Need Equipment Loan and Lease Financing? Re-Program Your Leasing Finance Strategy Today!

Look at Equipment Financing in a Whole New Light !

Sometimes you just need to re-program

things to make them work better - that's what we're also suggesting when you review your lease finance and equipment loan financing strategies for your company.

Let's examine how you can maximize your leasing strategy to attain maximum benefits and minimum hassle! That's clearly a win win strategy.

Focus clearly on eliminating what we can only call the 'hassles' of dealing with other types of financing, It's all about ' time' and your ' business bandwidth ' today when you are visiting a new asset acquisition. Without a doubt we can state that leasing equipment is by far the quickest method of obtaining an approval, satisfying both your vendors need as well as your own time constraints.

With only a very basic financial calculator you can quickly review all your lease finance options - the favorite question of almost all clients is: 'What will my monthly payment be?' It's about time for you to answer that question yourself, and make sure that your cash flow and working capital remain intact on the equipment loan financing you are contemplating. How? Just remember that the only elements to any lease are: term, rate, amount financed, payment, and end of term option. If you know any 4 of those you can always solve for the final item, which in our case is payment. You should assume an interest rate that is consistent with your firms overall credit quality.

Business owners and financial managers should view their lease finance acquisitions in the context of your overall financial strategy. You might need to 're-program' your thinking on buying and paying for assets outright. Doesn't it make more sense to keep your cash and line of credit reserves intact, and match the useful economic life of the asset you are acquiring to a predicable cash outlay?

A quick way to 're-program' your leasing needs is simply to always use the same business template for each asset you are acquiring. They key aspects of that decision template, if we can call it that are: cash flow budgeting re the monthly lease payment, reviewing the asset in the context of not having to draw on your business operating line of credit, determining how long you will use the equipment for (thereby matching term and payment) and finally, factoring in balance sheet and tax advantages into your asset acquisition decision.

What's the biggest 're-programming' issue with most firms. It's simply their mild obsession

with rate. Yes a rate has to be competitive, but view the lease financing rate in the context of the current interest rate environment, the challenge of getting traditional bank financing, and the fact that in the current 2011 environment rates are probably going up and not down. The real reality is that you determine your own rates in your new leasing re-programming strategy! That's because the largest factor in determining rates for equipment financing is the manner in which you properly present your overall credit quality and financial health.

In summary, equipment loan financing, aka 'leasing' has been around for over a hundred years in North America. Take a hard look at why you finance your assets, reprogram your strategies around benefits and 'how to,' and acquire your assets with the knowledge you have made the best financial decision for your firm. Need help? Given a choice we'll take an expert over a rookie any day! Speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who will work on your ' re-programming strategy with you!


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 100 Million $ of financing for Canadian corporations



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/6050941

What’s The Deal With The ‘ Operating Lease’ Anyway? You Need To Understand FMV Leasing Vs. Finance Leases . Here’s Why!

Which Lease Finance Method Is Best For Your Company?



Information on the operating lease in Canada, aka FMV leasing. Here Are The Differences Compared With Finance Leases .





An ' operating lease '. Canadian business owners and financial managers have access to what is known also as ' FMV LEASING ‘... they just sometimes don't know what that is and when to use it . Let's cover off what you need to know.

When you enter into an operating lease there is generally intent by your company to return the asset to the lease company, as opposed to finance leases where you have a very clear intent to keep and own the asset at the end of the lease.

Oh, by the way though, just because you enter into FMV leasing (FMV = Fair Market Value ' it does not necessarily mean you absolutely have to return the asset. That is one of the beauties of operating leases; you have several different choices at the end of the lease term. We can see why the operating lease is called a ' true lease ' ... you're leasing... not owning... as simple as that.

One of the main challenges in what you need to know about an FMV lease is simply that the true monetary value of the asset in your transaction is not known at the beginning of the lease term. Take computer assets for example... with all their changing technology who could possibly predict with absolute certainty what a computer in today’s world will be worth 3 or 4 years from now?! Not us... that’s for sure and we toiled in that industry for 20 years!

