Financing Sources In Canada : Little Known Ways To Use Capital Leasing And The Finance Lease

Looking For Evidence That Equipment Leasing Is For Your Company ?

OVERVIEW – Information on financing sources in Canada . Capital Leasing Via The Finance Lease Is A Solid Solution For Asset Financing Needs

Financing sources in Canada come in different categories. The finance lease is simply one of the best tools to maximize capital leasing. But does every business owner/financial manager know how to maximize this method of asset financing? Let's dig in.

We're told you can't fight a trend, and no method of financing assets has grown as equipment financing has over the last several years. North American figures suggest an overall 10%+ growth.

So whether that’s a ' micro ticket ' LEASE ' for items under 25k, or ' small ticket ' ranging from 25k to 100k there’s clear proof that whether its a 2k photocopier , or a multi million dollar piece of plant machinery or office technology its safe to say the evidence suggest this is one of your best methods to acquire assets .

The issues of ' cash flow ' and ' alternate sources of borrowing ' should be high on the list of key ' evidence ' analyzed by the business borrower.

What in fact are the main types of assets that consistently are financed on a day to day basis by everyone, including your competitors! That ' hit list ' includes:

Rolling Stock

Technology

Construction and Plant Floor Equipment

Medical equipment

Business owners/managers like capital leasing because credit approval on terms they can live with is much quicker than that offered by bank and other ' term lenders'.

While the true ' finance lease ' finances 100% of your asset needs on a ' lease to own ' basis don’t forget also that many firms still take advantage of operating leases. Operating lease characteristics include the ability to use but not own an asset, typically shorter lease terms ( 2-3 years are common amortizations ) , and attractive end of term options such as the ability to upgrade, purchase if desired, or return the asset .

We also add as a short footnote that two other aspects of equipment financing should not be overlooked - they are the sale leaseback of assets you already own, as well as the ability to collateralize owned assets under a short bridge loan.

Capital leasing often satisfies the true objectives of the business owner and offers maximum flexibility as a ' financing tool’

Looking for more ' evidence ' that the finance lease is right for your company? That includes:

Hedging asset life against inflation

The ability to pick terms from 2-7 years

Maximizing cash flow

Capital leasing rarely comes with restrictive borrowing covenants

Working through budget and cost restrictions

If you're looking for ways to use Capital lease financing as a tool to run and grow your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can provide ' the evidence '!











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 FINANCE LEASE 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

Equipment Leasing Canada. Reverse The ‘ It’s Not Working ‘ Feeling With Proper Finance Lease Solutions

Warning Signs You’re In An Unhappy Relationship ( That’s Equipment Financing Relationship By The Way !)

OVERVIEW – Information on equipment leasing in Canada . Finance fixed assets successfully via a finance lease, bridge loan, or a sale leaseback transaction





Equipment leasing in Canada. Is it safe for us to assume you're potentially feeling you're in an ' unhappy relationship ' with this method of financing business assets? The finance lease and related financial solutions are a tremendous way to grow your business properly, if you are in fact in a ' good relationship ‘. Let's dig in.

What then would some of those warning signs be that your asset financing relationship currently isn’t working? Some of them might be as follows -

You don't understand what works and what doesn't

Everything seems a little to complex sometimes

You're not coping successfully with tax/ accounting/credit issues

You don't know what the other party is in fact offering when it comes to choices

You're seeking approval but don't know how to get it



Let's address some of those issues, in effect mending that relationship that your firm is striving to be successful in.


When it comes to choosing a finance lease the business owner / financial manager needs to assess which type of transaction best suits the asset that your are acquiring . That might be a lease to own type solution, or alternatively an operating lease, in effect a ' lease to use '. Under that operating lease you have a tremendous amount of flexibility when it comes to returning the asset, upgrading it, and lowering the overall cost given the asset reverts back to the lessor if you so choose .

While finance and operating leases are the mainstay of business asset financing remember also that you can choose a sale leaseback scenario on assets you already own, bringing in valuable working capital when you need it. Also assets already owned can also be structured under a non - lease transaction, aka a ' bridge loan '.

While it's important to understand the tax and accounting and credit implications of equipment leasing in Canada one also has to remember that you've got tremendous resources to assist you - that could be your accountant, a lawyer, or business advisor, depending on the complexity of the lease .

Approval for a finance lease transaction has never been quicker than in these modern times. Electronic credit reports allow you and your lessor to exchange key financial documentation needed for approval almost instantly, and credit approvals for your transaction can often take place in a day. Larger transactions might involve meetings with your lessor, or negotiations around rate, terms, and structure.




