Critical Factors to Consider when Lease Financing in Canada

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Equipment Leasing Canada & Why Equipment Lease Rates aren’t Important!

Information on equipment leasing and lease rates in Canada. Factors other than interest rates are also critical when financing equipment and technology to run and grow your business

How can equipment lease rates in Canada not be the most important part of your equipment leasing in Canada acquisition strategy? That’s what clients want to know when we advise them the while an overall competitive leasing rate is important they must not miss the several other factors that play a huge part in making the proper lease financing decision.

Leasing in Canada has of course been around for many decades, we venture to say at least back to the 19 50’s, if not older than that. As a Canadian business owner and financial manager you recognize that it is clearly one of the most viable methods of acquiring assets for profit and sales growth – Profit through use is one of the buzzwords of equipment leasing in Canada.

The key thing you quickly realize about lease financing in Canada is that it encompasses all types of assets - from heavy industrial equipment, used equipment of all types, and of course technology such as computers and telecom equipment, etc . The reality is, and this is a surprise to many, that even ‘soft’ items can be financed such as computer software, or installation costs and warranties for shop equipment, etc.

So fine, we recognize that leasing is important, and we recognize it’s available to us as a financing option. So why isn’t rate the most important factor, isn’t it all about cost and payments?

We don’t think so, because the reality is that if you don’t properly address or thing about the other key factors that are involved in the whole ‘should I lease or should I buy?” decision then the last thing you should be worrying about is your rate. Let’s cover off one key point about rate before we move on to some of the other factors you must consider – it is as follows - Business is competitive in Canada – There are a number of lease financing sources.

Customers doesn’t believe us but we actually spend a lot of time talking to them and advising them that they get to pick their own rate! How is that possible they ask? It is simply based on the statement that your overall credit quality determines your rate within a very close band of competitive offerings of lease financing in Canada. So if you can properly demonstrate your own overall credit quality re ability to pay, historical cash flows, future cash flow ability, overall business prospects, etc then categorically will be in essence determine your own interest rate on the transaction. End of story on rate!

So, those critical other factors you need to consider - they are as follows – you should discuss with your accountant or a trusted, credible, and experience lease financing specialize what financial statement implications your lease will have – You want to determine if you choose a lease for ownership of the asset, or a lease for use of the asset, the latter being called technically in the industry an ‘operating lease ‘.

Are there any risk to leasing equipment .There might be. This is where you want to talk to your accountant about what the tax advantages or disadvantages are of the transaction. You mighty want to ask him to run what is known as a lease vs. buy analysis to determine, with your input, what is the best way to acquire the asset in questions.

Despite what leasing companies might tell you in their literature or on their website you might find that a true analysis of the transaction shows that leasing is not necessarily the lease expensive way to acquire assets. If you and the leasing company borrow at the same rate (it could happen – leasing companies borrow also to fund your deal) then clearly lease financing might not be the best option.

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

The Inside Scoop On Canadian Equipment Leasing & Asset Financing

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Three ' Must Know ' Things About Equipment Leasing

Information on equipment financing solutions for Canadian business . Canadian leasing solutions can solve all your asset financing needs if you know how it works best

Financing for equipment is sometimes a challenge for Canadian business owners and financial managers. What if you had a solid understanding of 3 key elements of Canadian equipment leasing and financing. Let’s explore some key information around three critical elements of lease financing –



1. What can be financed?

2. What are the type of leases and rates available to my firm?

3. What is the best way to obtain a prompt approval at the best rate, terms and structures for my business asset acquisition?



