Best Canadian Equipment Lease Interest Rates in Commercial Leasing?

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Commercial Equipment Lease & Loan Rates - Explained !

Looking for the best deal in town on equipment leasing rates in commercial leasing and asset acquisition ? Our clients ' interest ‘in getting those best rates is always somewhat amusing to us. Why? Simply because the ability to understand how equipment leasing and equipment loans are priced and how rates are derived is not always clear to Canadian business owners and financial managers.

Lets examine some of the key factors that drive your final pricing when dealing with equipment leasing companies and how you can have a very direct effect on the assets you finance and the price you pay - as always it seems to always come down to that ' monthly payment ' - so lets demystify that process .

First of all many business owners never take the time to look at their alternatives when it comes to equipment leasing of their fixed assets. Two key issues come into play here, one is simply they type of lease they enter into (there are two types - do you know which is which) and the second is understanding what the 5 (yes five!) components are of a very simple lease calculation.
Back to point # 1: When you are making that lease versus buy decision make sure you evaluate your alternatives.

The key alternative to lease finance is one in which you might consider a bank term loan, or alternatively purchasing the asset out of your operating cash flow based on existing credit lines that are in place. But quite frankly the reason you are reading this in the first place is that you have already decided that commercial equipment lease financing is in fact the best method of asset acquisition - at this point you just want a good deal . So we're assuming you have done your lease vs. buy analysis and are focused on our core subject today - a great lease rate and structure!

Getting back to those 5 key elements in lease financing pricing - what are they? They are simply as follows - the term of your lease, the interest rate being charged by the lessor, the value of your transaction, the future value of the lease, ( i.e. what happens at the last payment ) and out of that falls nicely # 5 - your monthly payment .

Many business owners, and are we say, financial managers don’t use a financial calculator. If you have access to that type of calculator you can simply input either your data, or assumptions on any of those 4 critical data points and out will pop the last piece of data that completes the commercial leasing pricing and structure.

Quick example - lets say you are leasing an asset for $100,000 - you want a 5 year lease, you think your lease interest rate should be about 8%, and you want to own the equipment at the end of the lease. Congratulations, you have just quantified 4 out of the 5 data points - Enter those into your lease calculator and you will see that the monthly payment is 2014$.

But wait, let’s say you can only afford 1500$ a month and you have done your analysis on the payback of the asset. Enter 1500$ into your lease calculator and it will show you that to achieve that lease payment the term must be 88 monthly, not 60 months .


Getting the point ? Its a simple one - understand that if you know the key elements of your lease inputs you can manipulate that info to achieve either the best rate, the best monthly payment, the optimal term of the lease, etc .

The type of analysis we have just done relates to a capital lease transaction - remember we spoke of two types of leases. If you want an operating lease (i.e. use, but not ownership of the asset) our data elements are just the same but you'll find that your overall interest rate on the amount financed will be much lower, because the lessor and you have opted to have the lease company own the asset.

Do we even have to mention that the key driver in the actual interest rate charged is very simply the overall credit quality of your firm when it comes to borrowing.

So what have we covered - simply that you have the ability to manipulate key lease elements to drive a final pricing and structure that works best for your firm. Is there a quicker way to ensure you have all the points covered - there is! Speak to a trusted, credible and experienced Canadian lease financing advisor with a track record of business financing success who can ensure you the final deal is the best deal in commercial equipment leasing in Canada.










7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !





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 .

' 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

Canadian Equipment Leasing - How To Get The Best Lease Deal!

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Strategies for Successful Equipment Financing

Information on Canadian equipment leasing finance . Achieving the best finance solution for an equipment loan requires knowledge of these key aspects of lease financing

As a Canadian business owner and financial manger you need a certain amount of skill and knowledge to successfully source and negotiate a Canadian equipment leasing strategy. Equipment financing in Canada can be simple or complicated – the business decisions you make around the financing and acquisition of your asset involves a number of factors which have to do with credit quality of your firm, the way in which you will account for the lease, as well as any business or legal considerations around the transaction.


From the viewpoint of your lessor we can probably safely say they are most interested in simply getting paid back, so the ability to present your firm as a reasonable credit risk will allow you to get the asset and amount you want approved, and, as what seems most important to many of our clients, you will get what we would like to call a ‘competitive rate and structure. You also want to know if you are making the right financing decision as opposed to considering an outright purchase or some type of term loan for your asset financing.

So at the end of the day you want to know what type of lease and benefits are available to your firm, and who is the best ‘lessor partner’ for this particular transaction.


