types of leases they can enter into. Doing your basic homework in this area will save you potentially thousand of dollars over the term of the lease, based on estimated asset values and the type of lease you enter into. (There are two types – capital and operating).

When we ask business owners and financial managers why they lease more often that not the answer comes back relating to preservation of capital. In today’s difficult financing market Canadian forms want to preserve cash and credit lines for other basic business needs.

Other firms are very focus on how the optics of the lease will affect their balance sheet – many larger firms focus solely on operating leases, where the asset remains off their balance sheet as debt, and the payments are reflected as an operating expense. When debt to equity ratios and cash flow coverage ratios are important to your firm, your bank, or your shareholders then leasing via an operating lease becomes a very effective financing tool.

Leasing tends to be ‘fixed rate’ financing. Given today’s relatively low interest rate environment it of course makes a fair bit of sense to lock into a good low rate for the next three to five years.

There isn’t a day goes by when we don’t hear of in the radio or the financial press concerns about inflation. When costs go up in an inflationary environment the business owner takes solace that his lease payments are fixed and at a respectable rate.

We spoke previously of capital conservation – more often than not leasing is 100% financing – on occasion a customer may be required to provide a first, or first and last payment, and sometimes a down payment, but in general business view leasing as 100% financing. That’s a good thing relative to cash flow management.

When we talk to business owners about leasing we frequently use the term ‘options ‘. That is because leasing lets you have a final vote in your capital expenditure financing. Properly structured leases allow you to return equipment, buy it out at end of lease, or extend the term of your lease if you feel the equipment will be used for another specific period of time. Many lessors will even allow you to go ‘month to month ‘.

Naturally in today’s competitive environment it makes sense to stay ahead of technology whether that is computers or plant equipment or rolling stock. Leasing allows owners to use the asset and ensure that you have access to newer assets if your firm needs them – upgrades are very common in lease financing in Canada.

We spoke of ‘approval ‘previously .Since most lease financing is done outside of the banks in Canada independent finance companies focused on lease financing work hard to generate an approval for your asset financing. Typically a lease finance approval can be obtained in a week or so as long as you have the required information, which is generally an asset description of quote, and the basic financial information on your company, i.e. your financial statements.

Investigate the benefits of leasing by talking to an experienced and credible advisor who can ensure your firm is maximizing those lease finance benefits!


Stan Prokop - founder of 7 Park Avenue Financial –
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

Equipment Finance Leasing In Canada : Exploring The Real Benefits of Lease Financing

Does Lease Financing In Canada Really Work ? You Decide

OVERVIEW – Information on equipment finance solutions in Canada . Lease financing is touted as a popular way to acquire assets . Here’s how and why leasing an asset works.

Equipment Finance for asset acquisition in Canada is one of the most touted business finance strategies. Leasing assets via lease financing has numerous benefits and considerations that many business owners/financial managers never really truly consider. Let's dig in.

The ability to both run and grow a business often depends on the assets you need to acquire, or upgrade. Certain specific considerations must be made when entering into proper lease financing strategies - it's at that time that the owner/manager can truly achieve business economics that makes sense and provide a competitive advantage.

Almost every business in Canada, bit or small, new or established, uses assets to generate sales and profits. The decision points that revolve around the asset acquisition strategies you employ typically revolve around how your balance sheet looks, as well as your overall cash flow situation and the ability to get approved given you have other forms of operating or term debt .

Few businesses exist that don't utilize equipment finance - whether it comes down to corporate jets, shop floor equipment, lab equipt, technology... well you get the drift!

It's actually fairly easy to come up with at least 8 ' solid ' reasons to consider leasing your assets. While it would be rare for all these benefits to pertain to your firm we're quite sure many do. They include:

The ability to acquire assets with little or no down payment

Your firms ability to conserve valuable cash flow

The ability to manage the tech risk that comes with certain assets that evolve or need constant upgrading - (think computers/software, etc)

Utilizing lease finance as an inflation hedge

The ability to realize the economic benefits of assets without a 100% outlay in cash re having to purchase an asset

Managing the tech curve given constantly changing times

Balance sheet and income statement considerations

Using operating leases as a way to manage changes in tech in your assets


Many business owners or managers might feel their company or organization isn’t a user of equipment finance strategies. The reality? Whether you're a start up, Financial Post 100 firm, or a govt organization or non profit it's safe to say leasing assets is used in your sector.

What does the owner/manager need to do to asses a proper asset finance strategy? Typical considerations include:

Knowing how lease finance fits into your overall financial plan

Understanding how you will use the asset and for what period of time (leases typically are a minimum of 5 and a maximum of 7 years in term length)

Understanding whether you want to either own, or use an asset - Respectively capital lease and operating lease options need to be considered

If you're looking to truly succeed in asset acquisition a proper equipment finance strategy will help you reach that goal: seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in lease financing strategies that make sense.