So what assets can be financed in Canada? The reality of that answer is that almost every business asset can be financed, and moreover, two other key points need to be made. In many cases even intangible assets can be financed – a solid example is software for your business, or even the additional add on requirements that come with many asset acquisitions – these might include installation, warranties, maintenance, shipping/delivery, etc. And, furthermore asset financing in Canada definitely includes the financing of used equipment, which is a major part of the Canadian equipment financing industry. Millions of dollars of used equipment, purchased here or in the U.S. or other international locations are financed annually. We add two critical cautionary items of note here – in certain cases and appraisal or asset valuation or inspection might be required if the asset is new , and in many cases a down payment might be required on a used piece of equipment . These two points would still clearly not negate the major benefits of financing a piece of used equipment. Why used? Simply because many assets in many industries still have a very useful economic life after a typical usage of 3-5 years, for example thing production equipment, etc. In many instances, especially with the use of the internet and auction sites pricing on used equipment might be exceptionally favorable.

One other solid tip is to get your lease financing approved in advanced, as this might allow you to negotiate a better price with the vendor given you are pre approved and the vendor knows they will be paid directly from the leasing company.

Let’s move on to our second point, which is simply that there are some critical technical aspects to lease financing that are very important for business owners to be aware of . First of all you should ensure that you understand there are two types of lease financing available – to keep it simply we will simply call them, as the industry does:

Capital leases

Operating Leases

Which one is best for your firm? We always dislike saying to our clients ‘it depends ‘but the reality is that the choice of lease type should be driven by your final motivation with the asset. By that we simply mean that you need to determine, in advance! , if you intend to own the asset at the end of the lease, or if you simply want to use and return it after an agreed upon amount of time, usually 2- 5 years, although shorter and longer terms might apply (that’s the flexibility of lease financing).

Choosing the type of lease you pick will significantly impact how the lease is carried on your books, and also it is a critical factor in driving pricing. Operating leases will always be priced with a lower monthly payment as the asset is returned to the lessor at the end of the lease. Clients ask us ‘what if we later determine the asset still has a useful economic life and we wish to keep it? Again, here is where the flexibility of lease financing comes in, because you are allowed in an operating lease to pick one of three options at end of term – you can return, purchase, or upgrade. Actually there’s a fourth option, which is simply to agree to extend the lease for a pre agreed upon amount of time.

Let’s move on to our final point, which is simply – You have made the decision to acquire an asset through lease financing. How do you go about that in Canada? We advised clients to work with a credible, experienced, and trusted lease financing advisor - even basic assistance around the final rate, term, and structure could save you many thousands of dollars in payments. Or at the same time, negotiating on your behalf any critical areas such as down payment, limited personal guarantees, or end of lease options can all be the make or break point in Canadian lease financing success. Additionally, the lease financing industry in Canada is very fragmented and consists of captive firms tied to manufacturers, independent Canadian and U.S. firms, and very specialized firms that only do or finance certain things.

In summary , arm yourself with some critical knowledge of lease financing and you will be rewarded with the knowledge that you have chosen the best financing method for the acquisition of new and used equipment and business assets 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

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

Leasing Construction Equipment : New & Used !

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Wouldn't It Be A Good Idea To Acquire Construction Equipment Assets The Right Way ? !

Information on the benefits and the mechanics of leasing construction equipment in Canada. This is a cost effect manner of acquiring assets you need to run and grow your business

Leasing construction equipment , both new and used, is a huge part of Canada’s equipment financing industry. The fact that used equipment can be financed at satisfactory rates terms and structures is sometimes news to Canadian business owners and financial managers.

The reality is that this type of financing is a somewhat specialized area of finance and we urge clients to seek a trusted, credible and experienced lease and financing consultant or advisor in this area of Canadian business financing.

Used equipment, particularly in the construction industry, (but in reality a variety of other industries) is financed to the tune of hundreds of millions of dollars annually.

The equipment plays itself out in a variety of different ways – Companies grow, the acquire other firms, some firms go unfortunately, out of business , yet at the same time the values of equipment hold up significantly due to the quality and nature of the products . Naturally we have just gone through one of the most difficult times in the global economy ever, and , as such , for some of the aforementioned reasons there is a variety of equipment for sale and for re financing .

We would point out to clients that it is very prudent to liken the acquisition of used construction and heavy equipment to renewing your mortgage. By knowing you are pre approved at certain rates and structures gives you significant purchase leverage when negotiating a final price. Even though some industries and sectors, geographic and otherwise are in a slump there is still a deal to be made on a variety of heavy equipment.