We meet with many clients who spend countless hours, if not longer sometimes in talking to a large number of lease companies on any given transaction. What they don’t understand ( other than wasting their time ) is that lease companies in Canada are organized by asset and credit quality, and many lease firms are funded in different manners, and in some cases offer only one type of lease , which is not necessarily the lease financing you might need for your asset finance decision.

So how do you wade through all this clutter and noise? It might be proper to consider working with an expert who knows the Canadian lease industry, and is a trusted, credible and experienced advisor to your firm in this area.
When we meet with or get a call from clients who have been out in the market ‘ shopping ‘ for a lease it becomes very clear that they appear very un organized and have spent an inordinate amount of time .

Also, they are looking for ‘ all ‘ the ‘ benefits’ of lease financing in Canada, when in reality only a certain number , or even a limited number of those benefits might apply to their transaction . Countless firms recount stories of having paid too much for a lease or having focused on an option that ultimately had limited benefit to their firm.

Again, understand the market, or work with someone that does.
Your ultimate goal in a lease financing strategy in Canada is to ensure you have, at the start, outlined what makes sense for your firm regarding the lease structure and the appropriate partner. Firm you need to work with.


When you are soliciting lease pricing you should do that selectively with firms who are interested in your overall credit quality, asset type, and dollar size of your transaction. We tell clients to get a ‘market sense ‘of the type of lease financing that is available as the industry has the ability to use jargon that can be considered confusing to say the least!


One strategy you can use is to outline a basic lease financing request and solicit a number of bids – by clearly showing who you firm is, the asset you wish to finance, and the dollar value of the transaction, and the type of lease you require (there are two types) you can quickly eliminate a lot of wheat from the chaff!


In summary, understand what key benefits you want to achieve from a Canadian Equipment Leasing transaction get a sense of who can deliver on those options, and ensure you have a level playing field for lease firms you might want to work with.





7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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

Take Back Productivity With Equipment Financing Leasing in Canada

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Why Equipment Financing Is More Popular Than Ever



Information on the benefits of equipment financing and leasing new and used assets for growing a business . Exploring the cash flow benefits to a successful lease finance strategy

Yours customers have heard the news - you have invested in new assets to better serve their needs and demonstrate your firms long term commitment to their business. That’s a clear, however intangible, benefit of equipment financing leasing in Canada.

The ability to increase production or streamline your business processes is often served by asset acquisition - acquiring those assets via a lease financing option is clearly the smart thing to do .

Competition is heating up everywhere, locally, nationally, and of course globally. That’s why your ability to invest in new assets such as production equipment, computer technology, business equipment, etc will put you at the top of the pile when it comes to today’s highly competitive environment.

Investing is always a long term strategy, so it is necessary to finance long term assets with a finance strategy such as equipment financing leasing - you are matching the long term benefits you will achieve through the assets with a same long term financing strategy. Your accountant calls that ' matching means to your needs ' - Intuitively to you as a business owner it’s simply cash flow 101!

It clearly does not make sense to any Canadian business owner or financial manager to pay cash and deplete cash flow and working capital resources and then to only receive the benefits of that cash outlay over a longer period of time.

Many of the production assets that we see clients acquire come from either the U.S, Europe, and in some cases even Asia. The 2010 strong Canadian dollar lends itself to strong buying power based on the currency and the willingness of the foreign suppliers to make sales.

When we thing of shop floor and production equipment we think of long term assets that will have a very useful economic life - in many cases they will even hold a residual value many years ago . But then... theres computer and technology. Those assets cost a lot, depreciate quickly, and as they become more and more productive that is offset by the need to constantly upgrade - think servers, pc's, laptops. Etc.

Once again, equipment financing leasing to the rescue! Your ability to upgrade, replace, or extend current leasing of technologies is enhanced by a lease financing option. And think of those cash flow advantages. We pity the poor Chief Information Officer at medium sized and larger firms that constantly must wrestle with capital expenditures in such large and constant amounts.

We all here about ' crunching the numbers ' - in leasing, with the aid of a financial calculator you can very quickly identify budgeted amounts and cash outflows. There are only 5 simple parts of an equipment lease calculation- the term of the lease, the interest rate, the value of the equipment, the end purchase option, and of course the payment . Knowing any 4 of those allows you to quickly calculate the final remaining piece of the puzzle in your budgeting scenarios.