Our bottom line? Simply that an investment in understanding the how equipment lease finance works and how it can benefit your firm will surely mend that strained relationship you're feeling when it comes to acquiring assets for your firm.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your finance lease needs.


Stan Prokop - founder of 7 Park Avenue Financial

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


7 Park Avenue Financial = Canadian Equipment Leasing Expertise And Solutions









CONTACT:

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com





















Stan Prokop

Leasing Assets ? Don’t Plead ‘ The Fifth ‘ When It Comes To Asset Financing And Using The Finance Lease !

Here’s Your ‘ Cheat Sheet ‘ On Canadian Lease Financing



Information on leasing assets in Canada . Asset Financing knowledge is key to a success finance lease strategy for acquisition of assets .




When it comes to leasing assets in Canada is it your turn to ' take the fifth '? We're talking about lease financing using such vehicles as the finance lease or operating lease to run and grow your business.

And oh yes, about ' taking the fifth '!

That's of course the U.S. term which invokes your right against self incrimination. When you do that you're simply saying you’re kind of guilty, don’t you think? But it doesn't have to be that way. Just spending some time in understanding some key lease finance basics will put you way ahead of the game. And here are some of those basics.

As a business owner or financial manager in Canada you have basically got three choices when acquiring a business asset - they are:

Purchasing the asset
Leasing the asset
Taking out a term or bridge loan on the asset

Typically our clients most often used excuse for considering lease financing is simply they would like to match cash outflows with the use of the asset over a specific period of time. In Canada lease terms tend to be from 3 to 5 years, but they can be shorter... or longer...depending on the asset and type of lease you enter into.

There are always some key accounting issues to consider when it comes to asset financing; most of those are quite positive when it comes to leasing - they include being able to depreciate the equipment and expense the interest.

Lease rates; unfortunately tend to be ' top of mind ' when it comes to client decisions to lease assets. The irony is that even when some owners/mangers don't even know how the lessor calculates those rates they still seem to be top of mind. We cringe every time we hear ' what’s my rate?' if only because there are so many other factors which determine a great lease. We sometimes think instead of asking ' what’s my rate ' the owner/manager should take ' I plead the fifth' because I am not 100% sure what I am talking about! But that’s a subject for another day.

One final point about the rate though and it’s simply that your credit quality is pretty well pre determined when it comes to credit approval for the asset in questions. Smaller ticket items in Canada, often up to 50k don’t even require financial statement disclosure, but you should be expected to provide full financial disclosure for the asset you are financing.

Because the industry is so competitive in Canada even if your firm’s credit quality has some issues the benefit of leasing is that your deal can be ' structured ' to ensure approval. Structuring simply might be a higher rate, a down payment, additional supplementary collateral, etc. The one downside of leasing is that it generally is not repayable without penalty, and the best you can hope to achieve here is some sort of negotiated lower buyout amount at the mercy of the lessor. So if you are entering into a 3 or 5 year lease... caveat emptor!

So, is the lease option for your firm when it comes to asset financing. Top experts in the field indicate that over 80% of all North American businesses utilize this method of asset acquisition. Spend some time understanding your options, and seek the services of a trusted, credible and experienced Canadian business financing advisor who can assist you with your ' lease vs. buy ' decision.

7 PARK AVENUE FINANCIAL
CANADIAN LEASE FINANCING EXPERTISE

Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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

Is A ‘ Good Enough ‘ Equipment Loan & Finance Lease Better Than ‘ Best ‘ For Canadian Finance Lease Needs ?

We're pretty sure, in fact very sure, that ' good enough' is not the attitude you take in any aspect of your business or business financing needs. Settling for 2nd best in today’s competitive environment is not a recommended strategy! So let’s look at how you can achieve some of the best leasing and financing equipment loan strategies for finance lease success in Canada.

New assets are always a challenge for acquisition when Canadian business owners and financial managers assess their respective financial positions. The price and therefore how you will finance these assets is of course critical to your overall asset acquisition strategy.

So when it comes to reducing cash outflows and in effect saving monies via a financing strategy is any wonder why over 80% of Canadian businesses utilize leasing financing as an integral part of their finance strategy.

But the reality is that many owners and managers don't understand the make up and the competitive offerings that make up the Canadian equipment loan and lease landscape. Even more importantly just understanding the rights and obligations and options of different types of leases can save any business owner or manager thousands of dollars, depending on overall purchase price. Even more dramatically we can say that making the wrong decision can actually cost you significantly.