When you are acquiring used equipment, construction or otherwise, you should be looking for the same type of leases that you would entertain for other business equipment financing. You have, as always, two options – lease to own, known as a capital lease, or a ‘lease to use’, more commonly known as an operating lease. Given the high dollar values of some of the larger equipment it clearly might make sense to entertain an operating lease if that type of lease can be negotiated satisfactorily. That comes of course with off balance sheet flexibility, and, as importantly, the ability to purchase, upgrade or renew at the end of the lease; and that’s your decision at the time, not the lessors!

Just look at the benefits of such financing. If you can derive both productivity and profits from a piece of used equipment, and get financing in place that is satisfactory in overall pricing, terms and structure you have saved many thousands of dollars in purchase price .

All of the traditional flexibility that is associated with lease financing accrues towards used equipment financing also – they include better cash flow management, the ability to control obsolescence, and the ability to put ‘good debt ‘on your balance sheet – i.e. assets that will be used for production and profits. You should also remember that you can negotiate to include soft costs in your used construction equipment financing – they might include warranty, maintenance, delivery and installation.

Years ago the American firm CIT did a study on why contractors and firms leased equipment – the results were very interesting:

Many firms leased because they saw a limited need for the asset – i.e. not a permanent need

Unexpected need for equipment often came up as a driver in lease financing

Interestingly enough cost was never really the major driver in the lease or purchase decision – as you thought it might be of course

Continually upgrading leases was also cited, given the need to stay current and competitive

So whats our bottom line – simply that you should consider the used equipment construction market for asset acquisition when it makes sense – and by working with an expert lease partner you should be able to maximize the benefits of your acquisition from both a financing and productivity viewpoint . That’s solid Canadian business financing sense!

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

Equipment Financing Canada

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What You Need To Know to Obtain Proper Lease Financing in Canada

Information on equipment financing in Canada. Financing assets properly is a key success factor in growing and operating your business

Clients always ask what they need to know or to provide in order to obtain solid lease financing for their Equipment Financing approvals in Canada. The entire lease financing process works best when you view it in a positive manner – it’s very much a consultative process with your leasing partner or leasing advisor. Because lease financing in Canada is such a broad industry representing the needs of all equipment acquisition financing in the country we strongly recommend to clients that they utilize the services of a trusted and credible advisor in this area.



Equipment Financing in Canada requires input from yourself in the following areas – credit, lease structuring, accounting, and of course the type of lease you wish to enter into. The majority of businesses in Canada, small and large, utilize lease financing for their equipment and capital expenditure financing needs.


In order to position your company properly you should be prepared to share the following information:


-Who is the Lessee? Depending on the size of the transaction you will be required to provide financial disclosure. Many leases in Canada under, say, $ 50,000.00 can actually be approved without financial statement disclosure. Approvals are often done automatically in a day or so, sometimes in hours, based on your firms rating and payment experience in Credit Bureaus and Dun and Bradstreet databases.

We would point out that if rate and payment is very important to yourself you might want to consider disclosing financial results even if they weren’t required, as that can sometimes get you a better rate. Naturally the other basic information required is similar to any type of business financing application – i.e. who owns your firm, what vendor are you buying the equipment from, etc.


Equipment – Clearly you want to position the asset you are acquiring as useful assets that will help you generate revenue and profits. A ‘buzz word ‘in leasing is often ‘profits through use, not ownership’, and that’s a great thing to remember. Many leasing companies will validate that the equipment you are acquiring is from a valid vendor or manufacturer.

Private sales from third parties are more difficult to finance – although we can also point out here that equipment financing in Canada often covers used equipment, as it is 100% financeable if the equipment has value and has been properly maintained, etc. On larger transactions an appraisal might be required.