One of the greatest financiers of all time, J P Getty is often quoted as saying - ' if it appreciates buy it, if it depreciates, lease it '. That’s the strategy you probably should adopt on every asset acquisition, and utilizing the variety of equipment financing leasing options is the common way to approach that lease versus buy decision.

Speak to a trusted, credible and experienced Canadian business financing advisor that will help you achieve and overcome your obstacles to competitive innovation.








7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

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 .

' 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

Canadian Business Loan Financing : Pain or Pleasure ? Mastering Finance Success With Equipment Lease Companies

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Equipment Leasing Success Strategies

Information on equipment lease companies in Canada and how to maximize asset acquisition business financing success via leasing and equipment loan strategies that work to your competitive advantage

You've been there before. Does this sound familiar? You need to acquire costly assets for your company and don't want to utilize your cash reserves of business operating credit to acquire asset financing.

Yes of course you could get a traditional term loan via your chartered bank, but if you are a small or medium sized business and unable to access term financing what are your available options? The answer is a business financing lease loan via Canadian equipment lease companies.

Why are some firms successful in both obtaining approval for their leased asset needs, and at the same time seemingly able to get the payments they want to sustain their cash flow and working capital.

Let's examine some key info, strategies, tips, and types of solutions available to Canadian business owners and financial managers.

You will find first of all, and this is a key driver in business financing and equipment leasing... that approval for your transaction is much easier to obtian than other types of asset finance. Most business owners don’t understand the very simple process involved in acquiring asset financing via equipment lease companies in Canada. To prove our point it’s simply a fact that in North America Billions, yes billions of dollars of assets are lease financed.

A typical approval process is simply a standard credit application, appropriate financial disclosure, and a copy of a quote or invoice from your chosen vendor. It's as simple as that. Naturally the larger the transaction size the more info you might have to provide re financial statements, etc.

Many businesses aren’t aware that a huge part of the equipment lease industry in Canada utilizes whats known as an ' app only ' approval process, with you as a business owner providing only a standard application, with most approvals done via automatic scoring, via the lessors ' point system ' criteria around your years in business , payment record to suppliers , etc.

You have truly mastered equipment lease business financing when you fully comprehend the fact that almost any asset, even some intangibles (i.e. software) can be financed. Its
when you make your lease and loan finance decision a part of your overall long term financing strategy that you suddenly realize that every asset that is both costly and depreciates probably makes sense in your overall lease financing strategy .

Successful lease finance lets you keep and grow your cash reserves, allowing you to survive against that constant battle with your competitors. One of the smartest things you can do is to develop relationships with equipment lease companies that will over a long term basis provide you with ongoing lease lines of credit for all your asset needs. The industry itself refers to this strategy as an ' evergreen ' scenario, one in which your firm is constantly refreshing its assets to generate sales and profits.

How many times have you felt that sales and profits are growing, you seem to be winning the competitive battle, but cash flow is a challenge due the to the heavy investment you have in assets such as receivables and inventory . That’s when business financing via a n equipment lease makes your overall success complete, as you retain that much needed operating cash flow for growth and sales, letting lease and loan finance hand the asset acquisition part of your growth plan .

Let's get one thing straight. The reason leasing companies in Canada exist is simply their own mandate to generate lease transactions! Criteria for approval is significantly different than a more traditional banking approach, with heavy emphasis placed on the asset as collateral, as well as its ability to generate profits and sales for your company . Many business owners are surprised to hear that even start ups or very young firms can generate significant lease financing approvals for assets they need to grow the business.

We've focused on issue such as approval, types of assets, and alternatives to traditional financing in looking at your relationship with equipment lease companies. But don’t forget also the other major benefits of this asset acquisition strategy, some of which may be more important than others to your firm. They include tax and balance sheet advantages, improving your ability to manage obsolescence in assets.

We can guarantee you that you'll only master and be successful in lease financing when you understand the make up of the Canadian equipment lease landscape. Knowing who to talk to and whats available will put you significant ahead of the pack. Speak to a trusted, credible and experience Canadian business financing advisor for assistance in dealing with equipment leasing companies to your advantage.

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

Click here for 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 .

' 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

Technology Leasing Companies - Canada – Inside Info On Computer & Software Finance

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Leasing Technology Assets In Canada

Information on the benefits and pitfalls of technology leasing in Canada. Which companies offer financing of computer, software, telecom and other assets . What leases work best in hi tech?

If cash Flow and capital were no object the acquiring of technology assets wouldn’t be as much of a challenge as one would think. Canadian business owners and financial managers like to be on ' the inside ' when it comes to knowledge and competitive information - it’s just natural.