In operating leases the actual accounting of the lease plays a huge role in your overall transaction. That’s because how the transaction is treated has a significant impact on your balance sheet and income statement. Also, accounting rules do not allow the lease company to specify the value of the asset at end of lease term. That often tends to be both good and bad for your company, the lessee as we will explain.

Many lease companies in Canada, and lessees try and arrange a side agreement between themselves. That certainly can be done, but it is somewhat dangerous as it is often viewed as circumventing the lease accounting rules around the operating lease. In a worse case scenario your auditors, or CRA - Revenue Canada might in fact impose penalties around interest, taxes, etc, as these are in fact impacted by the real structure of an operating lease.

The ultimate challenge of the operating lease is the value of the asset at end of lease term. You have to be able to be in a position to understand what the asset is worth from a monetization perspective. The good news is that with the internet and other sources business owners these days have a huge amount of information available to them with respect to the true value of any asset.

The lease company is of course entitled to a ' reasonable profit '. We would never fault them for that. But you as the business owner/manager and lessee have the total ability to ensure that profit is... reasonable. That’s because FMV leasing gives you the option of purchasing, returning, and even upgrading the asset when you are dealing with the right lease company.

If you're focused on understanding both finance leases and Operating Lease options for assets financed in Canada speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in achieving your financial goals in asset acquisition.

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/operating_lease_fmv_leasing_finance_leases.html

Resistance Is Futile! Experts Agree . Finance Leases And Equipment Loans Via Lease Financing

Canadian Equipment Finance – Here’s Why .. And How!


Information on finance leases in Canada . Asset acquisition via equipment loans and lease financing works .



Yes, in the case of Finance Leases in Canada resistance might be in fact futile, but unlike the movies where this term seems quite ominous it’s a fact that equipment loans and lease financing in Canada is in fact a valuable resource to Canadian business.

While many Canadian business owners and financial managers might view this form of finance as complex it sure doesnt have to be. Do you have to be an expert or have access to an expert to achieve the benefits of leasing? Yes, it sure helps, but it’s certainly not required. Your business needs to simply know all the advantages that come with this form of financing, and when you don't understand which advantages relate directly to your situation it’s difficult to benefit from the right decision.

Over the years we met hundreds of companies / business owners/managers who actually employ a lease strategy for equipment needs and probably overlook a lot of other positive aspects of this method of asset acquisition simply because they were uninformed, or misinformed .

What could be the reason for ignoring finance leases? One of them simply might be that from the outside it looks a bit overwhelming. Why? Because the decision to finance assets has a blend of legal documentation, financing and accounting inputs, as well as general common business sense!

Are we able to set out some sort of basic roadmap when it comes to this well used (80% of all business lease assets) Canadian business financing strategy? We think it’s possible.

First of all you have to know the general lessor market in Canada. Who are the players, and which ones should you focus on for your specific needs. In truth the market is quite segmented - there are larger Canadian and U.S. corporations doing business in Canada ... Canadian banks also participate, and then there are tens of independent commercial finance firms. These firms focus on different asset categories, and yes, even deal sizes. This is clearly a time when it sure helps to have an expert guiding you through the above maze.

Clients we talk to are, unfortunately focused on the implicit cost of the lease, in layman's language this equates to ' What's my rate?".

Documentation and addressing the previously mentioned tax and accounting issues in a lease are also critical to success and benefits achieved. Simply speaking, just choosing the right type of lease and lease structure, as well as whom to deal with can save you many thousands of dollars. We can't count the times a client has asked us to help them get out of lease transaction ( you basically can't) , or to help them in addressing a risk or cost issue associated with the wrong type of lease transaction they entered into . Knowing how your lease company profits (everyone is entitled to a reasonable profit for risk/reward, right?) alone allows you to better address those finance needs.

So, yes, according to our buddy DARTH VADER in Star Wars,

resistance might be futile, but the better plan of action is to embrace lease financing in Canada with a positive attitude toward achieving the best benefits and lowest risk based on your firms needs. Extra help? Speak to a trusted, credible and experienced Canadian business financing advisor who can ensure you're a ' deal maker ' when it comes to asset finance.

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/finance_leases_equipment_loans_lease_financing.html







Stan Prokop