Finance Solutions Via Leasing : Leased Assets Without Tanking Your Business

The Have More vs. Have Not In Equipment Financing In Canada

OVERVIEW – Information on finance solutions in Canada. Leased assets offer numerous advantages when considering the lease vs. buy decision and that’s why these key leasing equipt .points matter

Leasing is used by over 80% of all North American businesses. But do those firms that currently choose finance solutions via leased assets really have more going for them vs. those ' have nots' who are constantly searching for an asset finance solution? Let's dig in.

Picking the right equipment financing partner and solution is as much knowing what’s going on as it is asking the right questions. One of our mentors once said ' I never learned anything listening to myself talk ‘!

Equipment leasing is a year round solution, depending on what’s happening in your company and your industry. There are numerous challenges in growing a business, and if your business and industry is dependent on new assets and technology ' refreshes' you're arrived at the right spot.

Let's take a look at questions you should be asking when it comes to the end of your ‘lease vs. buy ' decision. One of the tenets of leasing is that if an asset improves your business and has a longer life cycle, or need for change, you should be leasing. Your ability to determine the right monthly payment allows you to consider cash outflows on the lease vs. benefits you will receive from increased revenues, profits, or improved processes.


Next it's important to determine what leasing company you want to work with. This might be on a long term relationship basis, or simply for a specific one time need. The right partner firm will allow you to clearly understand cash outflows on the lease, the actual structure of the transaction, and any flexibility that might be required regarding seasonality of payment. Also, a solid partner will give you some choices around type of lease you need (capital, or operating), as well as balance sheet or tax ramifications that come with equipment finance.

The right partner will also help you understand the ramifications of the residual value of the asset at the end of the term - under certain circumstances you want to know how you can extend a lease, upgrade it, buy it out, or return the asset.

By the way, the right long term lease partner is also capable of getting a one time ' MASTER LEASE' in place, allowing you to simply add schedules to the lease as you need new assets - bottom line = quick/easy.

Also investigate your obligation around things such as insurance, marinating /servicing the asset (if required) and knowing your legal rights around what the industry calls ' end of term '.

So its clear , you can choose to be a ' have not ' in lease financing, but some key basics and working with the right partner will put you in the coveted ' have more ' camp - giving you 100% asset financing, , cash flow conservation, inflation hedge, and the ability to stay up to date with changing technology and fixed asset needs.

Leverage the knowledge and expertise of the right asset financing partner - seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your leasing finance solutions.




Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :


7 PARK AVENUE FINANCIAL = CANADIAN EQUIPMENT FINANCING 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

Business Finance Solutions Needed ? Wake Up To Alternatives To A Term Loan Via Alternative Lending Offerings

There’s No Secret Society

When It Comes to Business Finance Solutions From A Term Loan To Alternative Lending Choices




OVERVIEW – Information on business finance solutions in Canada . Whether it’s a term loan, bank financing , or alternative lending its all about knowing your options . Here’s why, and how









Are finance solutions for Canadian business a necessity? Whether it's a term loan, chartered bank financing, or choosing from alternative lending vehicles top experts agree you might be able to survive awhile from a lack of profits, but finance solutions and access to cash flow are critical.

And contrary to what you might think, there's no secret society around access to solid business financing choices. Let's dig in!


The goal is of course ' health’, i.e. healthy business. That comes from managing your assets, financing them, giving your clients credit terms, and being able to access business credit.

It’s key to understand how the ' financial structure' of your business is viewed by others. For instance if you have a lot of debt but are still viable you will reasonable be expected to pay 2-3 times the amount of interest charged by Canadian banks via alternative lending options . When you think about it how you manage your assets is really how you make your money.

Knowing how to evaluate different financial solutions comes with numerous benefits - the ability to know you can meet day to day obligations and to evaluate growth based on cash , not profit. ( There's a difference!)

Working capital and cash flow access only become critical... when you need them! Whether its external factors such as a recession, or internal issues specific to your company and industry your inability access credit puts your company on the precipice.

As we have stressed in the past it’s about managing assets and financing assets. Business owners and financial managers in the SME sector should feel good about the fact that even the largest corporations place a major focus on cash forecasting, financing, and managing assets.

The range of financial solutions available to Canadian business might be larger than you think. Common solutions available to your firm include:

A/R financing

Inventory finance

PO/Supply Chain Financing

Asset based business lines of credit

Canadian commercial bank credit - (revolvers/term loans)

Equipment Financing

Bridge Loans on Assets

Sale Leaseback Strategies

Tax Credit Monetization

Securitization

How does the business owner/financial manager know when they need a specific type of financing? Essentially the answer to that lies in your operating cycle and understanding you business around issue such as:

Customer credit quality

Payment experience versus your payment terms

Short term and long term fixed debt obligations and how they impact cash flow

Your ability to project cash receipts.

How do the above issues affect your financing needs? Simply that asset management will both save you from a cash crisis, eliminate the need for more financing than you need, and allow you to be move competitive in client terms and the ability to take on more business opportunities /larger contracts.

It's a bit of a balancing act

because you want to limit the amount of financing you need to access but you still want to be able to grow. If you’re looking for traditional, or alternative lending that matches your needs seek out and speak to a trusted credible and experienced Canadian business financing advisor who can provide that ‘wake up’ call to finance alternatives.



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 = Business Finance Solutions




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

Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

Stan Prokop