So we want you to be on the ' inside ' when it comes to technology leasing and financing . What companies should you be working with when it comes to the financing of telecom, computer and software assets. We want you to know some of the tricks (can we call them that) that the big boys use.


Technology leasing has some different economics when it comes to financing. Some very powerful ................ are in play. Your financial commitment to acquiring these types of assets is generally large relative to your overall capital budget; these assets tend to depreciate rapidly, and prices seem to be going down all the time... so when should you purchase? Boy, those are some interesting dynamics!


At the same time the benefits you receive from the use of tech assets are huge, not the least of which is your competitive position in your industry. So let's talk about overcoming some of those tech challenges


Many business owners are not aware that you can finance ' software ', either on a stand alone basis, or in conjunction with a hardware solution. But there is a key differentiator here, which is that it is much easier to lease application software as opposed to the software you have developed. But larger, creditworthy companies can in fact get financing for software development on a project by project basis.


One of the interesting ways that the lessor protects himself in these situations is to ensure they have access to and rights to the source code you are developing. How is that handled, usually via an escrow agent who maintains updated access to the source code, with the provision that should the lease default the lessor has access and rights to that source code .



Term. It's all about ' term ' when it comes to technology leasing of computer and software. Leasing companies in general prefer a 3 year term for tech assets. Does that make sense? We think it does... if only for the fact that the dramatic changes in hardware and applications render anything older than three years as somwhat obsolete when it comes to technological change. So the bottom line is to be prepared to defend your need for a 4 or 5 year lease term when it comes to a depreciating asset such as tech.


It should be no secret to Canadian business that technology leasing is secured by the lessor in the same manner as any other assets, a PPSA ( Personal Property Security ACT) registration is made against those leased assets; registering the lessor collateral in the hardware and software described in your equipment list and configuration .


If there is one ultra-important thing you should consider when looking at companies that will assist you in technology leasing of computer, software, and telecom assets it’s probably the type of lease that you enter into. Broadly speaking in Canada



You need to only focus on two types of leases - capital and operating. Is there an easy way to immediately pick which one is the most applicable to your need? It's not as challenging as you think, think simply in terms of the lease to own (that’s capital) and ' lease to use ' (that’s operating). Those two leases, capital and operating, dominate the Canadian marketplace.


Those big boys we referred to, major corporations tend to use operating leases for some sophisticated reasons such as balance sheet ratios, cash flow coverage covenants, return on equity goals, etc. If you are a small or medium-sized business these same operating leases simply could provide you with two things, a lower monthly payment, and some great flexibility at the end of the lease term.


In summary, there are some major differences in dealing with technology leasing as opposed to other types of assets that might be in your budget. Many of the ' tricks' those larger corporations use are available to the small and medium-size business owner. Understanding how these assets can be financed is important for any sized business. For extra expert help consider talking to a trusted, credible and experienced Canadian business financing and leasing advisor who can assist you in ensuring maximum benefits and flexibility.

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

Click here for 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 .

' 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.

How To Master Equipment & Asset Acquistions For Your Business

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Equipment / New Asset Needs ? Cash Flow Pressures? Welcome To Plan B !

Information on equipment leasing and financing in Canada . Business leasing allows Canadian business owners to adopt solid financial strategies to maximize asset acquisition and reduce cost and conserve cash flow

Its official - your company is on the road to recovery in the Canadian business landscape. So how can you use equipment leasing and financing as a new economy strategy? Let’s share some tools and strategies for Canadian business owners and managers, allowing you to maximize business leasing dollar benefits.

The economic havoc that wrought business financing tension in 2008-2009 appears behind us. However, the cost of, and access to credit remain two key issues in Canadian business financing.

Equipment leasing allows you plan carefully for growth. Think of all the uncertainties you have in either replacing or purchasing a new asset. Those key uncertainties are things such as cost of the asset, the obsolescence issue, concerns around asset acquisition negatively impacting your working capital, as well as competitive pressure.

Any of those issues might seem insurmountable if you didn’t have a business leasing alternative for asset acquisition.

Many companies in Canada have not thoroughly investigated the use of operating leases as a business leasing and financing strategy. This strategy alone can give you a triple weapon to beat the cost of assets, the cost of financing, and, as we noted, that pesky ' obsolescence ' issue.