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 . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCE EXPERTISE



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

Equipment Finance In Canada : Remain In Control

A 2-FER! You May Have Had This Wrong On Equipment Finance Until Now : Plus More Benefits You Can Capitalize On

OVERVIEW – Information on equipment finance in Canada . Maximize your use of leasing assets with this information , including misinformation clarified

Equipment financing in Canada , similar to other industries, clearly has its own ' lingo ‘. Knowing some of those terms maximizes your ability to increases benefits of equipt leasing through selection and negotiation of leases that make sense for your firm. It's your version of a finance gravy train!

Let's dig in.

Most people agree the economy is firing on all, (if not most!) cylinders. Lower rates and the needs to acquire or upgrade assets almost always make leasing the # 1 choice in asset financing . That investment can be a huge cash flow drain on your financials and asset financing address that cash outflow. Top experts tell us that 7 out of 10 businesses will have some type of lease financing need in the coming year.

The ability of owners to expand their businesses is key to remaining competitive - Certain asset categories are always in demand relative to financing needs - they include office technologies, plant machinery, telecom equipment and transportation ' rolling stock ‘. The good news is that really almost any asset your business needs is financeable.

One of the ways that many firms in Canada utilize leasing is simply as an alternative source of capital - It's all about not putting all your ' credit eggs' in one basket. While many Canadian banks do offer asset leasing it should be clear to owners/managers that any borrowing facility within a bank will be part of your total credit line with the bank. In fact the majority of borrowers prefer to use our chartered banks for their operating facilities and other misc services.

Where can the busines owner ' trip up ' on when it comes to improperly assessing or understanding your finance options. By the way, we're the first to acknowledge that loans, bridge loans, sale leasebacks, and other forms of venture debt can also be used to acquire assets.

Focusing in on the type of lease you need will save your firm a lot of time and potential financial loss. The bottom line is that you have two choices - a lease to own, or a lease to use option. In industry terms they are known as ‘capital ‘and ' operating’ leases respectively. Understanding issues such as advance payments, how lease companies make money (cash flow timing, interest rate, residual value of asset) and accounting issues around acquiring assets are all important.

If you want to make sure you’re both exploring and maximizing asset finance needs properly 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 equipment leasing 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 BUSINESS 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 '

Lease Vs Buy Declassified : Addressing Equipment Finance Financing Considerations In Canada

Lease Vs. Buy Decisions Don’t Have To Be A ' Hair Raising' Question or Challenge

OVERVIEW – Information on how business owners and managers can address the lease versus buy question when addressing equipment finance and general financing needs for asset acquisition

Equipment finance poses an interesting and challenging question for Canadian business owners and financial managers. That question? Should we lease or buy the asset in question. Or should we care ? ( Answer – you should ) . Whether it’s a one time asset acquisition or if you company is somewhat ' asset intensive ' there are numerous ' repercussions’ (both positive and negative) around addressing that question properly .Let's dig in.

It's should be no secret that the lease industry touts the many advantages of equipment financing as beneficial to your business. Those benefits are real, but even more real is the fact that every company is somewhat different relative to its own needs and any peculiarities surrounding their business or industry.

What then are some of the key factors around your choice to finance, or buy an asset or technology? (Yes Virginia, your tech needs can be financed!)
And by the way, we're not trying to complicate the decision, but other alternatives to leasing do exist - including term loans, sale leasebacks of owned assets, and temporary bridge loans.

Back to the ' lease vs. buy ' decision though at the heart of that decision almost always is some cash flow analysis.

It's really the ' timing' of monthly payments and cash outflow that brings many owners to the decision to opt in favor of leasing. Some of those other issues that should be taken into consideration include tax issues that might well be discussed with your accountant.

In our own experience clients tend to consider balance sheet and, tax, depreciation and other issues in favor of... you guessed it... interest rate! If only we had a dollar for every time someone asked us ' what’s my rate ‘......

In some ways, primarily because the industry is very competitive and overall credit quality drives rate it’s really the least important issue in lease finance!

What are some key data points in managing your overall decision to purchase or lease an asset? They will include:

How the equipment will be used and maintained?

Is it advantageous to my business to include other miscellaneous costs tied to the acquisition in the financing - delivery, installation, service, etc?

Do I have ' wiggle room ' in getting out of a lease early (Answer - basically you do not!)

How can upgrades or add ons to the asset/assets in question be handled?

If you're looking for expert assistance in the lease versus buy conundrum seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in ‘ declassifying ‘ data into asset acquisition financing that makes sense .



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