Delivery & Installation - it is critical for you and the lessor to ensure you have a solid understanding of delivery dates and acceptance terms. In many cases your vendor can be paid in advance if they are out of the country, etc. However, actual payments on your lease will of course only begin when you have received the equipment, and it has been accepted as functional, etc.


Lease structure: Clearly this is one of the most important aspects of equipment financing and leasing in Canada. At its very basic you simply need to know the type of lease you are entering into and what the overall rates and structure and terms are. We can categorically say that this is probably where most of your time and outside expertise should be spent.

Leasing is a relatively simple process to complete, but you acquired knowledge of the types of leases available, who is offering them, what the rates are, and how your overall credit quality is positioned are key aspects of lease financing in Canada.


In summary, knowledge of leasing basics is a powerful asset for Canadian business owners and financial managers. Thousands of Canadian firms utilize lease financing for a variety of benefits, some of which might be more important to you than others. Investigate the benefits of lease financing and spend the required amount of time to ensure you receive the proper approval, rate, term, and structure for your equipment needs!

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'. 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.

Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com The company originates business financing for Canadian companies,specializing in working capital, cash flow, and asset based financing. In business 6 years the company has completed in excess of 45 Million $ of financing for companies of all size. For info on Canadian business financing and contact details see: http://www.7parkavenuefinancial.com/toronto_ontario_equipment_financing.html



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


Article Source: http://EzineArticles.com/3630883

Commercial and Industrial Equipment Leasing Solutions

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The Reviews Are In ! Commercial industrial equipment leasing solutions are a great way to grow your business
and conserve working capital It's cash flow managment 101!

Information on the benefits of commercial industrial equipment leasing solutions in Canada . The ability to finance assets properly is key to business success

Canadian business benefits from commercial leasing and industrial equipment leasing when it comes to asset acquisitions for growth and profits.

As a small or medium sized business owner in Canada you do not want to deplete your cash resources. We would point out that larger , even public corporations in Canada have that same pressure, because when they report to shareholders the focus of their investors and shareholders is often cash flow growth and preservation .

Business owners and financial managers in Canada look to lease financing as an alternative to taking on bank term debt. Canadian chartered banks do not provide lease financing; they structure your asset acquisitions as loans which supplement your existing borrowing arrangements with the bank.

Quite often , as with any asset acquisition , its all about the monthly payment and more often than not you will find that the lease financing solution provides you with the lowest monthly payment , and in many cases you can arrange that payment to reflect your actual working capital situation – i.e. seasonal payments, skip payments, quarterly payments ( if desired ) etc. That is true flexibility.


Most lease financing solutions in Canada are at a fixed rate, but in some cases variable rates are also offered.

When clients ask us what are some of the major challenges or pitfalls of equipment leasing and financing we advise them that questions can be answered in a very simple manner - business owners need to focus on which benefits of lease equipment financing appeal to them and then work with a partner who can deliver optimal rates, terms and structures based on your firms overall credit quality.

The challenge for Canadian business is working thru the plethora of hundreds of equipment finance firms, many of which may not be suited to your type of asset acquisition and your firms overall credit quality. In Canada rates on equipment leases depend on the size the of the asset, the financial strength of the leasing company (they borrow money too!) and the overall credit quality of your firm. Leasing when it comes to pure interest rate focuses on your ability to generate future cash flows to make the monthly payment.


Thousands of leases are written every year in Canada for commercial, industrial and construction equipment when the historical cash flow of a customer does not necessarily reflect the future ability to pay. In that case the lease becomes what is known as ‘structured ‘, which simply means that a down payment might be required, the term of the lease might be shortened, and in some cases some additional collateral might be required Lease firms are in business to write leases, so usually every effort is made to complete a transaction that makes sense for all parties.


We advise customers to work with a credible, experience and trusted advisor in this area who can help your firm navigate the occasionally complex world of equipment financing in Canada. When you are successful you will have benefited from one of the great financing strategies of Canadian business - improved cash flow, prompt approvals, flexible payments and potential tax and accounting benefits. Those are great reasons to lease finance your assets.






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