Let’s utilize a quick example. Let's say you are focused on the amount of monthly payment and want to buy a 150,000 computer and software package (yes, software can be leased). So you contact a firm who you think can give you the best monthly payment, and you find you are quoted and approved for a 5 year term, monthly payment of 3000.00$. A quick expert calculation will tell you that you will pay 31000$ in interest over that 5 year term at current competitive rates. Sounds ok?? Maybe, maybe not.

Moving on... what if we told you that you could finance that same system for 3500$ / mo for a 3 year term , and at the end of the term you could return, upgrade , or choose to extend the lease .
For only 500$ more you have shortened your term, recognizing that most computers don’t last 5 years. In effect you have utilized an operating lease strategy to effectively manage your assets - that’s a solid financing decision in leasing financing.

We have utilized a simple example of how you need to in essence separate the pricing and the purchase of the asset from the decision of how to finance that same asset.

We're the first to admit the leasing process can be perceived as complex in Canada. There are hundreds of equipment loan and finance lease firms. They have different ' credit boxes ‘- meaning simply you must fit into their asset, deal size, and credit criteria box. Additionally numerous firms tend to complicate matters by throwing arcane terms at you such as ' down stroke ' , ' security deposit ', 'capital lease ' ' off balance sheet financing ' ' admin set up fees ' .. Etc. And on it goes.

In summary, leasing financing in Canada has huge benefits. Billions of dollars of assets are leased every year. Your competitors finance their assets. And yes, you could very quickly go out and achieve a ' good enough ' lease.

Want a better solution though? Simple speak to a trusted, credible an experienced Canadian business financing advisor. ' Good enough ' will soon become best when it comes to sourcing and structuring asset financing that makes sense from a Canadian equipment loan perspective .

P.S. We knew you would never settle for 2nd best!





Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

A Shortcut To Leasing Equipment And Business Finance Lease Solutions & Services In Canada

Isn't any shortcut in business better? As shortcut is of course a ‘method or procedure that reduces time or energy and still accomplishes something ‘. Is it just us but isn't any Canadian business financing shortcut absolute good thing, as well as an advantage over your competition?

We're going to cover off some great shortcuts for leasing equipment in Canada, and how the ability to get a business finance lease with the best rates, terms and structures becomes a financing services victory for your company.

Also, when you can add a host of other programs services and structuring that are uniquely suited to your business... well... clearly that’s a win.

Doesn't it make sense to know what you are looking for prior to going out to get it - that's our first shortcut tip - determine whether you need an off the shelf lease financing services solution, or whether a customized business leasing equpment solution is required . A simple way to achieve this shortcut is to focus on the 5 elements of a lease, and which ones need special attention for a finance lease based on your company circumstances.

What are those key elements - simply the term of the lease, the interest rate associated with your credit quality, the size of your transaction, the monthly payment your cash flow budget can afford, and finally the end of term option that again, best suits your firms needs.

That's a mouthful, but most Canadian business owners and financial managers don't realize they have the ability to influence, and in some cases negotiate some of the key five elements - thereby creating your shortcut to leasing equipment finance success.

Let's delve into that further. Let's assume you know the asset or equpment that you want - you've evaluated your requirements and want a financing services program that best suits your company.

Now its time to take work on getting the flexibility you need to maximize those financial advantages. They include of course full financing of your asset with minimal or no down payment, flexible monthly payments geared to your cash flow and working capital concerns, the ability to use off balance sheet financing if you need it , or even in many cases generate a positive cash flow by leasing back equipment you own already .

In many cases you can achieve a quick shortcut to lease financing approval by working with your lessor on a term that works for both of you - it has to be a win win situation. On your side you want to match payments to economic benefits of the asset you are financing... the lessor is more concerned with asset value deterioration and your overall all credit worthiness.

If you are generally familiar with the finance lease business and leasing equipment industry in Canada you know it consists of a multitude of players , they all have different ownership , some foreign, they have different asset needs, and their pricing they provide you with is based on , guess what, their own borrowing practices !

The shortcut to best pricing and best structure is therefore knowing what leasing finance firm has the best appetite and expertise to provide you with a business finance approval that works .

In summary, if you want to achieve shortcuts in business financing services related to leasing equipment you would do well to speak to a trusted, credible and experienced Canadian business financing advisor who knows the business and will accelerate the shortcut to best asset financing you can hope to achieve .



Stan Prokop - founder of 7 Park Avenue Financial -
http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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