So how does the owner of CFO implement such a strategy? We're the first to admit it works best on technology related assets, i.e. computers, telecom, etc. Let your Canadian equipment leasing company take the risk by your careful creation of an operating lease. This transaction is very powerful... why? .. simply because your payments are lower, your monthly rentals are fixed , the overall cost to finance a depreciating asset is less, and last, but not lease, it you who make the call at the end of the lease term on owning, returning, or extending your transaction !

It should be obvious to any business owner or CFO that you can’t break through and business financing barrier if you don’t know who you are dealing with. There are tens, hundreds actually of business leasing firms in Canada.

Want to waste a lot of your valuable time? If you do then don’t investigate the type and size and credit criteria of the lease firm you are dealing with. That’s not our recommendation however! What you want to do is ensure your asset and your financial situation is matched with a firm that perfectly suits your equipment leasing needs. So that can be a small ticket item, a complex technology strategy, or a used piece of heavy construction equipment. Bottom line; know you lessor re asset type, credit criteria, and flexibility re structuring.

Hers a simple breakthrough strategy - simply make a list of whats important to you in your leasing financing decision - key items might be capital conservation, payment flexibility, enhanced structuring , a la off balance sheet, etc . Any one of those items, properly completed, can save you thousands of dollars on a transaction.

Business leasing is back in demand! Your competitors are for sure utilizing business leasing. Your company is unique. So whether your reasons to finance are technological, financial, convenience related, or hard core economic - (i.e. diversifying your borrowing) don't dismiss your ability to achieve breakthrough financing via equipment leasing in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for some of the best business financing advice you will ever receive on business leasing.






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

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 .

' 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

Give Me Ten Reasons Why My Firm Should Consider Lease Financing!

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Equipment lease financing is an alternative choice for firms who wish to acquire capital equipment and other assets. Typically the other two methods to acquire such assets are either a cash purchase, or a loan of some sorts, usually via a bank. The lease financing solution can frequently offer significant cost savings to the borrower, know as the 'lessee'.

Equipment lease financing is an alternative choice for firms who wish to acquire capital equipment and other assets. Typically the other two methods to acquire such assets are either a cash purchase, or a loan of some sorts, usually via a bank.

The lease financing solution can frequently offer significant cost savings to the borrower, know as the 'lessee'. However, this is not just an expense strategy; there are numerous other reasons why this type of financing should be considered.

As an example, a lease transaction that requires only a low down payment might assist the company who has a lot of working capital tied up in receivables and inventory. Receivables and inventory typically represent the largest components of a company's working capital.

If a customer chooses to purchase the equipment instead they are in effect giving up certain key rights they have in a lease - for example, upgrading equipment, early cancellations, etc.

Normally when a customer considers either a lease or buy decision the business owner or financial manager would prefer to focus on ' hard dollar ' savings; while this is optimal of course many of the benefits of leasing in effect are intangible and should still be considered as part of the acquisition strategy. Let's look at some of those intangible benefits.

1. Credit Power - many lease firms have less restrictive credit qualifications than banks or other financial institutions. This is more so the case when the lessor is actually the manufacturer of the equipment!

2. Final Disposition - the company avoids having to dispose of the assets at the end of the term of the lease

3. Timing is everything - Lease approvals tend to be faster to obtain than a loan or bank type financing

4. Payment alternatives - many lessor allow skipped payments, seasonal payments and structured payments - example: A snow plough operator might request lower payments in summer when business is slow, etc

5. Bank lines untouched - in the current economic and banking environment businesses find it more difficult to access, or even maintain their bank lines - leasing leaves those lines untouched

6. Budget issues - Leasing eliminates one the of largest obstacles to a customers ability to acquire equipment - the cost of the machine. Many firms have budget issues and the lease strategy allows them to in some ways circumvent that strategy and pay the lease through an operating budget, not a capex budget

7. When a customer is concerned about warranties or maintenance of the equipment he has significant leverage, via payments, to influence a high level of service from the manufacturer or lessor.

8. Use of asset - if a customer over uses an asset he does not necessarily have to reimburse the lessor

9. Down payment - Leasing requires only a small down payment

10. Balance Sheet optics - Properly structured leases can have the effect of enhancing the customer's balance sheet as the liability does not appear on the balance sheet - Customers want to use equipment to generate profits, they don't necessarily want to own it.

In summary, yes the business owner and manager would prefer a hard dollar evaluation of any asset acquisition, but we have shown that there are many intangibles to consider also, many of which could benefit the firm in a number of ways and have a significant impact on their business growth, financing, and profit.



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

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 .

' 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


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